MANAGEMENT OF PUBLIC-PRIVATE PARTNERSHIP IN SPORTS INFRASTRUCTURE: VULNERABILITIES

Abstract

Ukraine’s needs in sports infrastructure and limited fiscal space require effective management of state investments in order to stimulate economic development, provide quality services and stimulate economic activity. The implementation of infrastructure projects for the satisfaction of public services in the process of public-private partnership (hereinafter – PPP) is widespread in the world, because it shifts the emphasis of state dominance in the sphere of creation and distribution of services, increases the efficiency of the use of public funds due to competitive management, risk distribution and responsibility. PPP can serve as an effective solution for the creation (improvement, reconstruction) of sports infrastructure, in the absence of the possibility of financing such objects from the state budget. The main interest of the private sector in the implementation of sports infrastructure projects is mainly the use of such facilities, while the public sector (which often owns such facilities) is mostly concerned with the economics of maintaining the facilities and additional revenues to compensate for budget cuts. Therefore, in conditions of limited state resources, cooperation between the state and private partners can serve as the key to successful improvement of the sports infrastructure. The article examines the problematic issues of public-private partnership management in sports infrastructure, taking into account national and international experience. The positive and negative experience of PPP implementation in the field of sports is analyzed using the examples of Singapore, Great Britain, China, India, Lithuania and others, and ways of improving the management of such projects are summarized. Risks in PPP projects and their main carriers have been clarified, in particular, legal, political, operational, financial, environmental, market and other risks have been identified. Draft laws on improving PPP regulation in Ukraine were studied, and attention was also paid to problematic management issues. It was concluded that in order to create an effective partnership between the public and private sectors, it is important to have a strategic view on public investment priorities, a stable regulatory framework for PPPs, and clear selection criteria and opportunities for effective PPP management.