“Public-private partnership as an effective mechanism for attracting private investment in achieving the aims the socio-economic development of Ukraine”

The article analyzes public-private partnership (PPP) as a form of interaction between state and business in the context of optimizing the Ukrainian economy. According to the results of SWOT analysis of the implementation of PPP projects in the infrastruc- ture of Ukraine (2017–2019), the main criteria that determine the necessary model of public-private partnership were substaintiated, namely the distribution of investments, risks, obligations between the state and the private sector, the term and object of the agreement. The study analyzed the impact of economic, political, legislative and criminal processes on public-private partnerships in Ukraine. It was proved that the formation of specific allocation relations based on the interaction between public and private property is the most important feature of public-private partnership, which distinguishes it from other forms of interaction between the state and business. Advantages of PPP are as follows: the increase of management efficiency of state and municipal property objects, the reduction of tax burden on the state budget and optimization of budget expendi- tures on public services provision, the maintenance of budget-funded institutions, etc. It has been established that the PPP is the best alternative to privatization in order to attract private investment in strategic infrastructure facilities.


INTRODUCTION
Nowadays, the practice of using different forms of partnership between the state and private business in different sectors of national economies is becoming more and more widespread.Such partnership contributes to the activation of the investment orientation of the economy, ensuring long-term socio-economic growth.
Over the past few years, public-private partnership in Ukraine has become increasingly important, because attracting investment, developing national, regional and local infrastructure, expanding and providing better services to citizens are priorities for the state.It is also evident, that ensuring a high and stable rate of development of both country and its regions is impossible without the effective partnership of state and/or local authorities with representatives of private business.Strategies and programs that focus solely on the use of budget funds do not allow authorities to implement large-scale, strategic pro-jects that shape the country's competitiveness.The world-renowned alternative to this type of financing is public-private partnership.
Implementation of large infrastructure projects in various sectors of the economy requires significant investment resources, which can be a powerful source of private business.At the same time, business interest in state support increases, which will reduce the risks of private investment, increase the reliability of investment projects for credit institutions, including the ones at the local level.
Public-private partnership as a component of the economic institute of contemporary social development, its various forms have great potential for achieving the general goals of sustainable development of the country based on the consolidation of state assets with investment, management and other resources of the private sector.

THEORETICAL BASIS
Public-private partnership as an economic concept was formed in the late 90s.Since then, the term "public-private partnership" (hereinafter -PPP) remains unchanged, which can not be said about the theoretical and methodological elucidation of the essence of this public institution.It is constantly changing, improving, due to the deep nature of the PPP as a practice of interaction between the state and business to achieve the overall goals of socio-economic development of countries (Kredisov & Bilous, 2016).
The essence of the PPP is an institutional and organizational unity of government and private business to implement socially important projects in a wide range of fields of activity, from developing the strategically important sectors of the country's economy to providing the public services, both for the country as a whole and for individual territories (K.Pavlyuk & S. Pavlyuk, 2010).
According to Danylyshyn (n.d.), the PPP mechanism, as one of the forms of interaction between the state and the private sector of the economy, offers better opportunities to obtain the desired level of efficiency in the implementation of largescale projects important for the whole country.
The term "public-private partnership" in most foreign countries is used to determine the existing forms of cooperation between the state and other economic entities.A critical analysis of existing scientific views has shown that the definition of PPPs among both domestic and foreign scientists contains significant differences (Uzunov, 2015;Laptiy, 2017;Filyppowa & Malin, 2017).
The partnership is carried out between the institutions of the state at all levels of government, the private sector, which includes investors and business organizations, and civil society representatives to address the socially important issues that are relevant to the competence of the state and to Source: Compiled based on the analysis of legislative acts regulating public-private partnership issues.obtain mutual economic benefits.The state partner focuses on the adoption of necessary regulatory acts, the definition of goals and objectives of PPP projects, quality of services, pricing policies, monitoring of project implementation, that is, it performs regulatory and coordinating functions (Varnavsky, Klymenko, & Korolev, 2010).

Figure 1. Public-private partnership criteria
The issues of PPP in Ukraine are regulated by the Laws of Ukraine "About Public-Private Partnership," "About Concessions," three other laws and separate articles of the Civil and Commercial Codes of Ukraine, as well as 18 by-laws.
The study of the dynamics of private equity participation in investment projects according to the World Bank is characterized as follows (see Figure 2).
Analyzing the experience of developed countries of the world, such as France, Germany, Austria, Italy, Brazil, where public-private partnership is seen as a prerequisite for the development of an efficient market economy, it should be noted that the most active in these countries is the form of public-private partnership as a concession.Such partnerships are effective in the social sphere (education, tourism, health care, etc.), municipal infrastructure (water and sanitation, etc.) and transport infrastructure (highways, airports, etc.).At the same time, the transport infrastructure takes the leading position, further -social infrastructure (Pavlova, 2011).
The interaction between business and government is an important indicator of the state of society as a whole.The relationship between them affects the nature of power, style, and technology management.
According to the UN Summit Outcome "The Transformation of our World: An Agenda for Sustainable Development to 2030," which approved 17 Sustainable Development Goals and 169 Objectives, the Government of Ukraine has elaborated the National Report "Sustainable  Development Goals: Ukraine," which provides a vision of the landmarks the achievement by Ukraine of the Objectives of Sustainable Development (OSD), which defines the basic indicators for the achievement of the OSD in our country, following the adaptation of 17 global OSDs, considering the specifics of national development.Among the tasks identified by Ukraine in the long run are extremely ambitious and complex, in particular to reduce the energy intensity of GDP by 2 times; to provide an increase in the rating of Ukraine in the ease of doing business, rising from 81 to 20 place; 5 times increase the cost of performing scientific and scientific and technical works, as well as more than 10 times -the share of realized innovative products in the volume of industrial; to increase the net inflow of foreign investments by almost 6 times; increase the number of projects implemented under the conditions of public-private partnership to 45.The achievement of the OSD requires the partnership of state bodies, the private sector, civil society, and citizens (Reports from the National Report "Sustainable Development Goals: Ukraine," 2017).
One of the important tendencies in the development of the PPP after the approval of the OSD was the transformation of the traditional PPP model into a model compatible with the SDD, which was called "human-oriented PPP."This new type of PPP is positioned as a mechanism for achieving the sustainable economic and social development through PPP programs with a focus on its role in ensuring the social equality and sustainable development.An important subject of the study is the position of Ukraine to take into account the World Bank's recommendation on the Public Expenditure and Financial Actuation (PEFA) and the related assessment tool of the public finance management efficiency assessment system for public investment management to take into account similar features between management state investments and PPP given the need to ensure their coordination within the framework of an interconnected system of budget planning (The World Bank, 2015).
These are two unconditionally related processes.Both support the creation of infrastructure and provide services that are characterized by a significant component of the public good, or consider market imperfections that impede the provision of these services by the private sector.Both provide for public sector financial liabilities, including direct and/or contingent liabilities.However, the management of these processes is often carried out separately, negatively affecting the proper selection of projects, preventing the effective use of inadequate public resources, creating unnecessary financial risks, and thus undermining financial stability.
The PPP product in the context of public investment management aims to create a detailed evaluation tool that covers the entire investment cycle, from policy and from pre-evaluation to factual verification based on a unified approach to the effectiveness of the management of traditional government investment and PPP.
The analysis of the opinions of scientists and researchers on the essence and content of public-private partnership and its comparison with the essence and content of public-private partnership gives grounds to conclude that public-private partnership is a system of relations between the state and business that should be considered as a kind of European public-private partnership.The meaningful use of these concepts depends on the model and culture of public administration, the level of socio-economic development of the country, the business climate, and the provision of invariant security (Mashchenko, 2018) of any country.
Public-private partnerships are one of the tools to attract additional investment resources in the public sector of the economy and promote the development of state-business partnerships.In the complex conditions of the Ukrainian economy, PPP and People-First PPPs are an actual form of cooperation between public and private partners, an urgent requirement not only for profit but also for social responsibility to society.The implementation of the PPP mechanism will contribute to the implementation of the state policy of Ukraine, oriented to international standards and clearly aimed at increasing social standards of living, economic growth, and the achievement of sustainable development of the country.

RESULTS
The According to a special report from the World Bank entitled "Implementing Ukraine's Economic Growth Potential" as of May 23, 2019, achieving a high level of economic growth will require a combination of increased productivity and investment.Investment support and productivity growth will require policy reform in three areas: • reducing the role of the state in the economy, removing the obstacles to the use of factors of production and strengthening the human capital to create the impetus for productivity growth; • promoting FDI and integrating into global value chains, improving the logistics and communications to maximize the potential of foreign trade.One of the most important factors in attracting FDI is the protection of property rights; • maintaining a stable macroeconomic policy, providing everyone with equal opportunities, and strengthening the rule of law to make economic institutions more sustainable.
,7 2,3 2,2 3,3 3,8 2,8 3,5 development and laying the basis for sustainable economic growth.Over the past three years, Ukraine's total GDP growth amounted to 8.4%, which means that for 13 quarters of a row, the economy has been growing steadily in the context of a significant change in the political landscape, political turbulence, and this despite the fact that Ukraine annually sends more than 5% of GDP or 6 billion US dollars on security and defense in connection with the continuation of the actual war in the East.Thanks to the initiated systemic reforms in the economic block, the shadow economy has been reduced to 30% of GDP, which is 10 percentage points lower than in 2015.Inflation stalled at 8.8% in April 2019 with a steady increase in wages.The growth rate of average wages in the economy exceeds the rate of increase of the minimum wage, which indicates the existing opportunities in the economy to raise wages and is conditioned by the effort to maintain the labor potential in Ukraine.
In July 2019, in Toronto (Canada) at the international event "Innovation, Opportunities and Democracy in Ukraine," it was noted that, unlike the common perception, private shareholders, asset management companies, and real sector investors consider Ukraine as an attractive and predictable market, as it develops and hides large, qualitative, and measurable assets (Reports from the Ministry of Economic Development and Trade).The same position was expressed in January 2019 at the Ukraine House Davos and the Norwegian-Ukrainian Business Forum in Oslo on the availability of high-quality assets that are underestimated in the world market and this increase the attractiveness of Ukraine as an investment environment (UkraineInvest, 2019).
According to the data of central and local executive bodies in Ukraine, as of January 1, 2019, 189 contracts were concluded based on the PPP.
Areas of public-private partnership use are shown in Table 3.
In world practice, public-private partnerships are aimed at attracting private investments (both for their country and foreign ones) on long-term conditions for financing and management of public infrastructure.For Ukraine, there are three ways of implementing the investment projects -traditional state investment, public-private partnership and concessions (Zapatrina, 2016).Practice shows that according to the criterion of the level of PPP in Ukraine, both large national infrastructure projects and local level projects are being implemented.
Analyzing the strengths and weaknesses for the successful implementation of PPP projects in Ukraine (SWOT-analysis), as a strength it should be noted the advantageous geographical location and significant transit potential.
The implementation of public-private partnership projects allows for system investments in the transport, port, and Internet infrastructure of Ukraine.count the specific characteristics of the assets and capabilities of all partners involved in the project (Renda & Schrefler, 2005).In order to guarantee a correlation between price and quality, strengths and weaknesses, the shortcomings of each PPP scheme should be carefully analyzed.Depending on the economic sector, some PPP models are better suited than others in achieving targeted results and in providing accurate risk management.Choosing the wrong model or misjudging the risk management capabilities of each side can have very costly consequences.
Ukraine has signed a Memorandum with the International Finance Corporation (IFC) of the World Bank Group in order to improve the procedures and ensure the social responsibility of PPP participants in order to attract international experts and international experience to work on PPP projects.This document will provide expert support to consultants from the International Finance Corporation to start the work of the Agency for Public-Private Partnership Support in Ukraine (PPP Agency).The main functions of the Ukrainian Agency will be identification of PPP projects, preparation of feasibility studies for state partners, assistance in preparing competitive documentation, conducting trainings and conferences, etc.All this will contribute to the implementation of quality and investment-attractive projects in the transport, municipal, energy, social, and other fields that will be beneficial for investors, the economy and society of Ukraine (Reports from the Ministry of Economic Development and Trade).

CONCLUSION
According to the results of SWOT analysis of PPP projects in the infrastructure of Ukraine, this form of interaction is the best alternative to privatization in attracting private investment in the strategic infrastructure.Implementation of PPP projects requires a high level of state expertise and a responsible approach to project evaluation and control.The main criteria for determining the required PPP model are the distribution of investments, risks, obligations between the state and the private sector, the term and object of the transaction.
In the course of the study, it was determined that the formation of specifics of assignment of relations based on the interaction of forms of public and private property, as well as the involvement of business in all stages of the project and the long-term nature of cooperation, is the most important feature of PPP, which distinguishes it from other forms of interaction between the state and business.In addition, in the course of analysis of the peculiarities of development and the current state of public-private partnership in Ukraine, it was established that for the practical implementation of the main forms of PPP in order to attract private investment resources for the modernization of the Ukrainian economy, it is necessary to improve the legal framework and expand the law enforcement practice to initiate and manage the projects considering the contemporary crisis trends.

Figure 2 .
Figure 2. Regions, ranked by number of projects (1991-2019) (USD million) GDP (in % to the corresponding quarter of the previous year)

Table 1 .
Indexes of Ukraine in the World Corruption Perception Rating (Yurtayeva, 2018;Borovik, 2019)h (Table1) place out of 180 countries, which were explored, in the Corruption Perception Index of an international organization Transparency International(Yurtayeva, 2018;Borovik, 2019), progress in 10 places per year.

Table 2 .
Acquisition of capital investments in% in the ratio from January-March 2019 to January-March 2018 Source: State Statistics Service of Ukraine.Capital investments (∆117.

8%) From January-March 2019 to January-March 2018, %
Source: State Statistics Service of Ukraine.Real GDP, taking into account the seasonal factor (I quarter 2019 to IV quarter 2018) increased by 0.3%.Nominal GDP in I quarter 2019 -UAH 807.8 billion Figure 4. Changes in real GDP according to the State Statistics Service of Ukraine