No abstract

This paper deals with an issue of how to evaluate the possibilities provided by the public-private partnership (PPP) to optimize investments in public infrastructure. Literature analysis discloses this process being complex in nature. Value for money (VfM) assessment is acknowledged as the main decision-supporting tool to assess whether to implement investment project (IP) as a PPP. However, due to its multifaceted nature, this process is challenging and demanding, while results can be very different depending on the approach and assumptions applied, which, in turn, also causes criticism on very PPP. To get reliable results, the rational public sector's comparator (PSC) model and the financially viable and affordable PPP model should be constructed as well as their rational comparison should be done. To satisfy these requirements, there is a need of rational comparative tools presenting complex approach to the VfM assessment. Accordingly, the main objective of the research was to create an integrated complex model of evaluating the possibilities provided by the PPP to optimize investments in public infrastructure as well as to assess its suitability to be used in solving issues related to this assessment. Theoretical background of the research was based on the scientific literature analysis, synthesis, comparison and generalization, while the model was created by using methods of statistical analysis, financial analysis and modeling and logical analysis. The model consists of five stages: 1) preparation of the initial IP; 2) selection of IP for the assessment of PPP; 3) PPP structuring and feasibility analysis; 4) VfM assessment of actual bids, and; 5) VfM monitoring, which includes ex-ante, actual and ex-post assessment. The model was assessed in the hypothetical case study, where its suitability to be used in solving the issues related to the assessment of PPP's possibilities to optimize investments in public infrastructure in both economic and social-based PPPs have been demonstrated. The results obtained allow arguing it as enabling to make reasoned decisions for the most efficient ways of IP implementation.

This paper presents the main guidelines for the formation of optimal capital structure in a publicprivate partnership (P3). The relevance of guidelines determines the growing number of investment projects carried out by various publicprivate hybrids, which, due to unique conditions of every project, usually cope with such problems as the formation of optimal capital structure and sharing of risk between shareholders. Due to this reasons, the purpose of the paper is to form a procedural model enabling to optimize capital structure of P3. The research methodology is based on the review of scientific literature as well as, the analysis and synthesis of analyzed problems and possible solutions. The created model enables to evaluate the requirement for private sector's involvement in the delivery of public services, to select the rational basis of P3 and its form, to determine the optimal structure of public and private investment and by optimizing capital structure of private partner to evaluate financial viability of P3.

This article presents the results of the empirical research performed in Lithuanian grand electricity companies in order to reveal the application of performance measurement systems (PMSs) at the electricity sector. The relevance of the performance measurement at the electricity sector is determined by starting the process of gradual electricity market liberalization which changes performance conditions of companies operating in this sector. Scientific literature within the context of the analysis of such processes impact on the performance measurement and PMS in this sector is poor and fragmentary. This paper is the first one in which it is analyzed the performance measurement in Lithuanian electricity companies. Theoretical background of the research is based on the assumptions that the changing environment of an organizational the performance has a direct impact on the changes of performance measurement which, in its turn, are realized in close connection with the projects on re

The article deals with the issue of how to accurately assess the Risk (risk of cost overrun) in PIPs (public investment projects). Problematic and, as a result, rare application of quantitative risk assessment tools in the public sector determines the relevance of systemization and facilitation of techniques, which would allow increasing accuracy of Risk assessment as well as efficiency and transparency of public finance management. The purpose of this article is to analyze the peculiarities of Risk in PIPs and to find the PDs (probability distributions) that best enable to assess the Risk in PIPs more specifically. Summarizing the scientific literature, it was revealed that, due to a complex of problems, risk assessment based on historical data gives place to the qualitative tools such as personal expertise, which is prevailing in practice. However, under the circumstances analyzed in the article, the application of historical data allows getting more accurate results, and the public sector, despite the lack of experience in comparison with the private one, has more advantages in this case. The performed case study enabled to present a methodology of how to systemize data for the assessment of Risk in PIPs. The peculiarities of Risk were analyzed in groups (PIP groups), their classification was based on PIP accounting plan of long-term assets in Lithuania. The findings of the article showed the difficulties of the public sector to ensure sufficient financing as well as the problems to manage Risk in PIPs. The case study disclosed the inability of the so called "traditional" PDs to accurately describe this tendency of success of the public sector to implement PIP within the estimated budget, while the Loglogistics and its parameters were tested as the most suitable PD to assess the Risk not in a general case, but also in different PIP groups.