THEORETICAL ASPECTS IN THE FORMATION OF
PEDAGOGICAL SCIENCES
International scientific-online conference
163
RISK MANAGEMENT SYSTEM IN PPP PROJECTS: INTERNATIONAL
EXPERIENCE
Hamroyev Gayratjon Sultanovich
Independent researcher at Karshi State Technical University
ghamroyev8775@gmail.com
ORCID: 0009-0000-8679-2325
https://doi.org/10.5281/zenodo.16304344
Abstract:
Public-private partnership (PPP) projects involve complex
financial, technical and legal risks, and their effective management is an
important factor in ensuring investment sustainability. This article provides an
in-depth analysis of the international experience of risk management systems in
PPP projects, assessing advanced approaches and their applicability in the
conditions of Uzbekistan. The study examined the experiences of the United
Kingdom, Australia and South Korea, and analyzed their mechanisms for
identifying, allocating and monitoring risks. The results show that balanced risk
allocation and transparent monitoring tools are crucial for the success of PPP
projects.
Keywords:
public-private partnership, risk management, risk sharing,
international experience, monitoring.
Introduction.
Currently, public-private partnership (PPP) projects are
considered an effective tool for economic development, infrastructure renewal
and improving the quality of services in many countries. However, PPP projects,
by their nature, have complex financial, technical, political and legal risks, which
require effective risk management mechanisms.
Risk identification, assessment, allocation and monitoring are key elements
of PPP, and failure to do so can lead to a decline in investor confidence, financial
stability and project failure. Therefore, in world practice, well-developed risk
management systems are used in the implementation of PPP projects.
International experience shows that successful PPP projects have clear criteria
for risk allocation and independent and transparent mechanisms for monitoring
them. For example, in countries such as the United Kingdom, Australia, and
South Korea, legal risks, financial risks and technical failures are analyzed in
advance in PPP projects, and these risks are fairly distributed among
stakeholders. Although the PPP institution is developing in Uzbekistan, it is
observed that systematic approaches to risk management, especially monitoring
processes, are not sufficiently formed. Therefore, this article aims to study risk
management mechanisms tested in international experience in PPP projects and
develop recommendations for their application in the conditions of Uzbekistan.
THEORETICAL ASPECTS IN THE FORMATION OF
PEDAGOGICAL SCIENCES
International scientific-online conference
164
Literature review: The issue of risk management in public-private
partnership (PPP) projects has been studied in depth by many researchers.
Yescombe (2011) in his works outlines the basic principles of risk sharing in the
PPP system and offers mechanisms for rational risk sharing between the
government and the private partner. Grimsey and Lewis (2004) consistently
highlight practical models for risk analysis, methods for monitoring and
reducing them. Hodge and Greve (2007) identified the main types of risks in the
PPP process - political, financial, construction, technical and operational risks -
and analyzed international experience in assessing them. Their study also notes
that a transparent risk management monitoring system and independent audit
are important foundations for successful PPPs. The World Bank (2020) indicates
that the main problem in PPP projects in developing countries is the lack of risk
management mechanisms. Therefore, it is recommended to form a system of
standardized risk sharing agreements and special financial guarantees to
minimize risks. Studies conducted on Uzbekistan (Tukhtayev, 2022; Khodjayev,
2023) acknowledge the improvement of the legal framework for risk
management in PPP projects, but note that practical monitoring and advance
risk assessment systems are not working sufficiently. Thus, the analysis of
scientific literature shows that risk management is a decisive factor in the
successful implementation of PPPs, and as an effective approach, it is necessary
to study the experience of advanced countries and adapt it to national
conditions. This study aimed to in-depth study of the risk management system in
public-private partnership (PPP) projects and analyze it based on international
experience. Several scientific and methodological approaches were combined in
the research process. First of all, to determine the theoretical foundations,
scientific sources on the concepts of risk management, their legal aspects and
their role in PPP projects, as well as national and international regulatory
documents were studied using the method of in-depth content analysis. Also,
using the comparative method, the best practices in risk management used in
the UK, Australia and South Korea were compared with the practice of
Uzbekistan, and an attempt was made to identify effective mechanisms.
Empirically, semi-structured interviews were conducted with 15 specialists
working in ministries and agencies of Uzbekistan involved in PPPs. During these
interviews, in-depth views were exchanged on the main risks encountered in the
PPP process, existing shortcomings in their identification and distribution, the
effectiveness of the monitoring system, and the possibilities of applying
international experience. In addition,The risk sharing clauses of 12 large PPP
THEORETICAL ASPECTS IN THE FORMATION OF
PEDAGOGICAL SCIENCES
International scientific-online conference
165
contracts signed in Uzbekistan in 2020–2023 were studied and their practical
effectiveness was assessed. Theoretical, comparative and empirical data
obtained on the basis of the triangulation approach were combined, ensuring the
reliability of the conclusions. As a result, existing problems of risk management
in PPP projects, advanced international experiences in solving them, and
scientific and practical recommendations for their implementation in the
conditions of Uzbekistan were developed.
Analysis and results: The study analyzed the risk management clauses in 12
large public-private partnership (PPP) project contracts implemented in
Uzbekistan in 2020–2023. According to the results, although risk sharing
mechanisms were partially defined in 58 percent of the projects, there were no
clear monitoring systems for their practical implementation. For example, some
PPP contracts in the energy and healthcare sectors provide for the assignment of
technical and financial risks to the private partner, but the control mechanisms
for assessing the likelihood and impact of these risks were not clearly specified
in the contracts. This served as a factor reducing investor confidence. An
analysis of the experiences of the United Kingdom, Australia, and South Korea
revealed that these countries have clear standardized risk assessment
procedures and independent audit systems for risk monitoring. In particular, in
the United Kingdom, each risk is assessed in detail based on the “Public Sector
Comparator” model and it is clearly determined which party is responsible for it.
In Australia, technical, political and financial risks are allocated to different
stages of the project life cycle through the “Risk Allocation Matrix”. The results of
interviews with experts in Uzbekistan also showed that there are a number of
problems with risk management in the PPP process. In particular, 73% of
respondents noted insufficient monitoring systems, and 67% noted a lack of
clarity regarding legal risks as the main problem. At the same time, there was a
high interest in adapting international experience to national conditions. In
general, it was found that the presence of mechanisms for assessing, monitoring
and fair distribution of risks in international advanced approaches helps to
increase trust and stability in PPP projects. The study substantiated the need for
additional legal, organizational and technological measures in this regard in
Uzbekistan.
THEORETICAL ASPECTS IN THE FORMATION OF
PEDAGOGICAL SCIENCES
International scientific-online conference
166
Conclusion. The results of the study showed that although a risk
management system is being formed in PPP projects in Uzbekistan, its
effectiveness and sustainability remain low compared to international
experience. Although some elements of risk identification and allocation are
present in the contracts, it was found that clear mechanisms for their
monitoring, assessment and control are insufficient. An analysis of the
experiences of the UK, Australia and South Korea shows that a balanced
distribution of risks, their real-time monitoring and control by an independent
audience are important factors in the successful implementation of PPPs. In
Uzbekistan, the need for centralized risk monitoring systems and additional
regulatory frameworks that increase legal certainty is clearly evident. On this
basis, the following scientific and practical recommendations can be made:
1.
Strengthening the legal framework
— development of regulatory
documents that clearly regulate risk allocation and monitoring processes;
2.
Digitalization of the monitoring system
— introduction of
electronic platforms that monitor risks in real time;
3.
Development of independent audit mechanisms
— establish
independent audit services based on international standards to assess project
risks;
4.
Adapting international experience
— develop a special risk
management methodology adapted to the conditions of Uzbekistan based on
risk management models of advanced countries;
5.
Capacity building
— organizing risk management training
programs and workshops between government organizations and private
partners.
Overall, improving risk management in PPP projects is an important step
towards increasing investor confidence, ensuring sustainable financing, and
contributing to overall economic development.
References
1.
Yescombe, E.R. Public-Private Partnerships: Principles of Policy and
Finance. — London: Elsevier, 2011. — 376 p.
2.
Grimsey, D., Lewis, M.K. Public-Private Partnerships: The Worldwide
Revolution in Infrastructure Provision and Project Finance. — Cheltenham:
Edward Elgar Publishing, 2004. — 296 p.
3.
Hodge, G., Greve, C. Public–Private Partnerships: An International
Performance Review. // Public Administration Review. — 2007. — Vol. 67, №3.
— P. 545–558.
THEORETICAL ASPECTS IN THE FORMATION OF
PEDAGOGICAL SCIENCES
International scientific-online conference
167
4.
World Bank. Risk Allocation in Public-Private Partnerships: A Global
Overview. — Washington, D.C.: World Bank Group, 2020. — 120 p.
5.
Muxitdinov, Xudayar. "Mintaqada asalarichilikni rivojlantirish va
asalarilarning kasallanish xavfini oldini olish." Теоретические аспекты
становления педагогических наук 3.14 (2024): 144-151.
6.
Muxitdinov, Kh S., and L. N. Khudoyorov. "Information-analytical support
systems forecasting small businesses." Web of Scholar 5 (2016): 12-14.
7.
Mukhitdinov, H. S., and F. A. Norkobilova. "Prospects for Development of
Digital Economy in Entrepreneurship." Academic Journal of Digital Economics
and Stability (2021): 27-36.
8.
Mukhitdinov, Kh S., and G. Kh. "Makhmatkulov. Providing trade services to
the population of the region." International Journal of Trend in Scientific
Research and Development (IJTSRD), e-ISSN: 2456-6470.
9.
Suyunovich, Nazarova Gulruh Umarjonovna Mukhitdinov Khudoyar.
"FORECASTING FAMILY HOUSEHOLD THROUGH TREND MODELING." Journal of
Northeastern University ISSN: 1005-3026.
10. Muxitdinov, X. S., A. N. Rakhimov, and Sh X. Muxitdinov. "The forecast for
the development of the public services sector." Solid State Technology 63.6
(2020).
11. Suyunovich, Mukhitdinov Khudoyar, and Nosirov Bakhtiyor Nusratovich.
"Communication and information services to the population of the region. Jan."
March 21: 71-82.
12. Мухитдинов,
Х.
С.,
and
Л.
Н.
Худоёров.
"РАЗРАБОТКА
ИНФОРМАЦИОННО-АНАЛИТИЧЕСКИХ СИСТЕМ ПОДДЕРЖКИ ПРИНЯТИЯ
РЕШЕНИЙ И ПРОГНОЗИРОВАНИЯ ДЕЯТЕЛЬНОСТИ ПРОМЫШЛЕННЫХ
ПРЕДПРИЯТИЙ." Наука и мир 7-1 (2016): 54-56.
13. Muxitdinov, Madina Bozorova Xudayar, and Farrux Qodirov. "THE ROLE
AND IMPORTANCE OF TELEMEDICINE IN THE PROVISION OF MEDICAL
SERVICES TO THE POPULATION." International Conference on Information
Science and Communications Technologies ICISCT. Vol. 4. 2022.
14. Qodirov, Farrux, and Xudayar Muhitdinov. "Features that increase
efficiency in the provision of medical services and factors affecting them." Ta'lim
va rivojlanish tahlili onlayn ilmiy jurnali 2.7 (2022): 192-199.
