《feasibility study of ppp》.pdf

InTernaTIonal JoUrnal of STraTeGIC ProPerTy ManaGeMenT ISSn 1648-715X print / ISSn 1648-9179 online 2011 Volume 15(3): 257–274 doi:10.3846/1648715X.2011.617860 feasibility study of public- priVate partnership ieva meidutė 1 and narimantas Kazimieras paliulis 2 1 Department of Business Technology Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, Lithuania E-mail: ieva.meidute@vgtu.lt 2 Department of Business Technology Management, Vilnius Gediminas Technical University, Saulėtekio al. 11, LT-10223 Vilnius, Lithuania E-mail: paliulis@vgtu.lt received 11 april 2011; accepted 3 June 2011 abstract. Public- private partnership may cover various forms of partnership, viz. as the property of the private sector in the state of municipal activities or information and consulta- tions between the public and private sectors, also as an unconventional method of public pro- curement when the public and private sectors enter into a long-term contract on the establish- ment of public infrastructure or the provision of public services. The most important thing in implementing PPP projects is to properly draw up the contract between the public and private partners, which should explicitly state all terms and conditions, undertakings and liabilities, evaluate risks, determine the payment mechanism and dispute settlement procedure, etc. In order to reduce any risk associated with such projects, a proper legal framework should be developed, which would provide liabilities and undertakings of both parties of the project (the private and public sectors), and more information should be disbursed as to how such projects are bei