STATE SUPPORT AS A TOOL FOR DEVELOPING PUBLIC-PRIVATE PARTNERSHIPS IN UKRAINE’S INFRASTRUCTURE IN THE CONTEXT OF POST-WAR RECONSTRUCTION

Abstract

This article examines the role of state support as a key tool for developing public-private
partnerships in Ukraine’s infrastructure sector during the post-war reconstruction period. The relevance of
this topic is substantiated by the extensive destruction of infrastructure facilities and the limited public
financial resources, which necessitates the active involvement of the private sector. The current state of
scientific research in the field of public-private partnerships is analyzed, identifying the insufficient level of
understanding of the effectiveness of state support forms, particularly state guarantees, compensation
and co-financing.
The article explores the essence of public-private partnerships as a public governance tool and
defines their importance for the restoration of transport, energy, social and digital infrastructure. The main
forms of state support for public-private partnerships are systematized in accordance with current
Ukrainian legislation and their functional purpose is defined, specifically, reducing investment risks,
increasing the financial attractiveness of projects and ensuring the implementation of socially significant
initiatives.
Particular attention is paid to analyzing the benefits and risks of using state support instruments,
including fiscal constraints, the possibility of contingent liabilities and moral hazard. Key challenges in the
practical implementation of public-private partnerships in Ukraine are identified, including the insufficient
institutional capacity of government authorities, the complexity of procedures, limited resources and
imperfect performance evaluation mechanisms. From a public governance perspective, the effectiveness
of state support is determined not only by the diversity of its instruments but also by the quality of
management processes. A preliminary assessment of the feasibility of project implementation is crucial,
particularly through comparison with alternative forms of public procurement. Equally important is
ensuring effective risk allocation in accordance with the principle of transferring risks to the party best
positioned to manage them. It is also necessary to implement effective mechanisms for monitoring the
fulfillment of contractual obligations and the achievement of planned results, as well as guaranteeing
transparency and accountability, particularly with regard to long-term budgetary commitments.
It is substantiated that the effectiveness of state support largely depends on the quality of
management decisions, the transparency of procedures, appropriate risk allocation and the
implementation of a performance monitoring system. Areas for improving state support mechanisms for
public-private partnerships in the context of post-war reconstruction are proposed, specifically
strengthening institutional capacity, harmonizing legislation with European standards and implementing
modern approaches to infrastructure project management.