partnership/overview/what-are-publicprivate-partnerships

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in order to attract additional investments and as a means of increasing the efficiency 
of financing from the state budget. Public-private partnership can be defined as a 
mutually beneficial cooperation between the public and private sectors with a legal 
basis, which is jointly implemented by the partners under the condition of more 
effective implementation of the project. Or, if one of the parties does not have enough 
opportunities to implement the project, the necessary resources for the 
implementation of the project, including organizational and legal information, can be 
established on the basis of an agreement. The purpose of this cooperation is to 
implement socially important objects, as well as to attract private investments to the 
economy. The form of PPP is a legally formalized system of relations between the 
state (municipal structure) and the private sector, which includes joint financing and 
risk sharing. At the same time, state property, state (municipal) services are the 
subject of such relations. Organization of PPP projects includes several stages.
Private sector and public cooperation represents the participation of business 
entities in the organization and management of production, household services and 
social infrastructure, as well as in the provision of social services. 
Based on the above, public and private partnership relations are a system of 
economic relations that represent the role and role of the government and economic 
entities in complying with social obligations and necessary reforms and state 
investment policy. Public-private partnership is a business relationship and economic 
relations between the state and the private sector established for the purpose of 
development, planning, financing, construction and operation of infrastructure 
projects. 
From an economic point of view, the purpose of PPP is to stimulate the 
attraction of private investments in the production of services, work and consumer 
goods, which should be provided at the expense of the relevant state budgets. 
Properly organized public and private partnership relations distribute tasks, 
obligations and financial risks among subjects in the most optimal way. In public-
private partnership, state agencies, including ministries, committees, local authorities 
or state-owned enterprises, are involved in the relationship. Partnerships with the 

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private sector may include local or foreign business entities, as well as legal entities 
or investors with technical or financial capabilities related to a project. 
Given the volatile economic and political environment nationally and globally, 
states and private firms are required to rely on modern and up-to-date approaches to 
make informed and rational decisions about their private investment in infrastructure. 
Therefore, this paper seeks to explore and analyze the factors that may influence PPP 
mechanisms using a comprehensive set of macroeconomic data. 
In conclusion, it should be noted that the comprehensive approach of our 
government to accelerate socio-economic development through the effective use of 
the economic potential of the regions has already produced its results and will serve 
our rapid development in the future. The most important thing is that through 
integrated and balanced socio-economic development, the living well-being of the 
population will increase organically. In these processes, public-private partnership 
relations have a special place and community. Because the economic development of 
the country depends on the infrastructure, public-private partnerships are undoubtedly 
one of the best solutions for infrastructure development. Therefore, the analysis of 
financial relations in public-private partnership, its development is one of the main 
issues in financial reforms. 

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