Nargiza kasimova farkhod mukhamedov elkan harebov

partnership project should be the following: 
- analysis of its viability (determining the feasibility of the project, taking 
into account the projected cost of attracted financing) 
- development of a plan to attract financing (reaching preliminary 
agreements with potential lenders on the volumes and conditions of financing, 
discussing with the state issues of the distribution of financial risks between the 
parties, the possibility of compensating part of the interest rate, etc.) 
- financial closure —  the actual attraction of financing, considering  the 
selected investment technologies, acceptance by the private party of certain 
requirements (covenant), as well as the fulfillment of all additional and 
suspensive conditions established by the lender 
In its most general form, the decision to finance a PPP project should 
include two elements: 
- identification of funding sources 
- selection of specific investment technologies. 
- The process of financing public-private partnership projects can be 
carried out in one of the following ways: 
- self-financing, involving the use of private funds as a source of financing, 
also here we can talk about partial financing on an irrevocable basis from state 
budgets of one level or another 
- private borrowing 
- attraction by the state of borrowed funds 
- combination of the first three ways of financing 
It should be noted that in many respects the success of the implementation 
of the public-private partnership project is determined by the capabilities of the 
private party to use financial resources taking into account the specifics of 
available  investment technologies and the corresponding construction of cash 
flows within the framework of the project. 
 
 
 
9 

---

In this context, financial resources can be divided into two groups: 
-  available from the private party, including cash on accounts, funds in 
settlements, borrowed funds (already received), as well as fixed assets and 
current assets (considering their liquidity) 
-  potential financial resources, that is, those resources (usually in cash) that 
can be attracted by a private party. In most cases, such resources are attracted 
based on payment, urgency, and repayment. But to understand and evaluate the 
appropriateness of their use in a public-private partnership project, it is first 
important to determine how much financial resources the private party  can 
attract as much as possible 
Sources of attracting potential financial resources can serve as the stock 
and money markets. Moreover, for each of these markets there are investment 
technologies: 
-  for the stock market - the issue of shares and bond issues 
- for the money market - lending, leasing, import financing (open letters of 
credit, loans guaranteed by export insurance agencies, forfaiting), factoring 
Each of these technologies has already been mentioned and described in 
Russian literature many times. At the same time, it should be noted that the 
management of the financial component of the public-private partnership project 
should consist in finding the best combinations and improving the existing 
investment technologies, subject to a deep understanding of the advantages and 
disadvantages of each of them, taking into account the current market situation. 
The classification of sources of financing into internal and external is 
universally recognized. We are considering possible options for using external 
sources of financing attracted by the private party in public-private partnership 
projects, since, as already noted, this is the most common approach to 
structuring public-private partnership projects in world practice. Among all 
external sources of financing of public-private partnership projects, it is 
advisable to distinguish three main groups: 
- technologies of private (individual) borrowed (debt) financing of public-
private partnership projects. Within this group, credit (including project 
financing), leasing, export-import financing instruments and structural products 
used by the private party are considered 
- instruments of public borrowed (debt) financing of investment projects. 
Within this group, the issue of bonds and credit notes is considered. At the same 
time, a bond loan may be issued on behalf of the state or private party 
- instruments of public joint-stock (equity) financing of public-private