Transformation of Public Private Partnership Legal Regulation Model in Light of “Sustainable Development” Theory

Abstract

“Sustainable Development” theory currently turns into action. “Sustainable Development Goals” and “ESG” are categories that once attracted only a narrow circle of subjects involved in their implementation processes, have now become significant for an extremely wide range of subjects. Various management tools and investment mechanisms are used to ensure sustainable development. The recognition of public-private partnership (PPP) as one of the mechanisms to achieve the SDGs caused a change in the traditional PPP model and raised the question of whether the legal regulation of PPP should be transformed. Although in recent years the concept of sustainable development has become increasingly important in regulating a wide range of relations, the search for and implementation of legal means to ensure sustainable development in the implementation of investment activities, including on the basis of PPP agreements, is limited. The subject of the study became the doctrinal and legislative approaches to the regulation of PPP in relation to the SDGs and ESG-factors, other forms of “sustainable” infrastructure investment projects with the participation of the governments; the purpose is to assess the legal regulators necessary to build a model of regulation of the relations arising in this regard. Using an interdisciplinary approach in conducting the research, the article defines the goals, forms and main elements of the PPP legal regulation model as a means of achieving the SDGs and compliance with ESG factors. Based on the results of the study, the author developed the concept of “sustainable development clauses” in the PPP agreement. It is concluded that the transformation of the legal regulation of PPP should affect the principles of regulation, forms of PPP, the processes of determining the effectiveness and comparative advantage of PPP, prequalification requirements and competition criteria for the right to conclude a PPP agreement, as well as the terms of the PPP agreement. In the broader context of legislation and law enforcement practice it is proved that civil legislation and civil-law contractual structures can be used as a tool for implementing the social and climate agenda.