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PPP as a manner of improvement the business of facilities at public property

Public-Private Partnership (PPP) as a long-term contractual relationship between the public and private partners in recent years is gaining in importance and is becoming a trend that allows the reconstruction and restoration of publicly owned sports and cultural facilities without the involvement of significant funds from the limited public budget.

In this regard, the City of Novi Sad has recently announced a public invitation to private companies to apply if they are interested in improving the business of JP Sportski centar Vojvodina (Spens) through PPP. The object of the PPP project is investment in Spens, which besides construction and installations of plants and equipment, also implies investment in an additional space that will form a separate functional or technical unit. Potential investors, who will be entrusted with the management of this important facility, should propose a framework business plan for a period of at least 15 years (source: www.blic.rs).

Unfortunately, Sava Center, the largest congress center in Serbia and one of the symbols of the city of Belgrade, still has not chosen a private partner that would invest in this facility, after two full years and two tenders. The offer at the total amount on EUR 25 milions, proposed by Delta Holding as the only bidder on the last tender, was not acceptable for the city of Belgrade.
From the above examples, it can be concluded that there is a large number of possibilities for cooperation through PPP projects, but for their wider application in our region, it is certainly necessary for investors to have professional cooperation with experts from legal, financial and other close fields, so that project proposals are prepared on a way that will enable them to obtain a positive opinion from the Commission for PPP of the Republic of Serbia, as a necessary condition for the realization of the project.