## Guinea: Technical Assistance Report-Public-Private Partnership (PPP) Institutional and Fiscal Risks Management

_Technical Assistance Reports, May 17, 2024_

## Source details

**Canonical URL:** [Guinea: Technical Assistance Report-Public-Private Partnership (PPP) Institutional and Fiscal Risks Management](https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/05/17/guinea-technical-assistance-report-public-private-partnership-ppp-institutional-and-fiscal-549156)

## Other formats

- [Markdown version](/en/publications/technical-assistance-reports/issues/2024/05/17/guinea-technical-assistance-report-public-private-partnership-ppp-institutional-and-fiscal-549156/index.md)
- [Structured JSON version](/en/publications/technical-assistance-reports/issues/2024/05/17/guinea-technical-assistance-report-public-private-partnership-ppp-institutional-and-fiscal-549156/index.json)
- [Bundle manifest](/en/publications/technical-assistance-reports/issues/2024/05/17/guinea-technical-assistance-report-public-private-partnership-ppp-institutional-and-fiscal-549156/bundle-manifest.json)

## Bibliographic details
- Published: May 17, 2024
- Series: Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798400276958.019

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### Summary
- Publication date: May 17, 2024
- Language: [This report is only available in French]
- Scope: Diagnostic of bottlenecks hampering the effectiveness of Guinea’s PPP governance framework and the management of PPP-related fiscal risks.
- Principal conclusion: The legal and institutional framework for PPP in Guinea appears to be strong, but implementation is not yet effective.

### Key findings
- Institutional implementation is weak despite a strong legal and institutional framework.
- Institutions involved in PPP management are gradually stepping-up their staff and capacity.
- The PPP unit (UPPP) has developed several standard documents (forms an templates) to assist contracting authorities in complying with legal and regulatory procedures for PPP projects.
- Line ministries face factors that prevent completion of feasibility studies, undermining project efficiency and value for money.
- Authorities exhibit a fiscal illusion of free infrastructure through PPPs; fiscal costs and contingent liabilities from PPPs are not sufficiently integrated into the fiscal risk management framework and the budget cycle.
- There is massive recourse to unsolicited proposals for PPPs, which are often poorly aligned with government priorities.

### Institutional capacity and procedures
- The PPP unit (UPPP) has created standard documents (forms and templates) designed to help contracting authorities comply with legal and regulatory procedures.
- Capacity building is under way but remains incomplete across institutions charged with PPP management.
- Weak completion rates for feasibility studies in line ministries are cited as a key bottleneck to ensuring value for money.

### Fiscal risks and budgetary integration
- The report emphasizes the need to consider fiscal costs and contingent liabilities generated by PPPs as part of:
  - the fiscal risk management framework, and
  - the budget cycle more generally.
- Current practice underestimates or overlooks fiscal implications of PPPs, contributing to a perception of “free infrastructure.”

### Unsolicited proposals and project selection
- The report highlights massive recourse to unsolicited proposals for PPPs.
- Unsolicited proposals are often poorly aligned with government priorities.
- Recommended approach: limit the use of unsolicited proposals and favor government-led calls tenders, in line with good practices.

### Recommendations
- The report makes nine high-priority recommendations aimed at improving PPP management and associated fiscal risk in Guinea.
- Recommendations focus on:
  - strengthening implementation of the existing legal and institutional framework;
  - accelerating capacity building within PPP institutions and line ministries;
  - ensuring completion of feasibility studies to secure project efficiency and value for money;
  - integrating PPP fiscal costs and contingent liabilities in fiscal risk management and the budget cycle;
  - limiting unsolicited proposals and promoting government-led tenders to align projects with priorities.

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## Content in this bundle

- **conclusions.**
  - [conclusions. (Markdown version)](/-/media/files/publications/tar/french/tarfa2024041.pdf.md){rel="alternate" type="text/markdown"}
  - [conclusions. (PDF)](/-/media/files/publications/tar/french/tarfa2024041.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/05/17/guinea-technical-assistance-report-public-private-partnership-ppp-institutional-and-fiscal-549156_