On March 30, 2012 the Order of the Ministry of Economic Development and Trade of Ukraine No. 255 "Some problems of conducting the analysis of the effectiveness of public-private partnership implementation" came into force.
The Order approves the feasibility study form for public private partnership implementation (hereinafter the PPP), as well as the methodology for analyzing the effectiveness of PPP, which determines the basic parameters and indicators of the effectiveness of PPP. The analysis of PPP implementation shall be conducted in stages specified in the procedure approved by the Resolution of the Cabinet of Ministers of Ukraine as of April 11, 2011 No. 384.
The Order approves the comparative table on the effectiveness of achieving the goal of PPP with the involvement of a private partner or without it. Thus, when evaluating the financial performance of investment the cash flow, which is formed in the process of PPP implementation, shall be compared with the initial investment amount. PPP is deemed effective if it provides for the return of the original investment amount and the required profit for the investors.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
