The Public-Private Partnership

The Public-Private Partnership (PPP) is a contractual agreement between a public agency and a private entity. According to such agreement, the skills and assets of each sector (public and private) are shared in the delivery of a service or facility to the benefit of the public. Beside sharing resources, each party shares the potential risks and benefits in delivering services and/or facilities.

 

PPP principles in the Republic of Moldova:

 

•Equality in treating and choosing partners, objectivity and non-discrimination;

•Transparency;

•Balance;

•Provision of compensations;

•Cooperation;

•Contractual freedoms.

 

Goals of the Public-Private Partnership:

 

•Joint accountability in developing the infrastructure; 

•Lease of objects of national interest for a maximum period of 50 years;

•Accumulation of sources of capital;

•Attraction of foreign and local investments;

•Creation of fair competition on the market of products and services.

 

The PPP priorities by sectors:

 

•Energy:

- develop the energy sector using traditional and alternative sources 

 

•Transportation:

- rehabilitate the roads and their maintenance 

- public transportation

 

•Business infrastructure:

- industrial pools

 

•Municipal utilities:

- constructions

- modernization of water pipes and sewerage networks 

 

•IT

 

•Agricultural sector

 

•Financial-banking sector