IMPLEMENTATION OF INNOVATIVE MECHANISMS IN PUBLIC-PRIVATE PARTNERSHIPS IN THE RAILWAY TRANSPORT SECTOR: A PUBLIC ADMINISTRATION PERSPECTIVE

Abstract

The article examines the theoretical, methodological, and applied foundations of
implementing innovative mechanisms in public-private partnerships (PPP) in the railway transport sector
through the lens of a public administration approach. It is substantiated that transformational processes in
the economy, increasing infrastructure needs, and limited budgetary resources necessitate a transition to
new models of interaction between the state and business, based on the principles of efficiency,
innovation, and long-term effectiveness. It is determined that PPP in railway transport serves not only as
a tool for attracting investment but also as an important mechanism for modernizing the system of public
infrastructure governance.
The paper analyzes contemporary scholarly approaches to understanding the essence of
innovative PPP mechanisms, including life-cycle contracts, blended finance instruments, project finance,
performance-based contracts, digital management platforms, and risk allocation tools. It is demonstrated
that the implementation of these mechanisms enhances resource efficiency, ensures transparency in
infrastructure project delivery, and reduces financial and operational risks.
Particular attention is paid to the public administration dimension of implementing innovative PPP
mechanisms, which involves transforming the role of the state from a direct operator to a strategic
regulator and coordinator of partnership relations. It is established that the key conditions for the effective
functioning of PPP in the railway sector include a well-developed legal and regulatory framework,
institutional capacity of public authorities, the introduction of modern digital management tools, and a
balanced distribution of risks among partners.
The main challenges in implementing PPP in the railway sector are outlined, including deficiencies
in legal support, institutional weakness, difficulties in aligning stakeholders’ interests, discrepancies
between expected and actual outcomes, and the impact of external factors, particularly wartime risks. The
necessity of comprehensive improvement of public administration mechanisms is substantiated through
the harmonization of legislation with European standards, the development of PPP institutional
infrastructure, the expansion of innovative financial instruments, and the digitalization of management
processes.
It is concluded that the implementation of innovative mechanisms in public-private partnerships in
the railway transport sector is an important direction for modernizing public administration, enabling
sustainable infrastructure development, enhancing its competitiveness, and integrating the national
transport system into the European space. At the same time, the lack of a systematic approach to
studying this issue from a public administration perspective necessitates further scientific research in this
field.