Ministry of Finance

of the Republic of Bulgaria

Public-private partnership

Public-private partnership (PPP) is a leading tool for realization of infrastructure projects worldwide. The need for modern public infrastructure as an engine of economic development and the limited budget resources for its construction and maintenance are the main drivers for the emergence and spread of this form of cooperation between public authorities and the private sector. The main features and benefits of public-private partnership are:
- Long-term contract between a public and a private partner for the provision of services of public interest, based on new or improved assets;
- The private partner is involved in all stages of the project - design, construction, financing, maintenance and / or operation of the facility;
- Public authorities define objectives, requirements for quality and quantity and control implementation;
- The private partner provides all or the majority of the project's funding;
- Equitable distribution of risks between the partners on the basis of who can better deal with them;
- The mechanism of payment of the public sector is linked to performance indicators;
- Improved management of the site and the quality of services;
- Better value for money.
In June 2012 the National Assembly of the Republic of Bulgaria adopted the Public-Private Partnership Act (SG, No. 45 of 2012, effective as of 01/01/2013). The main objectives of the Act are:
- to ensure the development of high-quality and accessible services of general interest by means of obtaining better value for money from invested public funds;
- to create prerequisites for the promotion of private investments in the construction, maintenance and management of physical and social infrastructure facilities and the carrying out of activities of general interest;
- to create guarantees for protection of public assets and for effective management of public funds upon the implementation of PPP;
- the principles of publicity, transparency, free and fair competition, non-discrimination, equality and proportionality shall be respected upon implementation of PPP.
To promote PPP, Ministry of Finance developed methodological guidelines, manuals, financial models and other materials to assist central and local authorities in the implementation of PPP projects.

The Real Sector Finance within the Ministry of Finance serves as a specialized unit for PPP in Bulgaria. Its main functions include:
1. Participation in the development of draft laws and draft regulations, PPP programs and plans, methodologies, guidelines, financial models, financial and economic analysis and model contracts in PPP in accordance with best European and international practice and with a view to more effective and more efficient spending of public funds;
2. Methodological support of central and local authorities in the development and structuring of investment projects through PPP;
3. Participate in the preparation and finalization of the state budget for the year in relation to the programming of the availability payments and compensation payments in PPP projects;
4. Analyzes the financial and economic analyses of proposed PPP projects;
5. Represents the Ministry in the European PPP Expertise Centre (EPEC) and in the Team of Specialists on PPP under the UNECE;
6. Represents the Ministry in the concession procedures and control of concession contracts.

Documents of European and international institutions and organizations in the area of public private partnership