Fiscal Risks and Costs of Public-Private Partnerships

Abstract

No AccessMar 2023Fiscal Risks and Costs of Public-Private PartnershipsAuthors/Editors: Matías Herrera Dappe, Vivien Foster, Aldo Musacchio, Teresa Ter-Minassian, Burak TurkguluMatías Herrera DappeSearch for more papers by this author, Vivien FosterSearch for more papers by this author, Aldo MusacchioSearch for more papers by this author, Teresa Ter-MinassianSearch for more papers by this author, Burak TurkguluSearch for more papers by this authorhttps://doi.org/10.1596/978-1-4648-1937-7_ch4AboutView ChaptersPDF (1.5 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract: Presents empirical evidence on the magnitude, incidence, and determinants of fiscal risks from guarantees, renegotiations, and early terminations of energy and transport public-private partnerships (PPPs) and on the frameworks to manage fiscal risks from PPPs. A large share of PPP contracts see renegotiation, leading to a small but frequent drain of fiscal resources. The annual fiscal cost of renegotiation averages about 0.2 percent of GDP in the countries studied. The fiscal risks from demand guarantees tend to remain smaller, particularly if projects prove properly structured. For electricity and transport PPPs, early termination proves less frequent than renegotiation, with only about 3 percent of PPPs in developing countries seeing early termination—a small, but costly share. The power sector has attracted more private capital through PPPs than the transport sector. However, transport PPPs have a higher rate of renegotiation, see renegotiation sooner, and remain more likely to result in direct fiscal transfers than power PPPs. Previous chapterNext chapter FiguresreferencesRecommendeddetails View Published: March 2023ISBN: 978-1-4648-1937-7e-ISBN: 978-1-4648-1938-4 Copyright & Permissions Related CountriesChileColombiaPeruPortugalRelated TopicsEnergyInfrastructure Economics and FinanceMacroeconomics and Economic GrowthPublic Sector Development KeywordsCASE STUDYINFRASTRUCTURE MAINTENANCEINFRASTRUCTURE INVESTMENTSTATE-OWNED ENTERPRISESSOESPUBLIC-PRIVATE PARTNERSHIPRISK MANAGEMENTPUBLIC INVESTMENTINVESTMENT EFFICIENCYENERGY EFFICIENCYTRANSPORTATION INDUSTRYENERGY SECTOR PDF DownloadLoading ...