In the initial stages of the adoption and institutionalization of Public-Private Partnerships (PPPs), national governments of transitional economies have accepted, developed, and organized Public-Private Partnerships with varying degrees of success. This study aims to investigate the critical success factors (CSFs) influencing the establishment of a sustainable Public-Private Partnership in transition conditions. In the first part of the paper, based on an extensive review of the literature, previous studies and relevant results in this field are presented as a background for this research. In the second part of this article, the survey used a factor analysis, which, with the application of the Principal Component Analysis and Varimax method with Kaiser normalization, has extracted four CSFs: (1) the establishment of a central PPP unit—knowledge center; (2) the establishment of a compatible legal/regulatory framework; (3) development of national PPP policies and strategies; and (4) standardization and transparency of the process. In the concluding remarks, the authors address the perspectives and methodological research constraints, examining possibilities to develop new knowledge and more efficient Public-Private Partnership implementation in the developing PPP markets of transitional economies.

This paper analyses the reform of the traditional role of public sector, the acceptance of new public management, and the implementation of the PPP model in the public investments financing. The gap between the need to build new public infrastructure and limited budget capacities requires a new role of the public sector, a new approach and new strategies. In the context of fiscal constraints, Public-Private Partnership (PPP) ensures more efficient implementation of public investments - faster construction, lower costs, optimal risk allocation, more efficient management, better public service, etc. Based on the study of new public administration models, the aim of this paper is to point to the possibility of applying the Public-Private Partnership model and to identify the new role of the public sector in the provision of public services and the provision of public infrastructure. This paper presents a study on the adoption and application of the model of Public-Private Partnerships in the Republic of Serbia and the Republic of Croatia.

In present-day conditions of global economy, the processes of development of national economies require the need for capital investments in the development and improvement of public infrastructure, and the provision of public services in the field of general social activities (education, health care, culture, sports) and social issues. The demand for a better infrastructure and more efficient public service, with public sector constraints, requires a new role of public sector, a new approach and new strategies. In the context of the above mentioned, Public-Private Partnership (PPP) establishes an innovative framework for more efficient implementation of public investments - faster construction, lower costs, optimal risk allocation, more efficient management, better public services, etc. In this paper we will present the most important characteristics of the Public-Private Partnership model, with a view to the chronological development of PPP institutional framework in the Republic of Serbia.