Бизнес вa тaдбиркорлик олий мaктaби

CONSTRUCTION OF LOGISTICS CENTERS AND THEIR FINANCING 
Elbekov J.U. - Master student of GSBE 
More than 40 countries in the world do not have direct access to the sea. To get 
goods to the coast, they have to cross the borders of another country. Before reaching 
the sea, the cargo has to cross at least two territories, that makes Uzbekistan unique 
country. 
Development of logistics in the Republic of Uzbekistan (RUz) is of paramount 
importance, a country with over 32 million population, with no access to the sea, and 
remoteness from world markets make the need to develop a transportation and logistics 
system essential for RUz.
World experience of developed countries shows that special complexes of 
infrastructure facilities and services, which nowadays are called «logistic center and 
transport terminal», can provide maximum efficiency in development of the transport-
logistic sector. These facilities provide services on customs services of goods and 
vehicles, their storage, transshipment, insurance, transport-forwarding support, as well 
as further distribution in the regions of the republic.
Many large investment projects are also being implemented in RUz to construct 
and develop a system of multimodal transport and logistics centers. A total of 17 
logistics centers specializing in the processing, storage and transportation of fruit and 
vegetable products are to be built in the country by 2022, most of which have already 
been put into operation. The total cost of the projects to be implemented is estimated 

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834 
at more than 120 billion US dollars. To implement these projects, foreign countries 
take the opportunity to borrow capital to finance investment activities.
However, in the context of the growing economic crisis, new forms and methods 
of raising debt as an investment resource need to be detected. Financing an investment 
project involves selecting methods of financing, methods of attracting investment 
resources in order to ensure the financial feasibility of the project, determining the 
sources of investment financing and their structure. The steps mentioned below are 
methods of investment project financing that can be considered and implemented. 
- the use of its own sources of funds (self-financing (internal financing), i.e. 
making investments using only its own funds) 
- An «Initial public offering» (the issuance of additional ordinary and preferred 
shares in order to provide financial support for the implementation of the investment 
project; 
- Bank/debt financing (in the form of investment loans from banks and special-
purpose bond issues); 
- budget financing (use of budgetary funds in the form of: investments in the 
equity of enterprises, budgetary loans); 
- Project financing (investment projects are characterized by a special way of 
ensuring repayment of investments, which is based on the investment qualities of the 
project itself and income generated by the company in the future); 
Project financing is the most appropriate method of financing the construction of 
logistics centers, since the money is not issued against a governmental or corporate 
guarantee or against a pledge of property, but against the cash flow, which will be 
generated by the project after its completion.
The basic principles of project finance are that there is a strictly defined or 
separate economic activity within the project. There are at least three parties involved 
in such a project with a complex distribution of financing, responsibility, and risk for 
the capital invested, governed by a set of contracts and agreements.
The first participant is the project company. It is set up specifically for the project, 
is responsible for its implementation and usually has no financial history or assets to 
pledge. This project company is also called a special purpose vehicle (SPV). By setting 
up a project company, there is no risk of circumstances relating to the company's past 
affecting the project. The second participant is the investor who invests in the equity 
of the project company. Investors are rarely limited to monetary contributions and 
profit; they may invest more than financial contributions and are often called project 
sponsors.The third actor is the lender.
The construction of logistics centers will improve the quality of primary 
processing of goods in the matter of time management, industrial processing, create 
more acceptable storage conditions for agricultural products and set up their fast and 
convenient export, and the use of project financing in the construction of logistics 
centers provides a long period of borrowed funds.