Aslan, CigdemDuarte, David2014-10-062014-10-062014-09https://hdl.handle.net/10986/20375The 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.en-USCC BY 3.0 IGOACCOUNTINGACCOUNTING STANDARDACCOUNTING STANDARDSANNUAL PAYMENTANNUAL PAYMENTSAPPROPRIATIONSBACKED BONDSBALANCE SHEETBALANCE SHEETSBANK LOANSBENEFICIARIESBENEFICIARYBIDBORROWERBORROWING CAPACITYBUDGET EXECUTIONBUDGET FORMULATIONBUDGET REVIEWBUDGETINGCAPITAL INVESTMENTCASE OF DEFAULTCASH FLOWCASH FLOWSCASH PAYMENTSCENTRAL BANKCENTRAL GOVERNMENT GUARANTEESCHECKSCONCESSIONCONCESSION CONTRACTSCONCESSIONSCONFLICTS OF INTERESTCONSUMER SURPLUSCONTINGENT CLAIMSCONTINGENT LIABILITIESCONTINGENT LIABILITYCONTINUITY OF SERVICECONTRACT MANAGEMENTCONTRACT RENEGOTIATIONCONTRACT RENEGOTIATIONSCONTRACTUAL CLAUSESCONTRACTUAL PROVISIONSCORPORATE BONDSCOURT ORDERCREDIT ENHANCEMENTCREDIT ENHANCEMENTSCREDIT GUARANTEESCREDIT RATINGCREDIT RISKCREDIT RISK MANAGEMENTCREDITWORTHINESSDEBT MANAGEMENTDEFAULT PROBABILITIESDEFAULT RISKSDEFAULTSDEPENDENTDEVELOPING COUNTRIESDIRECT PAYMENTDISCLOSURE OF INFORMATIONDISCOUNT RATEECONOMIC EFFICIENCYELECTRICITYENABLING ENVIRONMENTEQUIPMENTEQUITY INVESTMENTSEQUITY REQUIREMENTEVENT OF DEFAULTEXCHANGE COMMISSIONEXCHANGE RATEEXCHANGE RATESEXISTING ASSETEXISTING ASSETSEXPENDITUREEXPENDITURESFINANCIAL ACCOUNTINGFINANCIAL ANALYSISFINANCIAL CAPACITYFINANCIAL FLOWSFINANCIAL INSTITUTIONFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL POSITIONFINANCIAL REPORTINGFINANCIAL REPORTING STANDARDSFINANCIAL RESOURCESFINANCIAL RISKFINANCIAL STATEMENTSFINANCIAL STRUCTURESFINANCIAL SUSTAINABILITYFINANCIERSFISCAL AUTHORITIESFISCAL BALANCEFISCAL DEFICITFISCAL DISCIPLINEFISCAL EXPENDITUREFISCAL EXPENDITURESFISCAL MANAGEMENTFISCAL POLICYFISCAL REPORTINGFOREIGN CURRENCYFOREIGN EXCHANGEFUTURE CONTRACTGOVERNANCE STRUCTUREGOVERNMENT BUDGETGOVERNMENT DEBTGOVERNMENT EXPENDITUREGOVERNMENT FINANCEGOVERNMENT GUARANTEEGOVERNMENT GUARANTEESGOVERNMENT OBLIGATIONSGOVERNMENT SUPPORTGUARANTEE FEEINCOME LEVELINFRASTRUCTURE FINANCINGINSTITUTIONAL FRAMEWORKINSTITUTIONAL FRAMEWORKSINSURANCEINTEREST RATESINTERNATIONAL BANKINTERNATIONAL STANDARDSLAST RESORTLEGAL FRAMEWORKLENDERSLEVEL OF COMMITMENTSLEVEL OF RISKLIABILITY MANAGEMENTLOANLOAN AMOUNTLOAN GUARANTEESLOCAL FINANCIAL MARKETMACROECONOMIC RISKSMAKING PAYMENTSMANDATEMARKET DATAMARKET VALUEMINIMUM EQUITYMINISTRIES OF FINANCEMONETARY FUNDMORAL HAZARDMUNICIPAL FINANCEMUNICIPALITIESNATIONAL GOVERNMENTSNATIONAL TREASURYNATURAL DISASTERSNEW CREDITOPPORTUNITY COSTOUTSTANDING DEBTPARTIAL CREDITPARTIAL GUARANTEEPAYMENT OBLIGATIONSPOLITICAL AUTHORITYPORTFOLIOPORTFOLIO MANAGEMENTPORTFOLIO RISKSPORTSPRIVATE CAPITALPRIVATE INVESTMENTPRIVATE INVESTORSPRIVATE PARTYPRIVATE SECTORPROBABILITY OF DEFAULTPROBABILITY OF DEFAULTSPROCUREMENTPROVISIONINGPUBLICPUBLIC ASSETPUBLIC ASSETSPUBLIC BANKSPUBLIC DEBTPUBLIC FINANCEPUBLIC FINANCE MANAGEMENTPUBLIC FINANCESPUBLIC FUNDSPUBLIC INFRASTRUCTUREPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC PRIVATE PARTNERSHIPSPUBLIC RESOURCESPUBLIC SECTORPUBLIC SECTOR ACCOUNTINGPUBLIC SECTOR DEBTPUBLIC SERVICEPUBLIC WORKSRATE OF RETURNRECEIVABLESREGULATORY AUTHORITYRENEGOTIATIONRENEGOTIATIONSREPAYMENTREPAYMENTSRESERVERESERVE FUNDRESOURCE ALLOCATIONRETURNSREVENUE GUARANTEESREVENUE SHARINGRISK EXPOSURERISK FACTORRISK MANAGEMENTRISK PROFILERISK SHARINGROADSSECURITIESSECURITIES EXCHANGESHAREHOLDERSSOVEREIGN GUARANTEESOVEREIGN GUARANTEESSTATE GUARANTEESTAXTAX EXEMPTIONSTAX INCENTIVESTIMELY PAYMENTTRANSPARENCYTREASURIESTREASURYTREASURY INVESTMENTUSER CHARGESVALUATIONVALUATIONS10.1596/1813-9450-7041