PUBLIC-PRIVATE PARTNERSHIPS UNDER FISCAL CONSTRAINTS: COST OF CAPITAL AND INVESTMENT LEVERAGE IN UKRAINE’S GREEN RECONSTRUCTION
DOI:
https://doi.org/10.46299/j.isjmef.20260505.08Keywords:
public-private partnership, green reconstruction, investment leverage, infrastructure projects, fiscal constraints, environmental effectAbstract
This article examines how public–private partnerships can influence financing costs and investment mobilisation for Ukraine’s green reconstruction under fiscal constraints. The methodology combines institutional and comparative literature analysis, conceptual analysis of the weighted average cost of capital and net present value, and illustrative investment leverage scenarios. Regulatory predictability, creditor protection, procedural transparency, and appropriate risk allocation are identified as potential channels for reducing risk premiums and transaction costs. The scenarios assume public capital contributions of 1.0–1.5% of a common reference GDP and aggregate investment leverage ratios of 3–5. These assumptions yield total investment of 3.0–7.5% of reference GDP, with non-government capital accounting for 66.7–80.0% of total financing. These figures illustrate financing relationships rather than forecasts or empirically estimated mobilisation effects. Guarantees and future availability payments require fiscal assessment separate from public capital contributions. The proposed framework connects institutional conditions, financing costs, investment structure, and environmental requirements, supporting subsequent project appraisal and empirical testing. Environmental benefits depend on investment in low-carbon and climate-resilient infrastructure, measurable contractual requirements, and implementation monitoring. The findings emphasise project preparation, appropriate risk allocation, environmental performance requirements, and fiscal oversight as complementary conditions for green reconstruction.References
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