PPP Model Opportunities, Limitations and Risks in Croatian Public Project Financing

In recent years, the need for development of infrastructure and public facilities, as a significant factor of economic growth has equally increased in developing and developed countries. Government budgetary allowances are mostly insufficient in keeping pace with these needs. One of the options in finding new ways to finance the facilities of public interest are private investments through a network of contract agreements, widely known under the term public-private partnership (PPP). A public-private partnership represents a contract agreement between a properly authorized local, regional or state authority and a private partner with a clear share of responsibilities and risks with the purpose of fulfilling a given public need. Further, the opinion of the responsible Croatian authorities related to the possibilities of implementing the PPP models in regard with the implementation of public facility project is presented.