Using the mechanism of public-private partnership (PPP) is an effective way to attract investment for the modernization of urban infrastructure in the face of budget shortfalls, which is especially important for the sustainable development of the social infrastructure of the territories. The aim of the study is to analyze the models of public-private partnership (PPP) and substantiate the choice of the model to ensure sustainable development of the social sphere. The life-cycle cost (LLC) model is represented as the most effective one for realizing municipal facilities development projects.