Legal Valences of Public-Private Partnership in the Republic of Moldova as an Economic Tool for Innovative Directions of Development

Abstract

The current economic situation leads to significant changes in the social sector of society. Formerly owned by the state, the infrastructure objects are transferred to private companies, the state reserving the right to regulate and monitor the subsequent activities of these objects. The public-private partnership is based on the cooperation between the public partner and the private partner to increase the efficiency of the public patrimony, each partner assuming concrete risks, innovations, and responsibilities. The Republic of Moldova development required the introduction of innovative management tools for implementing state and regional development strategies, such as the new format of specific programs, strategies for developing regional clusters, the introduction of public-private partnership principles. Governments understood that PPPs could help overcome the situation in the Republic of Moldova when medium and long-term financing sources with a maturity of 3 years are virtually inaccessible within the existing banking system. This situation, combined with a constant lack of financial resources in the budget, suggests that the initiation of the PPP is an alternative tool to further the country's infrastructure development. The article reviews the local legal valences on the public-private partnerships as an economic tool for innovative directions of development and the main weaknesses of the Republic of Moldova framework. https://doi.org/10.11114/ijsss.v9i1.5110