The inability for providing sufficient funds and technical expertise are the key reasons due to which the principle of public-private partnership (PPP) is recommended to be applied. Analyses by international financial institutions suggest that developing countries should single out between 8 and 10% of GDP for infrastructural projects, but this objective is rarely met.

These are the conclusions of Wednesday's panel discussions held at the international PPP conference in Geneva, which were presented by Vice Premier Vladimir Pesevski.

"Every state faces problems while providing funds for infrastructural projects and seldom there are enough capacities for conducting capital projects. Hence the need for private partner, who can contribute with their knowledge and experience," Pesevski stated.

Speaking after his address, he said that Macedonia had had positive experience with public-private partnership, including the process of giving the Macedonian airports under concession.

Participants at the debate emphasised why public-private partnerships are significant for the economic development of states, pinpointed various ways for their realisation and referred to the global crisis.

PPP is the most suitable for realising major infrastructural projects, including transport, railroad, roads, healthcare, energy and education. Macedonia in 2012 envisages investments in capital projects of 6% of the GDP, being a 19% increase compared to 2011.

On Thursday, the Vice PM will present Macedonia's experience with PPP as well as country's investment opportunities.

The conference "Public-Private Partnership (PPP) Days 2012", which brings together high-level delegations and businessmen from numerous countries, is jointly hosted by the UN Economic Commission for Europe, the World Bank Institute and the Asian Development Bank.