THE IMPORTANCE OF IMPLEMENTING GOOD GOVERNANCE PRINCIPLES IN PUBLIC-PRIVATE PARTNERSHIPS IN SERBIA

Abstract

The interaction and influence of public-private partnership projects (PPPs) on sustainable development in Serbia is largely neglected. Currently, there are no policies in place that even tackle the possibility of including sustainability considerations in any phase of the PPPs implementation. Implementing good governance principles in PPPs can bring a wide range of benefits for the country. Good governance ensures efficient and timely execution of PPP projects, leading to the development of critical infrastructure such as roads, bridges, energy facilities, and healthcare facilities. This, in turn, contributes to economic growth and improved quality of life for the citizens. Transparent and accountable governance practices are also crucial for making Serbia a more attractive destination for foreign investors. Successful PPP projects generate employment opportunities, both directly through construction and operation phases and indirectly through associated industries. This contributes to economic growth and helps alleviate unemployment concerns. If well-designed indicators are included in any phase of the PPP cycle (e.g. in the procurement processes, through project specifications and award criteria), it can lead to greater efficiency and sustainability of the infrastructure projects, or provision of public services. On the other hand, by failing to incorporate economic, environmental, and social implications right from the beginning, public authorities can miss a unique opportunity to significantly reduce the whole life cycle costs of the PPPs projects. By developing sustainable development indicators and detecting which specific governance instruments and incentives can be implemented within PPP projects, the sustainability of public infrastructure and services delivered through PPPs in Serbia will be enhanced. In conclusion, the implementation of good governance principles in PPPs in Serbia not only ensures the successful execution of infrastructure projects but also brings about positive economic, social, and environmental impacts, positioning the country as an attractive destination for investments and collaboration.