Understanding and Assessing Fiscal Risk from Public Private Partnerships
Introduction
is an analytical tool to assess fiscal costs and risks arising from PPP projects. It is designed to assist governments in assessing fiscal implications of PPPs, as well as in managing these projects in a proactive manner. It has been used in the context of IMF and WBG technical assistance, as well as by country authorities (for example, PPP units in Ministries of Finance, public corporations) to better understand the medium- to long-term fiscal implications of PPPs
PPPs can impose important future public costs, while PPP government guarantees create explicit contingent liabilities similar to public debt obligations. The risk that arises from such partnerships must be transparently valued to assess a country’s fiscal profile. The purpose of this course is to show that the notion of a PPP as a (set of) contingent claim(s) can also be used to value the PPP public risk.
Course Objectives
- Understand good practices in managing and mitigating fiscal costs and risks from PPP projects
- Use the PPP Fiscal Risk Assessment Model (PFRAM 2.0) to evaluate PPP projects
Target Group
Senior staff in charge of assessing and managing fiscal risks within PPP units, fiscal risk unit, macro-fiscal units, budget directorate, Treasury, and accounting directorate