Publication: 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
Date
2023-03-22
ISSN
Published
2023-03-22
Author(s)
World Bank
Abstract
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. Governments
also struggle with perceptions that they are not fully
transparent about the real, ultimate costs of PPP projects.
This report aims to illustrate how to improve fiscal risk
management and treatment of fiscal commitments and
contingent liabilities (FCCL) arising from PPP projects, to
build better Infrastructure post-COVID-19. It intends to be
a resource for World Bank client countries, including low
income and fragile economies, to design their fiscal PPP
management frameworks in a viable way that helps them
develop their PPP programs while maintaining
medium-to-long-term fiscal sustainability and resilience.
With that in mind, Volume I highlights and contextualizes
the main findings from a set of case studies that assessed
the PPP fiscal risk management framework in select
countries, and synthesizes the observable and qualitative
results in managing the impact of crises, in particular the
COVID-19 pandemic. Based on that, it also explores how this
crisis has affected PPP projects and overall PPP programs,
and suggests improvements to FCCL management frameworks in
order to strengthen the capacity of countries to continue
with their PPP programs in a sustainable fiscal manner.
Volume II contains the detailed case studies on which Volume
I is based.
Link to Data Set
Citation
“World Bank. 2023. 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. © Washington, DC. http://hdl.handle.net/10986/39578 License: CC BY-NC 3.0 IGO.”