The Future of PPPs in the Western Balkans
IMF Working Papers, February 10, 2023
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Bibliographic details
- Authors: Jan Kees Martijn, Yan M Sun, William Lindquist, Yen N Mooi, Ezgi O. Ozturk, Hoda Selim, Armine Khachatryan
- Published: February 10, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400234439.001
Overview
- Public-Private Partnerships (PPPs) are increasingly an important vehicle for several Western Balkan countries to increase investment to reduce their infrastructure gaps.
- Well-designed and implemented PPPs can deliver benefits, but they carry potential for large fiscal risks and increased costs if not managed well.
- Countries with successful PPP programs typically have a clear and well-designed PPP governance framework that covers all stages of the PPP life cycle.
- Western Balkan countries need to address gaps in their PPP governance frameworks to fully reap the potential benefits from PPPs.
Key findings
- PPPs are an important mechanism to boost investment and close infrastructure gaps in the Western Balkans.
- Poorly managed PPPs can generate large fiscal risks and increase overall costs.
- Success in PPP programs is associated with a clear, well-designed governance framework spanning the entire PPP life cycle.
Governance gaps and fiscal risks
- Identified problem: gaps in PPP governance frameworks across Western Balkan countries.
- Consequence: without addressing these gaps, PPPs may lead to elevated fiscal risks and higher costs rather than the intended investment and efficiency gains.
- Effective PPP governance requires coverage of all stages of the PPP life cycle, including design, procurement, contract management, and fiscal risk oversight.
Policy recommendations (implied by findings)
- Strengthen PPP governance frameworks to cover all stages of the PPP life cycle.
- Improve public financial management (PFM) practices as they relate to PPPs and public investment spending.
- Address PPP legislation and procurement shortcomings to mitigate fiscal risks of public-private partnerships.
Subject tags and keywords (as presented)
- Subject: Expenditure, Fiscal risks, PPP legislation, Public financial management (PFM), Public investment spending, Risks of public-private partnership
- Keywords: Europe, Fiscal risks, future of PPP, Global, governance framework, Infrastructure, PPP legislation, PPP life cycle, PPP procurement, PPP project, Public investment spending, Public-private partnerships, Risks of public-private partnership, Western Balkans
Jan Kees Martijn, Yan M Sun, William Lindquist, Yen N Mooi, Ezgi O. Ozturk, Hoda Selim, Armine Khachatryan. "The Future of PPPs in the Western Balkans", IMF Working Papers 2023, 031 (2023), February 10, 2023. DOI: https://doi.org/10.5089/9798400234439.001
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- Working Paper