SYSTEM OF FINANCIAL GUARANTEES FOR PRIVATE INVESTORS IN THE FRAMEWORK OF PUBLIC-PRIVATE PARTNERSHIP

Аннотация

The formation of a system of financial guarantees to encourage the participation of private investors in projects implemented within the framework of public-private partnerships (PPP) is considered an important strategic task. This article analyzes the theoretical foundations of financial guarantees for private investors within the framework of PPP, their types and functions, and develops scientific and practical recommendations for their implementation in the conditions of Uzbekistan. During the study, international experience was studied and the existing legal and regulatory framework in Uzbekistan was assessed. The results of the analysis showed that reducing financial risks for private investors and increasing their confidence are crucial factors in ensuring the success of PPP. Keywords: public-private partnership, financial guarantees, investors, risks, investment, protection mechanisms Introduction. Currently, the public-private partnership (PPP) mechanism is widely used in many countries as an important tool for the development of infrastructure and social services. PPPs serve to accelerate economic development, create new jobs and introduce innovations by combining state financial resources with the capabilities of the private sector. However, financial risks and uncertainties are recognized as one of the main obstacles to expanding the participation of private investors. For private investors, the risk of project failure, changes in the political and legal environment, and the weakness of mechanisms for protecting against currency risks can limit their active participation in PPP projects. Therefore, it is of urgent importance to form and develop a system of financial guarantees for private partners by the state, which will increase their confidence, increase investment flows and ensure overall stability. International experience shows that in countries where the system of financial guarantees has been effectively established, the scale and quality of PPP projects have been much higher. Although the regulatory framework for PPPs has been developing in Uzbekistan in recent years, further improving financial guarantee mechanisms remains an important task. 26 ACADEMIC RESEARCH IN MODERN SCIENCE International scientific-online conference Literature review: In the scientific and practical literature on public-private partnerships (PPPs), mechanisms for reducing financial risks for private investors are a particular area of focus. Yescombe (2011) emphasizes in his research that financial guarantees within the framework of PPPs are interpreted as a measure of trust provided by the state, which is an important factor in the process of making investment decisions by investors. Grimsey and Lewis (2004) substantiated the great role of instruments such as state guarantees, insurance mechanisms, and credit guarantees in effectively distributing risks in PPP projects. Hodge and Greve (2007) also highlighted in their research the effectiveness of state-guaranteed payments, minimum income guarantees, and credit risk reduction mechanisms in attracting private sector participants. According to the World Bank (2020), the lack of financial guarantees in the PPP process in developing countries remains a major obstacle for investors, therefore it is recommended to develop them on an institutional basis. In the experience of Uzbekistan, although the laws and government resolutions adopted on PPPs stipulate the need to introduce financial protection tools for private partners, in practice, their incomplete functioning and the uncertainty of guarantee mechanisms increase various risks (Tukhtayev, 2022; Khodjayev, 2023). Thus, the analysis of the literature shows that it is necessary to further strengthen the legal, institutional and economic foundations of financial guarantees in order to ensure the active participation of private investors in PPP projects. This study aims to study these aspects in depth.Methodology: This study was aimed at developing scientifically based recommendations for the effective organization of a system of financial guarantees for private investors within the framework of public-private partnerships (PPPs). Several approaches were combined in the methodology. First, to identify theoretical foundations, national and international scientific articles, legislative documents, analytical reports of the World Bank and the Asian Development Bank were studied using the content analysis method. This formed the basic concepts of the legal and economic mechanisms of financial guarantees. Second, as part of the empirical study, the practical state of the guarantee system for private investors in PPP projects implemented in Uzbekistan was assessed. In this regard, the financial guarantee clauses of 15 PPP contracts concluded between 2020 and 2023 were studied and their effectiveness, transparency, and functionality in covering risks were statistically analyzed. Third, semi-structured interviews were conducted