Public-private partnerships (PPPs) can sometimes be perceived as a means for delivering infrastructure for free or a mechanism to overcome fiscal constraints.
These misconceptions lead to several challenges, such as the tendency of governments to overlook or ignore the long-term fiscal implications of PPP contracts, which can lead to fiscal sustainability issues and a lack of transparency regarding the real costs of PPP projects.
The COVID-19 pandemic has further exacerbated these challenges, exposing the need for better fiscal risk management frameworks in PPPs. The following reports aim to provide guidance to World Bank client countries, including low-income and fragile economies, on improving fiscal risk management and treatment of fiscal commitments and contingent liabilities (FCCL) arising from PPP projects to build better infrastructure following the pandemic.
Volume I highlights and contextualizes the main findings from a set of case studies that assessed the PPP fiscal risk management framework in select countries. Volume II contains the detailed case studies on which Volume I is based.