DEVELOPMENT OF PUBLIC-PRIVATE PARTNERSHIP AS AN INSTRUMENT FOR THE POST-WAR RECOVERY OF UKRAINE’S TRANSPORT SYSTEM

Abstract

he article provides a comprehensive analysis of the problems of developing publicprivate partnership (PPP) in the transport sector of Ukraine’s recovery under martial law and in the
context of the state’s post-war reconstruction. The relevance of using PPP mechanisms as one of the key
instruments for attracting private capital to the reconstruction of transport infrastructure is substantiated,
given the limited financial capacity of the state budget and the need for rapid modernization of Ukraine’s
logistics system in accordance with European Union standards. The current state of the legal and
regulatory framework for public-private partnership is examined, in particular the provisions of the Law of
Ukraine «On Public-Private Partnership» [1], the Law of Ukraine «On Concession» [3], the Law of Ukraine
«On the Legal Regime of Martial Law» [4], and the National Transport Strategy of Ukraine until 2030 [2].
The main problems of PPP functioning in Ukraine’s transport sector are identified. It is established
that the key obstacles to the implementation of transport PPP projects are the high level of war-related
risks, instability of the investment environment, insufficient effectiveness of public administration,
imperfection of mechanisms for risk allocation between the state and the private partner, complexity of
concession procedures, low level of investor protection, and weak institutional capacity of public
authorities. The impact of hostilities on Ukraine’s transport infrastructure is analyzed, in particular on the
functioning of roads, the railway system, seaports, bridges, and logistics hubs. Special attention is paid to
the issue of war risk insurance and the need to create international guarantee mechanisms to attract
foreign investors to the reconstruction of strategic transport facilities. The study establishes that a
significant share of transport facilities requiring restoration are economically unattractive to private
business due to long payback periods and a high level of uncertainty. In this regard, the necessity of
combining private investment mechanisms with state support and international donor financing is
substantiated. The problems of implementing concessions in the transport sector are analyzed, in
particular the risks of political interference, corruption factors, the absence of stable judicial practice, and
insufficient transparency of tender procedures. Based on the analysis conducted, it is concluded that the
current model of PPP functioning in Ukraine requires systemic reform and adaptation to the conditions of
the wartime and post-war economy. The article proposes a set of practical measures to improve publicprivate partnership mechanisms in the transport sector. In the legal and regulatory sphere, the need to
harmonize Ukrainian legislation with European Union law, simplify procedures for preparing concession
projects, legally regulate mechanisms for compensation of war-related losses, and establish stabilization
guarantees for investors is substantiated. In the organizational sphere, the creation of a specialized state
agency for PPP issues in the transport sector, the digitalization of infrastructure project management
processes, and the introduction of an independent monitoring system for concession implementation are
proposed. In the financial sphere, the expediency of creating a state investment guarantee fund, using
availability payment mechanisms, and actively attracting resources from international financial
organizations for the co-financing of transport projects is substantiated. Particular attention is paid to
staffing support for transport PPP projects. The need to develop professional human resources in the
fields of infrastructure management, PPP administration, and transport planning is identified through the
creation of specialized educational programs and a system for improving the qualifications of civil
servants. In the political sphere, emphasis is placed on the importance of ensuring the stability of state
policy in the field of transport development, strengthening anti-corruption mechanisms, and guaranteeing
the transparency of state decisions in the area of infrastructure contracts. In the military sphere, the need
to integrate the security component into the transport planning system, create mechanisms for protecting
critical infrastructure, and form reserve logistics routes under conditions of armed aggression is
substantiated. It is concluded that the effective use of public-private partnership mechanisms in the
transport sector may become one of the key factors in Ukraine’s post-war economic recovery, the
modernization of transport infrastructure, and the integration of the state into the European transport area.
At the same time, the realization of this potential is possible only under the condition of comprehensive
improvement of legislation, strengthening of the state’s institutional capacity, and ensuring protection.