Managing the Fiscal Implications of Public-Private Partnerships in a Sustainable and Resilient Manner: A Compendium of Good Practices and Lessons Learned from the COVID-19 Pandemic

Public-private partnerships (PPPs) can sometimes be perceived as a means for delivering infrastructure for free. A more nuanced but still inexact view is that they are a mechanism to overcome fiscal constraints. Some argue, perhaps rightly, that often governments enter PPP contracts without fully understanding their fiscal implications. These misconceptions lead to several challenges. There is evidence that fiscal sustainability is often overlooked or ignored by countries with PPP programs, with long-term fiscal implications the governments did not understand or manage well.

Fiscal Risk in PPPs: Defining the Problem

The International Monetary Fund (IMF) and the World Bank have updated an important tool to help governments assess fiscal costs and risks arising from PPPs: the Public-Private Partnership Fiscal Risk Assess- ment Model (PFRAM) 2.0. The tool goes further to help governments manage PPPs proactively—so that identified risks are allocated, managed, and priced correctly—and, ideally, so that they don’t materialize. PFRAM has been in use since 2016 as part of IMF and World Bank technical assistance and has also been used by developing-country authorities working on these issues.

Public-Private Partnerships in the New EU Member States - Managing Fiscal Risk

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Public-Private Partnerships in the New EU Member States - Managing Fiscal Risk, Nina Budina

Hana Polackova Brixi and Timothy Irwin, World Bank Working Paper No. 114, World Bank 2007. 

 

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An Operational Framework for Managing Fiscal Commitments from Public-Private Partnerships - The Case of Ghana

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An Operational Framework for Managing Fiscal Commitments from Public-Private Partnerships - The Case of Ghana by Riham Shendy, Helen Martin, and Peter Mousley, World Bank 2013