Public-private partnerships are forms of mutually beneficial cooperation between the state and private business. Examples

In the economy of many countries a special form of relations between commercial enterprises and authorities has appeared. To denote this interaction, the concept of public-private partnership is used. Let us consider it in detail below.

General information

The state and private business form an alliance for the implementation of projects of public importance in a variety of areas of activity. The interaction of power and commercial structures has now reached a new level. At present, it is fixed at the legislative level in 224-FZ. These relations can be fully considered as an integral feature of the mixed economy.

Features

The development of public-private partnership promotes the formation of basic models of financing, management methods, property-related relationships. In this process, a number of issues concerning the redistribution of powers acquire a fundamental importance. They arise as an inevitable consequence of the expansion of interactions between commercial structures and authorities. Some experts believe that in many cases public-private partnerships are, to some extent, privatization or its absolute alternative. Such an opinion, for example, speaks on concessions. Meanwhile, it is worth noting that public-private partnership is really an institutional way of transforming the spheres of activity, traditionally related to the conduct of power. However, the instruments used in cooperation do not lead them beyond the scope of state regulation.

Redistribution of powers

Public-private partnership is cooperation that involves not all legal opportunities, for which the sovereign right of the owner in economic circulation disintegrates, but only a certain part of them. It is about the right to manage, change the capital value of material values, the assignment of certain powers to other persons. Sufficiently extensive experience of redistribution of legal opportunities between the authorities and commercial structures is available in the areas of public services, namely, infrastructure industries. They historically formed the traditions of the state's transfer of certain basic powers to private business. The authorities are responsible to society for the continuous receipt of public goods. This stipulates the desire to preserve certain branches of state property. At the same time, private enterprises are characterized by high mobility, efficient exploitation of resources. In addition, commercial structures tend to innovate. Public-private partnership is a way to take advantage of both types of property without profound changes in society.

Participation of government

The state remains a participant of public-law relations under any conditions. This circumstance is also key for civil legal relations in which power as a sovereign is not an ordinary subject of law. In this regard, we can not talk about the initial equality of private and public partners. It will come only if, on the basis of the sovereign rights of the authorities, the terms and specifics of the implementation of civil legal relations will be defined in the agreement on interaction. In other words, the state will become a special subject. This is expressed primarily in the fact that the government itself establishes the legal framework in which all other participants should act. In addition, it retains its administrative, administrative functions, even if it enters into the principle of equality in relations. This is due to the authority to issue administrative acts. They, in turn, ignore this equality. Initially, it is assumed that the state enters into civil circulation not to meet its own specific interests, but for the most effective implementation of public authority.

The role of power

The projects approved under PPPs are not just a mix of resources. They are a very special configuration of the respective powers and interests of interacting entities. First of all, the state, acting as one of the parties to the partnership, is the bearer of socially significant goals and needs. In doing so, it performs the control function. Secondly, as a participant in the economic turnover, the state is interested not only in the high results of partnership, but also in ensuring its commercial effect. In addition, like any normal entrepreneur, a participant in such a relationship tends to maximize profits. In this regard, in the commercial interests sector between the parties is quite appropriate, and in some cases it is necessary to trade about the division of probable risks, the nature of the transferred powers, the terms of their provision and use.

Property Relationships

As international experience shows, the degree of participation of authorities and commercial structures, the conditions for their combination may differ, and in some cases very significantly. So, organizations can act as a party to the agreement. As a rule, these are state contracts for the supply of goods or services for state needs, for management, for providing technical assistance, and so on. In this case, property rights are clearly separated. There are other forms in which such a public-private partnership is manifested. Examples of this are production sharing agreements and leasing agreements. Within the framework of interactions, a partial transfer of a number of proprietary rights is possible. Typically, they include the ability to use, manage and own property. Such partnership takes place when concluding concession agreements. In addition, there is an equity or shareholder participation of an entrepreneur in state structures. Public-private enterprises are an expression of a higher level of capital integration within the framework of cooperation between commercial organizations and authorities.

Key Features

The structure and models of public-private partnership are very diverse. However, there are a number of characteristic features that make it possible to single out this institution in an independent category. First of all, it should be noted that PPP is created as a formalized cooperation of commercial and state structures. The entry into such cooperation is aimed at achieving specific goals and is based on the relevant arrangements of the participants. Analyzing the foreign experience, we can note the following features of the partnership:

1. Certain, often long periods of validity of contracts. They can be 10-20 years, and in cases of concessions - up to 50. State contracts are formed for a specific object. For example, it could be a road, a port, an infrastructure. Execution of the order is limited to the exact date.
2. Specific types of funding programs. Realization of projects is carried out at the expense of investments of the commercial organizations, supplemented with resources of state funds. There is also a joint investment of several participants.
3. Compulsory availability of competition. In such circumstances, for each contract or concession agreement, there is a struggle between potential participants.
4. Responsibility between the parties is distributed in specific forms. The state determines the goals from the position of public interest, establishes qualitative and cost indicators, monitors the implementation of programs. At the same time, the commercial structure assumes responsibility for operational activities at various stages - development, financing, management, construction, operation, and practical provision of services to users.
5. Risks between the parties are divided on the basis of agreements.

Contribution of participants

Commercial structures provide professional experience, financial support, effective management, efficiency and flexibility in the decision-making process, demonstrate the ability to innovate. Within the framework of partnership innovative methods of work are introduced, equipment is modernized, technologies are improved. In the process of cooperation new forms of the production organization appear, companies are formed, including with foreign capital, effective cooperation with contractors and suppliers is formed. At the same time, the demand for well-paid and highly skilled employees is growing in the labor market.

The state, in turn, provides certain powers of the owner, provides tax relief, guarantees, financial and material means. The authorities, within the framework of cooperation with commercial structures, have an opportunity to realize their direct functions - control, regulation, observance of public interest. As the partnership develops, the state can smoothly shift the emphasis from specific problems of the erection and operation of facilities to administrative and control tasks. Emerging entrepreneurial risks are redistributed towards commercial structures. The public significance of partnerships is that as a result, society benefits as a user of higher quality services.

Cooperation at the local level

Particular importance of the program of public-private partnerships are in the municipalities. Cities and villages bear the main burden for the realization of socially significant tasks in various spheres of management. These areas, in particular, include transport, utilities, nature protection, housing construction, gas and energy supply. A key problem faced by local authorities is lack of funding. In this connection, the attraction of the capital of commercial structures, in accordance with 224-FZ, becomes a common practice.

Administrative Agreements

In the world practice, various forms of cooperation between the authorities and commercial companies have been adopted. State contracts are one of them. They are administrative contracts that are concluded between a commercial organization and a management body (federal, regional, local). The most common public-private partnership in the social sphere, in the delivery of products for municipal or state needs, management, technical assistance. In administrative contracts, ownership is not granted to a commercial organization. At the same time, risks and expenses fall entirely on the state. The interest of the commercial structure is that, according to the contract, it gets the right to the agreed part of the income or collected payments. As practice shows, such agreements allow not only to increase the prestige of the company, but also to receive guaranteed preferences and benefits, stable profits and take a position on the market.

Leasing agreements

Within the framework of cooperation, deals have been extended on the transfer of property located in municipal or state ownership, to a commercial structure for use for a fee. It can be a building, a building, a building, a plot of land. Rent in the traditional form implies the return of the subject matter of the agreement. At the same time, the owner has the right to dispose of the property, and the commercial structure is not provided for the conclusion of the contract. In some cases, the organization may redeem the structure, premises or land. Rent in the form of a lease always assumes this condition.

Concession

This form of public-private partnership is becoming more widespread at the present time. The peculiarity of the concession is that municipal or state bodies remain full owners of property within the framework of cooperation, authorize the commercial association to perform the functions stipulated in the contract for a certain period. For this purpose, the firm is given legal opportunities necessary to ensure the operation of the concession facility. For the operation of property, the commercial structure shall pay a fee in the manner and under the conditions established by the agreement. At the same time, ownership of the product is transferred to the user.

Features of the agreement

The concession has the following features:

1. The object is always municipal or state property. They can also be the monopoly activity of the state or the Defense Ministry.
2. As one of the participants in the agreement is an authorized municipal or state agency.
3. The purpose of the concession is to satisfy public needs.
4. The basis of relations is an agreement.
5. The concession presupposes the return of the subject matter of the contract.

When concluding contracts, leasing agreements, the state or municipality acts as a subject of civil law. Accordingly, for their effective work, the provisions of the Civil Code are sufficient. With concession relations, the state is primarily an institution of public law. In this role, it not only transfers part of the powers to commercial companies, but also delegates a certain share of power functions. Such provision is allowed only in accordance with the normative act. Among the public legal features of the concession, it is necessary to emphasize the consolidation of public interests in them, represented by the state. Under the agreement, the commercial structure must obey them, that is, ensure the continuity of the provision of services, tariff equality, accessibility, exclude discrimination of consumers.

Areas of distribution of concessions

The most popular in the world practice such agreements have been in the infrastructure industries. In these sectors, intensive investment and the influx of highly skilled personnel are needed. At present, there are three main types of concessions:

1. On already existing objects.
2. For the construction or modernization of infrastructure.
3. Transfer of municipal or state property to management.

Within the framework of these types, forms of concession agreements based on different combinations of competencies, as well as the permissible limits of specific investment and business activities, are possible.

The situation in Russia

In Russia, the normative act on concession agreements entered into force in 2005. However, at present such cooperation has not been developed. The main reason for this situation experts call insufficient security of the user's rights. The risk borne by a commercial organization that relates directly to its activities under the agreement is burdened by the existing duty to pay a high concession fee. However, the penalty for violation of the terms of the agreement by the user in the normative act is not established. At present, discussions are continuing on amendments to the law, which could stimulate the emergence of concession relations in Russia.

Product Sharing Agreement

This form of relations between commercial structures and state bodies has some features of a concession. However, this agreement has a number of features. The differences are primarily in the configuration of property relations. Under the concession agreement, the rights to the products created by the private partner remain with him. According to the agreement on the division of results of activities, it remains only their part. The procedure and conditions for the transfer of rights are stipulated by a special agreement.

Additionally

Public-private partnership in education has gained the most popularity. So, at present, work is underway to introduce a dual training system. This form of PPP is spreading in St. Petersburg and Moscow. It involves the involvement of manufacturing companies in the process of training highly qualified employees. Training in this case is carried out without interruption from production activities.

Another common form of interaction is state-private partnership in health care. It is mainly about recreational facilities, sanatorium and resort sector. Over the past few years, forms of public-private partnership are developing rapidly. Initially, concession agreements were used to construct parking lots, motorways, and provide heat supply. Today, cooperation in the defense, transport services, cultural and educational spheres is gaining increasing popularity. When implementing programs, various mechanisms of interaction between the authorities and commercial organizations are used. They are differentiated in accordance with the scope of the property rights, the financial obligations of participants, the principles of risk sharing, as well as the responsibility for performing certain types of work.