Summary 

The modern innovative economy is characterized by new forms of business and state relations. One of them is the - Public Private Partnerships (PPP), whose primary objective is to increase the extent of private investments in various measures implemented by the state that serve the growth of the social status of the population and living standards and generally, economic sustainability of the country. Developed countries unanimously agree that introduction  and development of public-private partnership is one of the new, innovative ways of improving the economic growth, infrastructure development and   supply of society with services in the countries.

This form of partnership is the cooperation to implement the priority objectives of economic development, through the distribution of costs and risks between each other using long-term and voluntary principles. According to the world experience, the introduction of the PPP innovative model allows the expenditure optimization in a particular field and development in accordance with the real needs and sustainability.

We would like to emphasize that this model of partnership is surely and only based on voluntary principle and in addition to the two main participants, the non-profit sector– this or that foundation acting in the field of education, healthcare, cultural affairs, public movement,   social movement etc. is the most important partner. The following areas are considered as "PPP" priorities: health care social services; Science and education; Innovative infrastructure; Production and transportation infrastructure; Public utilities.

Public-private partnership projects are widely used in EU countries where the total value of these projects in 2014 amounted to 18.7 trillion Euros. In sectoral context transport projects are the leader. For the projects implemented in the sphere of transport in 2015 60% of all PPP projects value was spent, followed by healthcare and education. For example, the construction of such giant projects in the European Union, such as the Metropolitan Line in Italy (In Milan), moto way in Belgium, the Netherlands, Germany, University Clinic in Germany and other, and the most famous project is the construction of a railway tunnel under the La Manche.

Generally, PPP is used worldwide in more than 100 countries In 2015 according to PPP’s project value, the leader was Turkey (9.2 billion Euro), while by the completed projects of this year first place occupies the United Kingdom (15 projects). In Spain in the last 10 years based on “GPSU” principles the whole transport infrastructure has been reconstructed. In China more than half of infrastructural objects intended for the 2008 Olympic Games was implemented on the basis of the of PPP’s mechanism.

Practice accumulated in the development of the PPP model in the world shows that it is essential to create a legal environment in which the main principles, procedures and conditions of the public-private partnership are considered. An interesting example of this is France, where the special law "PPP Law" was created in 2008 to effectively implement PPP projects that are fully adapted to the principles of public-private partnership and the obligations, risks and responsibilities of the parties involved in the process are detailed as well as the tender procedures, procedures of project implementation.

The success of the PPP projects successfully implemented worldwide, has made the developing countries to introduce the PPP model. Among these countries is Georgia, where the PPP Center is functioning for several years. It is the initiative organization, the main mission of which is promoting the cooperation between public and private sector in Georgia and in this terms the study of the situation in the country.

At the initiative of the PPP Center, on December 7-8, 2013, a conference dedicated to the public-private partnership model was held at the initiative of the Ministry of Economy and Sustainable Development of Georgia and the World Bank in Kobuleti. The PPP financial mechanisms, legal and institutional forms of partnership development were discussed at the conference.

It was also noted that the projects implemented by the PPP model provide a long-term, approximately 25-30 year action plan, where resources are allocated between private and public sector to implement design, construction, financing and management.

The European Bank for Reconstruction and Development (EBRD) is helping the Georgian side to implement a public-private partnership model and successfully implement projects from 2015. The technical support for development of the legal basis of the regulatory framework of the Partnership is outlined and the document on the legislation and practices of the PPP model has been developed. However, despite the PPP Center data, there is no legislation in the country where the public-private partnership model and the relevant institutional and legal environment will be directly covered. There does not exist unified database of PPP projects implemented in the country where it will be possible to find detailed information about the projects.

There is no doubt that the state-private partnership is an integral part of the modern economy, one of the effective ways and direction of sustainable development of the country economy is the formation of its positions and positive image on the world market. Taking into account all this, we consider that it is especially important for a country like Georgia where the main problem for many countries with transition economies is that this method is new even for advanced countries, and therefore there is no relevant experience of the results of its implementation and the assessment of potential social-economic and legal results. However, it is already clear that this method is very effective for countries like Georgia, which, is still at a lower level in economic development, but is aimed at sustainable growth of its economy.