The Effects of the Financial Crisison Public-Private Partnerships

July 1, 2009

Preview Citation

Format: Chicago

The Effects of the Financial Crisison Public-Private Partnerships, (USA: International Monetary Fund, 2009) accessed September 18, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper investigates the impact of the global financial crisis on public-private partnerships (PPPs) and the circumstances under which providing support to new and existing projects is justified. Based on country evidence, cost of and access to finance are found to be the main channels of transmission of the financial crisis, affecting in particular pipeline PPP projects. Possible measures to help PPPs during the crisis include contract extensions, output-based subsidies, revenue enhancements and step-in rights. To limit government's exposure to risk, while preserving private partner's efficiency incentives, intervention measures should be consistent with the wider fiscal policy stance, be contingent on specific circumstances, and be adequately costed and budgeted. Governments should be compensated for taking on additional risk.

Subject: Exchange rate risk, Expenditure, Financial crises, Financial regulation and supervision, Financial statements, Market risk, Public financial management (PFM), Public investment and public-private partnerships (PPP)

Keywords: Exchange rate risk, Financial crises, Financial statements, Global, Market risk, PPP Canada, PPP consortium, PPP market, PPP program, PPP project, PPP vulnerability, PPPs, Private sector, Public investment, Public investment and public-private partnerships (PPP), Risk realization, Value-for-money, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/144
Stock No:

WPIEA2009144
ISBN:

9781451872910
ISSN:

1018-5941

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