EFFICIENCY OF PPP IMPLEMENTATION IN BOSNIA AND HERZEGOVINA

Abstract

Bosnia and Herzegovina is among the countries whose social and economic development needs greatly exceed financial capacities of the public sector. Implementation and financing of capital projects of public importance such as: highways and road infrastructure (bridges, tunnels), railway lines, ports, airports, gas pipelines, refineries, power generation plants, social and municipal infrastructure (hospitals, schools, prisons, water supply network, waste disposal) often lead to significant fiscal constraints. Financing investments in the context of limited budget capacities requires a new approach and strategy. In a situation where public sector in Bosnia and Herzegovina does not have enough resources necessary for the efficient implementation of capital projects, there is a need for engaging private capital. Public-private partnership, although a relatively new form of financing, opens significantly more opportunities for financing development, providing public services and meeting citizen’s needs, which will be the subject of this paper.