THE ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS IN THE DEVELOPMENT OF PUBLIC-PRIVATE PARTNERSHIP: WORLD EXPERIENCE AND LESSONS FOR UKRAINE

Abstract

Ukraine’s wartime and prospective post-war reconstruction has drastically widened the gap between infrastructure needs and domestic fiscal capacity, significantly increasing the importance of mobilizing private capital. This article examines the role of international financial institutions (IFIs) in shaping a resilient environment for public-private partnerships (PPPs) and the adaptability of relevant instruments to Ukraine under conditions of ongoing war and post-war economic reconstruction. Based on a structured comparative analysis of scientific publications, legislation and official documents of the World Bank Group, IFC, MIGA, EBRD, EIB and IMF, the study systematizes the main channels through which IFIs influence PPPs: co-financing and private-capital mobilization, guarantees against political and financial risks, project preparation and institutional capacity-building, support for regulatory reforms, and environmental and social standards. The analysis distinguishes instruments of development banks and guarantee institutions that directly create conditions for PPP implementation from the indirect macroeconomic influence of the IMF. To contextualize global practices, the paper analyzes diverse international PPP models: the British Private Finance Initiative experience; Latin American and Asian practices emphasizing institutional capacity, project preparation facilities, and blended finance mechanisms; Australia’s risk allocation standards; and Poland’s integration of EU structural funds with PPP structures.The main analytical contribution of the research is a matrix linking Ukraine’s key PPP development barriers (lack of institutional competency, regulatory uncertainty, commercial viability gap, fragmentation of donor funds, war/political risks, and macroeconomic instability) with relevant IFI functions, specific financial and advisory instruments and expected mechanisms of influence. The analysis suggests that financing volume alone is not sufficient for PPP implementation without adequate project preparation, a predictable regulatory environment, mechanisms for allocating war-related risks and macrofinancial stability.