The nature of public-private partnership as a form of cooperation between public and private sectors is considered. Essence of public and private sectors is analyzed. Several approaches to definition of «public-private partnership» are investigated, its main features are given. Author’s definition of public-private partnership is proposed. Difference between public-private partnership and conventional procurement is given, benefits of public and private sectors while performing state functions are substantiated. The main models of public-private partnership are characterized. Practice of Private Finance Initiative projects’ implementation as a form of collaboration between public and private sectors is investigated. Basic measures for enhancing public-private partnership in Ukraine are proposed. 

public-private partnership (PPP), contractual relations, public sector, private sector, PPP models, private finance initiative