Management of public-private partnership contracts as a method of risk mitigation

Abstract

The partnership between private com005panies and the state is one of the most important solutions for creating an efficient economic activity, developing the industrial, and social infrastructure, and stimulating the growth of the country's competitiveness. The use of the PPP system leads to attracting additional investments in infrastructure development and modernization of fixed assets in various industries, as well as increasing the efficiency of management processes. The problem with implementing investment projects refers to unforeseen situations that may affect the performance of investments. And during the implementation process, certain types of risks may affect its effectiveness. Therefore, a sustainable contractual structure with a commercially acceptable risk distribution will be a decisive factor in financing infrastructure development. In this article, to achieve an effective result, it is proposed to use standardized contract documents, which will allow you to respond promptly to any deviation in the implementation of the project and thus help to avoid many risks at all stages of the project. CZU: [005:334.752]:334.722.26; JEL: O1, M1, M2.