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Publications & Research :: Policy Research Working Paper

How Do Countries Measure, Manage, and Monitor Fiscal Risks Generated by Public-Private Partnerships? Chile, Peru, South Africa, Turkey

ACCOUNTING ACCOUNTING STANDARD ACCOUNTING STANDARDS ANNUAL PAYMENT ANNUAL PAYMENTS APPROPRIATIONS BACKED BONDS BALANCE SHEET BALANCE SHEETS BANK LOANS BENEFICIARIES BENEFICIARY BID BORROWER BORROWING CAPACITY BUDGET EXECUTION BUDGET FORMULATION BUDGET REVIEW BUDGETING CAPITAL INVESTMENT CASE OF DEFAULT CASH FLOW CASH FLOWS CASH PAYMENTS CENTRAL BANK CENTRAL GOVERNMENT GUARANTEES CHECKS CONCESSION CONCESSION CONTRACTS CONCESSIONS CONFLICTS OF INTEREST CONSUMER SURPLUS CONTINGENT CLAIMS CONTINGENT LIABILITIES CONTINGENT LIABILITY CONTINUITY OF SERVICE CONTRACT MANAGEMENT CONTRACT RENEGOTIATION CONTRACT RENEGOTIATIONS CONTRACTUAL CLAUSES CONTRACTUAL PROVISIONS CORPORATE BONDS COURT ORDER CREDIT ENHANCEMENT CREDIT ENHANCEMENTS CREDIT GUARANTEES CREDIT RATING CREDIT RISK CREDIT RISK MANAGEMENT CREDITWORTHINESS DEBT MANAGEMENT DEFAULT PROBABILITIES DEFAULT RISKS DEFAULTS DEPENDENT DEVELOPING COUNTRIES DIRECT PAYMENT DISCLOSURE OF INFORMATION DISCOUNT RATE ECONOMIC EFFICIENCY ELECTRICITY ENABLING ENVIRONMENT EQUIPMENT EQUITY INVESTMENTS EQUITY REQUIREMENT EVENT OF DEFAULT EXCHANGE COMMISSION EXCHANGE RATE EXCHANGE RATES EXISTING ASSET EXISTING ASSETS EXPENDITURE EXPENDITURES FINANCIAL ACCOUNTING FINANCIAL ANALYSIS FINANCIAL CAPACITY FINANCIAL FLOWS FINANCIAL INSTITUTION FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL REPORTING FINANCIAL REPORTING STANDARDS FINANCIAL RESOURCES FINANCIAL RISK FINANCIAL STATEMENTS FINANCIAL STRUCTURES FINANCIAL SUSTAINABILITY FINANCIERS FISCAL AUTHORITIES FISCAL BALANCE FISCAL DEFICIT FISCAL DISCIPLINE FISCAL EXPENDITURE FISCAL EXPENDITURES FISCAL MANAGEMENT FISCAL POLICY FISCAL REPORTING FOREIGN CURRENCY FOREIGN EXCHANGE FUTURE CONTRACT GOVERNANCE STRUCTURE GOVERNMENT BUDGET GOVERNMENT DEBT GOVERNMENT EXPENDITURE GOVERNMENT FINANCE GOVERNMENT GUARANTEE GOVERNMENT GUARANTEES GOVERNMENT OBLIGATIONS GOVERNMENT SUPPORT GUARANTEE FEE INCOME LEVEL INFRASTRUCTURE FINANCING INSTITUTIONAL FRAMEWORK INSTITUTIONAL FRAMEWORKS INSURANCE INTEREST RATES INTERNATIONAL BANK INTERNATIONAL STANDARDS LAST RESORT LEGAL FRAMEWORK LENDERS LEVEL OF COMMITMENTS LEVEL OF RISK LIABILITY MANAGEMENT LOAN LOAN AMOUNT LOAN GUARANTEES LOCAL FINANCIAL MARKET MACROECONOMIC RISKS MAKING PAYMENTS MANDATE MARKET DATA MARKET VALUE MINIMUM EQUITY MINISTRIES OF FINANCE MONETARY FUND MORAL HAZARD MUNICIPAL FINANCE MUNICIPALITIES NATIONAL GOVERNMENTS NATIONAL TREASURY NATURAL DISASTERS NEW CREDIT OPPORTUNITY COST OUTSTANDING DEBT PARTIAL CREDIT PARTIAL GUARANTEE PAYMENT OBLIGATIONS POLITICAL AUTHORITY PORTFOLIO PORTFOLIO MANAGEMENT PORTFOLIO RISKS PORTS PRIVATE CAPITAL PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE PARTY PRIVATE SECTOR PROBABILITY OF DEFAULT PROBABILITY OF DEFAULTS PROCUREMENT PROVISIONING PUBLIC PUBLIC ASSET PUBLIC ASSETS PUBLIC BANKS PUBLIC DEBT PUBLIC FINANCE PUBLIC FINANCE MANAGEMENT PUBLIC FINANCES PUBLIC FUNDS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC PRIVATE PARTNERSHIPS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC SECTOR ACCOUNTING PUBLIC SECTOR DEBT PUBLIC SERVICE PUBLIC WORKS RATE OF RETURN RECEIVABLES REGULATORY AUTHORITY RENEGOTIATION RENEGOTIATIONS REPAYMENT REPAYMENTS RESERVE RESERVE FUND RESOURCE ALLOCATION RETURNS REVENUE GUARANTEES REVENUE SHARING RISK EXPOSURE RISK FACTOR RISK MANAGEMENT RISK PROFILE RISK SHARING ROADS SECURITIES SECURITIES EXCHANGE SHAREHOLDERS SOVEREIGN GUARANTEE SOVEREIGN GUARANTEES STATE GUARANTEES TAX TAX EXEMPTIONS TAX INCENTIVES TIMELY PAYMENT TRANSPARENCY TREASURIES TREASURY TREASURY INVESTMENT USER CHARGES VALUATION VALUATIONS
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World Bank Group, Washington, DC
Africa | Europe and Central Asia | Latin America & Caribbean | Chile | Peru | South Africa | Turkey
2014-10-06T20:39:46Z | 2014-10-06T20:39:46Z | 2014-09

The topic of managing fiscal risks arising from public-private partnerships is receiving increased attention as more governments turn toward this type of financing for large infrastructure projects. Governments can manage balance sheet exposure to public-private partnerships by quantifying and capturing direct obligations and provisions for potential calls on government guarantees associated with public-private partnership projects in the preparation of the medium term fiscal framework and annual budget. This working paper examines how four countries with active public-private partnership projects manage the costs and risks of financial obligations generated by these investments throughout the lifetime of the contracts. The paper seeks to complement the existing literature with a practitioner's point of view while exploring if and how these countries monitor and evaluate the fiscal risks generated by the portfolio of public-private partnerships (as well as individual projects). The countries covered are Chile, Peru, South Africa, and Turkey, all of which have experience implementing public-private partnership projects. The research finds that countries have tailored fiscal risk management and monitoring frameworks to fit their circumstances and respective budgeting, accounting, and reporting practices. All four countries assess the overall or partial credit exposure to monitor and manage their fiscal commitments from public-private partnerships in a consolidated way. All countries have developed evaluation models to help assess fiscal risks and assess project and portfolio level credit exposure. Further scrutiny could be focused on budgeting and accounting practices, which could be strengthened and brought in line with international standards. Similarly, sharing and standardizing information would improve transparency and accountability.

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