{
  "title": "Enforcing Public-Private Partnership Contract: How do Fiscal Institutions Matter?",
  "publication": "IMF Working Papers, November 15, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/11/15/enforcing-public-private-partnership-contract-how-do-fiscal-institutions-matter-45353",
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  "summary": "Public-private partnerships (PPPs) have increased rapidly in emerging and developing countries, creating both opportunities and fiscal challenges.",
  "sections": [
    {
      "heading": "Overview and scope",
      "content": "- Author: Manabu Nose\n- Publication date: November 15, 2017\n- Series: IMF Working Papers, Working Paper No. 2017/243\n- Pages: 32\n- Volume: 2017\n- Issue: 243\n- DOI: https://doi.org/10.5089/9781484328286.001\n- Stock No: WPIEA2017243\n- ISBN: 9781484328286\n- ISSN: 1018-5941\n- Data coverage: analysis uses about 6,000 PPP contract-level data"
    },
    {
      "heading": "Key findings",
      "content": "- PPPs have increased rapidly in emerging and developing countries, creating both opportunities and fiscal challenges.\n- Governments have increased commitments in guarantees and direct subsidies to promote PPPs, while contractual disputes remain high with significant costs.\n- Larger government financing needs are associated with a higher probability that governments offer guarantees.\n- Lower budget transparency is associated with a higher probability that governments offer guarantees.\n- Lower bureaucratic efficiency is associated with a higher probability that governments offer guarantees.\n- Propensity score matching results show that disputes are more common for guaranteed contracts due to:\n  - adverse selection effects, and\n  - contingent liability effects.\n- PPP management quality and budget transparency are key determinants for a longer survival of PPPs."
    },
    {
      "heading": "Methodology highlights",
      "content": "- Empirical analysis conducted on about 6,000 PPP contract-level observations.\n- Propensity score matching used to assess the impact of guarantees on dispute incidence."
    },
    {
      "heading": "Policy implications and recommendations (implied by analysis)",
      "content": "- Improve budget transparency to reduce the probability that governments offer guarantees and to support longer PPP survival.\n- Strengthen bureaucratic efficiency to lower reliance on guarantees in PPP contracts.\n- Enhance PPP management quality to increase PPP project survival and reduce disputes.\n- Recognize and manage adverse selection and contingent liability risks when offering guarantees on PPPs.\n\nIMF Working Paper by Manabu Nose, \"Enforcing Public-Private Partnership Contract: How do Fiscal Institutions Matter?\", November 15, 2017.\n\n---\n\n Content in this bundle\n\n- Wp17243\n  - Wp17243 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp17243 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/11/15/enforcing-public-private-partnership-contract-how-do-fiscal-institutions-matter-45353"
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    "Authors: Manabu Nose",
    "Published: November 15, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484328286.001",
    "Author: Manabu Nose",
    "Publication date: November 15, 2017",
    "Series: IMF Working Papers, Working Paper No. 2017/243",
    "Pages: 32",
    "Volume: 2017",
    "Issue: 243",
    "DOI: https://doi.org/10.5089/9781484328286.001",
    "Stock No: WPIEA2017243",
    "ISBN: 9781484328286",
    "ISSN: 1018-5941",
    "Data coverage: analysis uses about 6,000 PPP contract-level data",
    "PPPs have increased rapidly in emerging and developing countries, creating both opportunities and fiscal challenges.",
    "Governments have increased commitments in guarantees and direct subsidies to promote PPPs, while contractual disputes remain high with significant costs.",
    "Larger government financing needs are associated with a higher probability that governments offer guarantees.",
    "Lower budget transparency is associated with a higher probability that governments offer guarantees.",
    "Lower bureaucratic efficiency is associated with a higher probability that governments offer guarantees.",
    "Propensity score matching results show that disputes are more common for guaranteed contracts due to:",
    "PPP management quality and budget transparency are key determinants for a longer survival of PPPs.",
    "Empirical analysis conducted on about 6,000 PPP contract-level observations.",
    "Propensity score matching used to assess the impact of guarantees on dispute incidence.",
    "Improve budget transparency to reduce the probability that governments offer guarantees and to support longer PPP survival.",
    "Strengthen bureaucratic efficiency to lower reliance on guarantees in PPP contracts.",
    "Enhance PPP management quality to increase PPP project survival and reduce disputes.",
    "Recognize and manage adverse selection and contingent liability risks when offering guarantees on PPPs.",
    "**Wp17243**"
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