Assessing and Managing Fiscal Risks from Public-Private-Partnerships (AMFR-PPP)
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- Assessing and Managing Fiscal Risks from Public-Private-Partnerships (AMFR-PPP)
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Bibliographic details
- Published: August 8, 2022
Overview
- Course presented by the Fiscal Affairs Department that provides an overview of the potential fiscal costs and risks arising from PPPs.
- Introduces international standards for accounting and reporting on PPPs and good practices for managing them while safeguarding fiscal sustainability.
- Includes hands-on exercises using the IMF’s and World Bank’s PFRAM 2.0 analytical tool to identify and quantify fiscal impact of individual projects and overall PPP portfolios.
Target audience and qualifications
- Target Audience:
- Mid-level to senior government officials working in ministries of economy and finance, PPP units, public investment units, fiscal risk units, ministries of infrastructure, or fiscal planning bodies.
- Qualifications:
- Relevant experience in public investment management, PPP project development and management, and management of fiscal risks.
Course objectives
- Upon completion of the course, participants should be able to:
- Identify main fiscal costs and risks arising from different types of PPP projects.
- Use the analytical tool PFRAM 2.0 to understand the international accounting and reporting standards for recording PPP transactions in government fiscal aggregates (i.e., deficit and debt) following both the cash and accrual accounting bases.
- Use PFRAM 2.0 to estimate main contingent liabilities arising from PPP contracts (e.g., debt guarantees, minimum revenue guarantees, and contract termination clauses).
- Develop a fiscal risks matrix for different types of PPP projects using PFRAM 2.0 and discuss good international practices for managing and mitigating specific fiscal risks from PPPs.
- Assess a portfolio of PPP projects focusing on its overall fiscal impact under different macroeconomic scenarios and simulate the fiscal impact of contract termination.
Tools, methods, and activities
- Analytical tool:
- PFRAM 2.0 (IMF and World Bank) for project-level and portfolio-level fiscal impact analysis.
- Methods and approaches:
- Application of international accounting and reporting standards to PPP transactions under cash and accrual bases.
- Estimation of contingent liabilities from PPP contract provisions such as debt guarantees, minimum revenue guarantees, and contract termination clauses.
- Construction of fiscal risks matrices and portfolio assessment under different macroeconomic scenarios.
- Learning activities:
- Hands-on exercises using PFRAM 2.0 to identify, quantify, and simulate fiscal impacts.