PPP Distress and Fiscal Contingent Liabilities in South Asia

Since the early 1990s, public-private partnerships (PPPs) in infrastructure provision have been expanding around the world and in South Asia. Well-structured PPPs can unleash efficiency gains in the provision of infrastructure. But PPPs create liab...

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Main Authors:	Herrera Dappe, Matias, Melecky, Martin, Turkgulu, Burak
Format:	Working Paper
Language:	English English
Published:	World Bank, Washington, DC 2022
Subjects:	PUBLIC-PRIVATE PARTNERSHIPS (PPP) INFRASTRUCTURE EFFICIENCY GAINS EARLY TERMINATION OF CONTRACTS PRIVATE INVESTMENT IN UTILITIES SURVIVAL ANALYSIS VALUE AT RISK PRIVATE WATER PROVISION PPP CONTRACT DESIGN
Online Access:	http://documents.worldbank.org/curated/en/099526108032233729/IDU01bffdd770d209042f50bd54087dae7e38cbe http://hdl.handle.net/10986/37831

id	okr-10986-37831
recordtype	oai_dc
spelling	okr-10986-378312022-08-05T05:10:31Z PPP Distress and Fiscal Contingent Liabilities in South Asia Herrera Dappe, Matias Melecky, Martin Turkgulu, Burak PUBLIC-PRIVATE PARTNERSHIPS (PPP) INFRASTRUCTURE EFFICIENCY GAINS EARLY TERMINATION OF CONTRACTS PRIVATE INVESTMENT IN UTILITIES SURVIVAL ANALYSIS VALUE AT RISK PRIVATE WATER PROVISION PPP CONTRACT DESIGN Since the early 1990s, public-private partnerships (PPPs) in infrastructure provision have been expanding around the world and in South Asia. Well-structured PPPs can unleash efficiency gains in the provision of infrastructure. But PPPs create liabilities for governments, including contingent liabilities. Providing infrastructure through PPPs is preferred to public provision if the efficiency gains offset the higher cost of private financing and the unexpected public liabilities that PPPs may create. This paper attempts to assess the fiscal risks from contingent liabilities assumed by South Asian governments owing to their current stock of PPPs in infrastructure. First, it analyzes the drivers of PPP distress. Second, it simulates scenarios of fiscal risks for South Asian governments from risky PPPs. Third, it studies specific PPP contract designs and their relationship with early termination in South Asia to draw lessons for future PPP contract structuring. 2022-08-04T15:30:40Z 2022-08-04T15:30:40Z 2022-08 Working Paper http://documents.worldbank.org/curated/en/099526108032233729/IDU01bffdd770d209042f50bd54087dae7e38cbe http://hdl.handle.net/10986/37831 English en Policy Research Working Papers;10137 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Policy Research Working Paper Publications & Research South Asia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English English
topic	PUBLIC-PRIVATE PARTNERSHIPS (PPP) INFRASTRUCTURE EFFICIENCY GAINS EARLY TERMINATION OF CONTRACTS PRIVATE INVESTMENT IN UTILITIES SURVIVAL ANALYSIS VALUE AT RISK PRIVATE WATER PROVISION PPP CONTRACT DESIGN
spellingShingle	PUBLIC-PRIVATE PARTNERSHIPS (PPP) INFRASTRUCTURE EFFICIENCY GAINS EARLY TERMINATION OF CONTRACTS PRIVATE INVESTMENT IN UTILITIES SURVIVAL ANALYSIS VALUE AT RISK PRIVATE WATER PROVISION PPP CONTRACT DESIGN Herrera Dappe, Matias Melecky, Martin Turkgulu, Burak PPP Distress and Fiscal Contingent Liabilities in South Asia
geographic_facet	South Asia
relation	Policy Research Working Papers;10137
description	Since the early 1990s, public-private partnerships (PPPs) in infrastructure provision have been expanding around the world and in South Asia. Well-structured PPPs can unleash efficiency gains in the provision of infrastructure. But PPPs create liabilities for governments, including contingent liabilities. Providing infrastructure through PPPs is preferred to public provision if the efficiency gains offset the higher cost of private financing and the unexpected public liabilities that PPPs may create. This paper attempts to assess the fiscal risks from contingent liabilities assumed by South Asian governments owing to their current stock of PPPs in infrastructure. First, it analyzes the drivers of PPP distress. Second, it simulates scenarios of fiscal risks for South Asian governments from risky PPPs. Third, it studies specific PPP contract designs and their relationship with early termination in South Asia to draw lessons for future PPP contract structuring.
format	Working Paper
author	Herrera Dappe, Matias Melecky, Martin Turkgulu, Burak
author_facet	Herrera Dappe, Matias Melecky, Martin Turkgulu, Burak
author_sort	Herrera Dappe, Matias
title	PPP Distress and Fiscal Contingent Liabilities in South Asia
title_short	PPP Distress and Fiscal Contingent Liabilities in South Asia
title_full	PPP Distress and Fiscal Contingent Liabilities in South Asia
title_fullStr	PPP Distress and Fiscal Contingent Liabilities in South Asia
title_full_unstemmed	PPP Distress and Fiscal Contingent Liabilities in South Asia
title_sort	ppp distress and fiscal contingent liabilities in south asia
publisher	World Bank, Washington, DC
publishDate	2022
url	http://documents.worldbank.org/curated/en/099526108032233729/IDU01bffdd770d209042f50bd54087dae7e38cbe http://hdl.handle.net/10986/37831
_version_	1764487949801488384

PPP Distress and Fiscal Contingent Liabilities in South Asia

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