СИСТЕМА КОРПОРАТИВНОГО УПРАВЛІННЯ РОЗВИТКОМ ІНФРАСТРУКТУРНО-СЕРВІСНИХ ПІДПРИЄМСТВ

Abstract

The paper offers practical recommendations for improving the mechanisms of public-private partnership in the form of a concession. Within the scope of this study, a concession is viewed as a relationship framework in which to attain socially significant goals, the government or a municipal unit transfers to the concessionaire (natural or legal entity) the right to perform on a contractual basis some of its functions to possess, use, and under specific conditions, to dispose of public or municipal property. These relationships are valid during the concession agreement period. Guarantees to private investors in the area of PPP and infrastructure concessions have been adapted according to the current Ukrainian legislation. The concessionaire’s business guarantees include: prospects for ownership rights acquisition for property outside highway lanes; a possibility of resolving disputes in the International Arbitration Court, a possibility to launch a project company for specific project realization (a special purpose vehicle, SPV. It is argued that providing guarantees for concessionaire investment returns is paramount. The above guarantees should cover a restraint on concessionaire’s property and assets forced alienation; the principle of non-interference in the concessionaire’s business; guarantees of reimbursement by the grantor of all investments made by the concessionaire (in case of contract termination due to the grantor’s fault); envisaged norm according to which the fare is fixed at an investment-based rate that ensures compensation of the concessionaire’s expenses. The implementation of concession relationships pattern in the transport infrastructure of Ukraine has contributed to outlining the key prospects for its development and enhancement, in particular through compliance with the following principles: application of legislation in force at the time of concluding a concession agreement; imposing a legislative ban on changes related to running concession business; guarantees of concessionaire’s loss coverage caused by government authorities’ decisions that breach the concessionaires’ rights.