## ASSESSING AND MANAGING FISCAL COSTS AND RISKS FROM PUBLIC-PRIVATE-PARTNERSHIPS (PPPs)

## Source details

**Canonical URL:** [ASSESSING AND MANAGING FISCAL COSTS AND RISKS FROM PUBLIC-PRIVATE-PARTNERSHIPS (PPPs)](https://www.imf.org/-/media/files/topics/fiscal/fiscal-risks/seminarsdocs/jvi2021-frmpppmarch2021.pdf)

## Other formats

- [Markdown version](/-/media/files/topics/fiscal/fiscal-risks/seminarsdocs/jvi2021-frmpppmarch2021.pdf.md)
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### Workshop overview
- Event: IMF—Joint Vienna Institute (JVI) workshop.
- Location and dates: Austria, March 8 –11, 2021.
- Daily format: sessions held in Vienna time with lectures (L), working sessions (W), Q&A, breaks, and homework.
- Objectives:
  - Understand fiscal costs and risks from PPPs.
  - Learn budgeting, accounting, and reporting for PPPs.
  - Apply PFRAM 2.0 to assess project- and portfolio-level risks.
  - Review international good practices for managing PPP fiscal risks.

### Key instructional modules (lectures)
- L1. Understanding Fiscal Costs and Risks from PPPs (14:30-15:30, Day 1)
  - What are PPPs?
  - Why we do PPPs and we worry about them?
  - International experience
  - Main takeaways
  - Expert: Isabel Rial, FAD/IMF
- L2. Budgeting, Accounting and Reporting for PPPs (16:00-17:00, Day 1)
  - PPPs and Public Investment Management (PIM)
  - Budgeting for PPPs
  - International standards for accounting and reporting PPPs in public sector accounts
  - Expert: Katja Funke, FAD/IMF
- L4. The PFRAM Risk Matrix (16:00-16:45, Day 3)
  - Understanding the fiscal risk assessment in PFRAM 2.0
  - Expert: Isabel Rial, FAD/IMF
- L5. Managing fiscal costs and risks from PPPs—International Good practices (14:15-15:15, Day 4)
  - Select good projects
  - Strong institutional and legal frameworks
  - Transparent accounting and reporting
  - Robust fiscal risks management function
  - Expert: Isabel Rial, FAD/IMF
- L6. Analyzing a PPP Portfolio (15:30-16:00, Day 4)
  - How could PFRAM support PPP-fiscal risk management function
  - Estimation of contingent liabilities
  - Expert: Katja Funke, FAD/IMF

### Practical exercises, tools, and PFRAM 2.0 application
- L3. Introduction to PFRAM (17:00-18:00, Day 1)
  - Description of PFRAM 2.0
  - A structured process for assessing PPP contracts
  - PFRAM inputs & outputs
  - Project risk matrix
  - Expert: Isabel Rial, FAD/IMF
- Working sessions using PFRAM 2.0:
  - W1. Joined working session: Building a 3-project portfolio using PFRAM 2.0 (14:15-15:15, Day 2)
    - Navigating PFRAM 2.0
    - Inputting data
    - Understanding main outputs
    - Debt and minimum revenue guarantees
    - Facilitators: Isabel Rial and Katja Funke
  - W2. Working groups: Government-funded PPPs (15:15-16:00; 16:15-16:45, Day 2)
    - Using PFRAM to assess examples of government-funded PPPs
    - Discussion of main results
    - Facilitators: Isabel Rial and Katja Funke
  - W3. Working groups: User-funded PPPs (16:45-18:00, Day 2)
    - Using PFRAM to assess examples of user-funded PPPs
    - Discussion of main results
    - Facilitators: Isabel Rial and Katja Funke
  - W5. Joined working session: Sensitivity shocks and portfolio analysis (14:15-15:00, Day 3)
    - Sensitivity analysis
    - Contract termination
    - Expert: Katja Funke, FAD/IMF
  - W6. Working groups: shocks in a 3-project portfolio (15:00-15:45, Day 3)
    - Using PFRAM to assess the impact of various shocks on individual projects and the portfolio as a whole
    - Facilitators: Isabel Rial and Katja Funke
  - W7. Working groups: fiscal risks matrix (16:45-17:30, Day 3)
    - Using the fiscal risk assessment in PFRAM 2.0
    - Facilitators: Isabel Rial and Katja Funke

### Exercises, homework, and participant engagement
- Homework items:
  - W1. Accounting exercise: Review video summarizing L2, and solution to the exercise provided (after Day 1).
  - W4. Combined-financing PPPs: Review the exercise and solution provided (after Day 2).
  - Final homework: Review all material provided during the workshop so far, take note of doubts and concerns for further discussion (after Day 3).
- Participant interactions included polls, debriefs at 14:00-14:15 each day, Q&A sessions, and a wrap-up and course evaluation (17:30-18:00, Day 4).

### Key policy recommendations and institutional practices emphasized
- Select good projects through rigorous project appraisal.
- Maintain strong institutional and legal frameworks governing PPPs.
- Ensure transparent accounting and reporting of PPPs in public sector accounts.
- Implement a robust fiscal risks management function that:
  - Uses tools such as PFRAM 2.0 to estimate contingent liabilities.
  - Conducts sensitivity analysis and portfolio-level assessments.
  - Tracks debt and minimum revenue guarantees.

### Schedule highlights (exact times)
- Day 1 (Monday, March 8, 2021): Welcome remarks 14:00-14:30; L1 14:30-15:30; L2 16:00-17:00; L3 17:00-18:00.
- Day 2 (Tuesday, March 9, 2021): Debrief 14:00-14:15; W1 14:15-15:15; W2 15:15-16:00 and 16:15-16:45; W3 16:45-18:00.
- Day 3 (Wednesday, March 10, 2021): Debrief 14:00-14:15; W5 14:15-15:00; W6 15:00-15:45; L4 16:00-16:45; W7 16:45-17:30; Q&A 17:30-18:00.
- Day 4 (Thursday, March 11, 2021): Debrief 14:00-14:15; L5 14:15-15:15; L6 15:30-16:00; Q&A 16:00-17:30; Wrap-up and course evaluation 17:30-18:00.

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_Source: https://www.imf.org/-/media/files/topics/fiscal/fiscal-risks/seminarsdocs/jvi2021-frmpppmarch2021.pdf_