Public-Private Partnerships in the Caribbean Region: Reaping the Benefits While Managing Fiscal Risks
This paper reviews the potential contribution of PPPs to addressing infrastructure needs in the region, as well as potential risks they create to governments. It is the result of an innovative three-year project—financed by Canada and in cooperation with the Caribbean Regional Technical Assistance Center and the Caribbean Development Bank—aimed at building capacities in Caribbean countries to management fiscal costs and risks stemming from PPPs. It consisted of three workshops organized over three consecutive years for these countries and hands-on training on using the PPP Fiscal Risk Assessment Model (PFRAM). All countries answered a survey on PPP management framework and practices that helped provide tailored recommendations for the region.
The paper is organized as follows. Chapter 1 takes stock of the infrastructure development in Caribbean countries relative to comparable countries in the Pacific region and sub-Saharan Africa, and discusses the challenges limiting infrastructure provision in the region. Chapter 2 analyzes how PPPs can help the countries in the region and the potential risks associated with them. Chapter 3 provides recommendations on how Caribbean countries can address the challenges related to PPPs and improve the management of fiscal risks stemming from PPPs. Chapter 4 concludes.
