MECHANISM FOR IMPLEMENTING PUBLIC-PRIVATE PARTNERSHIP IN WATER SUPPLY AND SEWERAGE ENTERPRISES

Abstract

The article explores the mechanism for implementing Public-Private Partnership (PPP) in the water supply and sewerage sector in Ukraine. Reliable and uninterrupted water supply and sewerage services are critical components of any country’s infrastructure. However, Ukraine faces significant challenges in this sector, including outdated infrastructure, high operational costs, and insufficient investment. The study highlights the urgent need for modernization and identifies PPP as a key instrument for attracting private investments and innovative technologies to improve infrastructure efficiency.
The article begins by analyzing the current state of Ukraine's water supply and sewerage sector, emphasizing the deterioration of infrastructure and financial constraints. Many water supply and sewerage systems in Ukraine have been in operation for over 50 years, leading to frequent failures, water losses, and environmental pollution. The war-related destruction has further exacerbated these issues, particularly in the eastern and southern regions, where damage to water supply networks and pumping stations has resulted in water shortages and deteriorating service quality.
The study examines various PPP models, including concessions, joint ventures, and public-private contracts. The research underscores the importance of a strong legal framework and effective risk distribution between the state and private sector to ensure successful PPP implementation. Financial incentives, state guarantees, and tariff stability are identified as critical factors in attracting private investment.
The article also addresses the challenges facing PPP implementation in Ukraine, including political instability, inadequate legal regulations, and public distrust toward private investments in strategic sectors. The study proposes specific measures to improve the PPP mechanism, such as simplifying contract procedures, introducing state guarantees for investment protection, and enhancing public oversight and transparency.
International experience, particularly from France and the UK, demonstrates that well-structured PPP models can reduce state expenses and increase infrastructure efficiency. The research suggests that adopting these models in Ukraine, with necessary adaptations to local conditions, could significantly improve water supply and sewerage services. The findings highlight the need for comprehensive regulatory reforms and financial incentives to enhance the attractiveness of PPP projects for private investors.
The article concludes that PPP offers a viable solution for modernizing Ukraine’s water infrastructure and ensuring sustainable service delivery. Further research should focus on evaluating the performance of implemented PPP projects and refining the legal and financial mechanisms to maximize their effectiveness.