Concession in the port industry as a form of public-private partnership
DOI:
https://doi.org/10.34132/pard2021.11.11Keywords:
seaport, port industry, port infrastructure, public-private partnership, investments, concession, concession risksAbstract
The article shows that a concession is a grant to meet public needs by an authorized executive body or local government body on the basis of a concession agreement on a paid and term basis to a legal or natural person (business entity) the right to create (build) and ( or) management (operation) of the concession object (term paid possession), provided that the business entity (concessionaire) undertakes obligations to create (build) and (or) manage (operate) the concession object, property liability and possible business risk; it is determined that the concession is one of the effective tools for upgrading the port infrastructure; the main organizational types of concessions are considered, the advantages of concessions in seaports are determined; international experience has been analyzed, which has shown that the involvement of private entities both in the direct implementation of economic activities and in the creation and modernization of seaport infrastructure greatly increases the profitability of the latter; based on the analysis of world experience, the factors that should be taken into account when determining the term of the concession and the amount of payments are also determined; it is established that the concession, as well as any investment project, is accompanied by a significant group of risks that may affect its profitability and efficiency. The example of the transfer of the Kherson Sea Commercial Port to the concession shows that the transfer of the port by the state to the concession will allow to fully use its potential and, ultimately, to restore port facilities that have been in decline for many years, as well as significantly improve the city's infrastructure. One of the main advantages of the concession is that the objects of the enterprises in which the concessionaire invests remain the property of the state. At the same time, concession payments to the budget come independently of the results of its commercial activities
References
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17. Zakon Ukrainy Pro kontsesiyu vid 03 zhovtnya 2019 roku No 155-IKH [Law of Ukraine On the concession of October 3, 2019 No 155-IX]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/155-20#n646 [in Ukrainian].
18. Zakon Ukrainy Pro morski porty vid 17 travnya 2012 roku No 4709-VI [Law of Ukraine On seaports of May 17, 2012 No 4709-VI]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/4709-17#Text [in Ukrainian].
19. Zakon Ukrainy Pro orendu zemli vid 06 zhovtnya 1998 roku No 161-KHIV [Law of Ukraine On land lease of October 6, 1998 No 161-XIV]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/161-14#Text [in Ukrainian].
20. Stolyarchuk, N.V. (2020). Kontsesiya yak forma investuvannya diyalʹnosti rehionalʹnykh aeroportiv Ukrayiny [Concession as a form of investing in the activities of regional airports of Ukraine]. Naukovyy visnyk Lotnoyi akademiyi. Seriya : Ekonomika, menedzhment ta pravo – Scientific Bulletin of the Flight Academy. Series: Economics, Management and Law, 2, (pp. 113-120). Retrieved from http://nbuv.gov.ua/UJRN/sbfaseml_2020_2_15 [in Ukrainian].
21. Studenets, I.S. (2019). Osoblyvosti strakhuvannya v kontsesiyakh [Features of insurance in concessions]. Molodyy vchenyy – Young scientist, 2 (2), (pp. 590-595). Retrieved from http://nbuv.gov.ua/UJRN/molv_2019_2(2)__63 [in Ukrainian].
22. Titarchuk, M.I. (2018). Kontsesiya yak forma realizatsiyi derzhavno-pryvatnoho partnerstva yak obʺyekta ekonomichnoho analiz [Concession as a form of realization of public-private partnership as an object of economic analysis]. Ekonomichnyy prostir – Economic space, 139, (pp. 199-212). Retrieved from http://nbuv.gov.ua/UJRN/ecpros_2018_139_18 [in Ukrainian].
23. Yaroshenko, L.L. (2016). Kontsesiya yak sposib rozvytku transportno-lohistychnoyi infrastruktury v Ukrayini [Concession as a way of development of transport and logistics infrastructure in Ukraine]. Molodyy vchenyy – Young scientist, 12.1., (pp. 1041-1044). Retrieved from http://nbuv.gov.ua/UJRN/molv_2016_12 [in Ukrainian].
24. Trojillo, L. & Nombela, G. Privatization and regulation of the seaport industry. info.worldank.org. Retrieved from info.worldank.org/etools/docs/library/64583/2181 seaport.pdf [in English].
25. Yemelianov, V.M. (2012). Rozvytok partnerskykh vidnosyn biznesu i vlady v systemi derzhavnoho upravlinnia stalym rozvytkom Ukrainy: teoriia, metodolohiia, praktyka [Development of business-government partnerships in the system of public administration for sustainable development of Ukraine: theory, methodology, practice]. Mykolaiv : PP Yemelianova T. V. [in Ukrainian].
2. Zakon Ukrayiny Hospodarsʹkyy kodeks Ukrayiny vid 16 sichnya 2003 roku No 436-IV [Law of Ukraine Commercial Code of Ukraine of January 16, 2003 No 436-IV]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/436-15#Text [in Ukrainian].
3. Dyba, M.I. (2016). Kontsesiya: sutnistʹ ta formy finansovoho zabezpechennya [Concession: essence and forms of financial support]. Finansy Ukrayiny – Finance of Ukraine, 10, (pp. 65-76). Retrieved from http://nbuv.gov.ua/UJRN/Fu_2016_10_5 [in Ukrainian].
4. DP «Khersonsʹkyy morsʹkyy torhovelʹnyy port» peredano u kontsesiyu [SC "Kherson Sea Commercial Port" was transferred to the concession]. seaport.kherson.ua. Retrieved from https://seaport.kherson.ua/news/dp-khersonskyi-morskyi-torhovelnyi-port-peredano-u-kontsesiiu/ [in Ukrainian].
5. Kovbasyuk, Yu.V., Amosov, O.Yu., Ihnatenko, O.S. & Kuznetsov, A.O. (2011). Entsyklopediya derzhavnoho upravlinnya: u 8 t. [Encyclopedia of Public Administration: in 8 volumes]. (Vols. 5). KH.: Vyd-vo KharRI NADU «Mahistr» [in Ukrainian].
6. Zyatina, D.V. (2015). Kontsesiya v morsʹkykh portakh – investytsiyni ryzyky ta shlyakhy yikh zmenshennya [Concession in seaports - investment risks and ways to reduce them]. Mytna sprava – Customs, 1(2.2), (pp. 198-204). Retrieved from http://nbuv.gov.ua/UJRN/Ms_2015_1(2 [in Ukrainian].
7. Kyrtoka, M.P. (2016). Deyaki problemy vyznachennya ponyattya «kontsesiya» (orhanizatsiyno-pravovyy aspekt) [Some problems of defining the concept of "concession" (organizational and legal aspect)]. Teoretychni ta prykladni pytannya derzhavotvorennya – Theoretical and applied issues of state formation, 19, (pp. 10-20). Retrieved from http://nbuv.gov.ua/UJRN/tppd_2016_19_3 [in Ukrainian].
8. Kovalchuk, V.V. Kontsesiya yak forma realizatsiyi proektiv derzhavno-pryvatnoho partnerstva: zahalʹna kharakterystyka obʺyekta bukhhaltersʹkoho obliku [Concession as a form of realization of public-private partnership projects: general characteristics of the object of accounting]. Visnyk Zhytomyrsʹkoho derzhavnoho tekhnolohichnoho universytetu. Seriya : Ekonomika, upravlinnya ta administruvannya – Bulletin of Zhytomyr State Technological University. Series: Economics, Management and Administration, 1, (pp. 83-91). Retrieved from http://nbuv.gov.ua/UJRN/Vzhdtu_econ_2019_1_15 [in Ukrainian].
9. Krushynska, A.V. (2018). Kontsesiya yak forma stymulyuvannya investytsiy v turystychnu sferu [Concession as a form of investment incentives in the tourism sector]. Universytet•sʹki naukovi zapysky – University scientific notes, 3-4, (pp. 357-367). Retrieved from http://nbuv.gov.ua/UJRN/Unzap_2018_3-4_34 [in Ukrainian].
10. Merylo, Y. (2020). Navishcho Ukrayini kontsesiya. Pershyy v krayini obʺyekt peredaly v kontsesiyu. Chomu tse vyhidno dlya vsikh storin? [Why Ukraine concession. The first facility in the country was transferred to concession. Why is it beneficial for all parties?]. Ekonomichna pravda – Economic Truth, July. Retrieved from https://www.epravda.com.ua/columns/2020/07/7/662621/ [in Ukrainian].
11. Shevchenko, L.I., Nika, O.I., Khomyak, O.I. & Demyanyuk A.A. (2008). Novyy slovnyk inshomovnykh sliv [New dictionary of foreign words]. Kyiv: ARIY [in Ukrainian].
12. Pyroh, O.V. Protsyk, I.S. & Tomych, M.I. (2019). Kontsesiya yak perspektyvna forma derzhavno-pryvatnoho partnerstva: perevahy ta nedoliky [Concession as a promising form of public-private partnership: advantages and disadvantages]. Molodyy vchenyy – Young scientist, 2, (2), (pp. 641-646). Retrieved from http://nbuv.gov.ua/UJRN/molv_2019_2(2)__73 [in Ukrainian].
13. Podolyan, YU.O. (2020). Kontsesiya yak forma derzhavno-pryvatnoho partnerstva: analiz chynnoho zakonodavstva [Concession as a form of public-private partnership: analysis of current legislation]. Dictum factum, 1, (pp. 58-67). Retrieved from http://nbuv.gov.ua/UJRN/dicf_2020_1_11 [in Ukrainian].
14. Zakon Ukrainy Pro derzhavno-pryvatne partnerstvo vid 01 lypnya 2010 roku No 2404-VI [Law of Ukraine On public-private partnership of July 1, 2010 No 2404-VI]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/2404-17#Text [in Ukrainian].
15. Postanova Kabinetu Ministriv Ukrayiny Pro zatverdzhennya metodyky rozrakhunku kontsesiynykh platezhiv vid 12 serpnya 2020 roku No 706 [Resolution of the Cabinet of Ministers of Ukraine On approval of the methodology for calculating concession payments of August 12, 2020 No 706]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/706-2020-%D0%BF#Text [in Ukrainian].
16. Zakon Ukrainy Pro kontsesiyi vid 16 lypnya 1999 roku No 997-XIV [Law of Ukraine On Concessions of July 16, 1999 No 997-XIV]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/997-14#Text (vtratyv chynnist 03.10.2019) [in Ukrainian].
17. Zakon Ukrainy Pro kontsesiyu vid 03 zhovtnya 2019 roku No 155-IKH [Law of Ukraine On the concession of October 3, 2019 No 155-IX]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/155-20#n646 [in Ukrainian].
18. Zakon Ukrainy Pro morski porty vid 17 travnya 2012 roku No 4709-VI [Law of Ukraine On seaports of May 17, 2012 No 4709-VI]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/4709-17#Text [in Ukrainian].
19. Zakon Ukrainy Pro orendu zemli vid 06 zhovtnya 1998 roku No 161-KHIV [Law of Ukraine On land lease of October 6, 1998 No 161-XIV]. zakon.rada.gov.ua. Retrieved from https://zakon.rada.gov.ua/laws/show/161-14#Text [in Ukrainian].
20. Stolyarchuk, N.V. (2020). Kontsesiya yak forma investuvannya diyalʹnosti rehionalʹnykh aeroportiv Ukrayiny [Concession as a form of investing in the activities of regional airports of Ukraine]. Naukovyy visnyk Lotnoyi akademiyi. Seriya : Ekonomika, menedzhment ta pravo – Scientific Bulletin of the Flight Academy. Series: Economics, Management and Law, 2, (pp. 113-120). Retrieved from http://nbuv.gov.ua/UJRN/sbfaseml_2020_2_15 [in Ukrainian].
21. Studenets, I.S. (2019). Osoblyvosti strakhuvannya v kontsesiyakh [Features of insurance in concessions]. Molodyy vchenyy – Young scientist, 2 (2), (pp. 590-595). Retrieved from http://nbuv.gov.ua/UJRN/molv_2019_2(2)__63 [in Ukrainian].
22. Titarchuk, M.I. (2018). Kontsesiya yak forma realizatsiyi derzhavno-pryvatnoho partnerstva yak obʺyekta ekonomichnoho analiz [Concession as a form of realization of public-private partnership as an object of economic analysis]. Ekonomichnyy prostir – Economic space, 139, (pp. 199-212). Retrieved from http://nbuv.gov.ua/UJRN/ecpros_2018_139_18 [in Ukrainian].
23. Yaroshenko, L.L. (2016). Kontsesiya yak sposib rozvytku transportno-lohistychnoyi infrastruktury v Ukrayini [Concession as a way of development of transport and logistics infrastructure in Ukraine]. Molodyy vchenyy – Young scientist, 12.1., (pp. 1041-1044). Retrieved from http://nbuv.gov.ua/UJRN/molv_2016_12 [in Ukrainian].
24. Trojillo, L. & Nombela, G. Privatization and regulation of the seaport industry. info.worldank.org. Retrieved from info.worldank.org/etools/docs/library/64583/2181 seaport.pdf [in English].
25. Yemelianov, V.M. (2012). Rozvytok partnerskykh vidnosyn biznesu i vlady v systemi derzhavnoho upravlinnia stalym rozvytkom Ukrainy: teoriia, metodolohiia, praktyka [Development of business-government partnerships in the system of public administration for sustainable development of Ukraine: theory, methodology, practice]. Mykolaiv : PP Yemelianova T. V. [in Ukrainian].
Published
2021-03-31
How to Cite
Lopushynskyi, I., & Yemelyanov, V. (2021). Concession in the port industry as a form of public-private partnership. Public Administration and Regional Development, (11), 232–250. https://doi.org/10.34132/pard2021.11.11
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