Abstract. The relevance of the research topic is determined by the need for improvement and further development of methodological approaches to the management of project portfolios, in terms of the formation of the latter based on the issues of public participation project management. The subject of the research is the methods, models, mechanisms and standards of project portfolio formation, considered in the context of public participation project portfolio formation. The object of research is the process of managing public participation projects. Research methodology. The research was conducted according to the practice of managing public participation projects in the territorial communities of cities - regional centers - of Ukraine, as well as the city of Kyiv in 2016–2021. The method of scientific identification and comparative analysis was used in the formation of the conceptual basis of the research, as well as in the analysis of scientific works; when developing the concept of forming a portfolio of public participation projects - abstract-logical method, case method; with the development of models for determining the optimal composition of the portfolio of public participation projects - the method of integer programming, methods of evaluating the effectiveness of investment projects, the concept of the value of money over time. Keywords: project management, project portfolio, management of project portfolios, portfolio-oriented management, public participation projects, public project, public budget.