Key References: Public Financial Management for PPPs

Reference

Description

Polackova, H. (1998) Government Contingent Liabilities: A Hidden Risk to Fiscal Stability, Policy Research Working Paper 1989, World Bank

This paper provides the conceptual structure used by many subsequent articles to describe different types of government liabilities-distinguishing between contingent and direct liabilities, and explicit and implicit liabilities

Schwartz, Corbacho & Funke (eds.) (2008) Public Investment and Public-Private Partnerships: Addressing Infrastructure Challenges and Managing Fiscal Risks, International Monetary Fund

A collection of papers on managing the fiscal impact of PPPs, drawing form an IMF conference held in Budapest in 2007. Part Two: Fiscal Risks from PPPs, and Part Four: PPP Accounting, Reporting, and Auditing are particularly relevant to public financial management for PPPs

Organization for Economic Cooperation and Development (2008) Public-Private Partnerships: In Pursuit of Risk Sharing and Value for Money, Paris

The book identifies best practices for maximizing value-for-money for PPP projects, including accounting for fiscal impacts and affordability. The book also covers issues with regulatory reform, governance, and developing institutional capacity

Tim Irwin & Tanya Mokdad (2010) Managing Contingent Liabilities in Public-Private Partnerships: Practice in Australia, Chile, and South Africa, World Bank

Describes the approach in the State of Victoria, Australia, Chile, and South Africa, to approvals analysis, and reporting of contingent liabilities (and other fiscal obligations) under PPP projects, and draws lessons for other countries

Tim Irwin (2007) Government Guarantees: Allocating and Valuing Risk in Privately Financed Infrastructure Projects, World Bank

This report covers topics relating to fiscal impacts of PPP projects and provides frameworks to guide policymakers. It offers lessons learned in managing liabilities, direct or contingent, and case studies

Liu, L. & Pradelli, J. (2012) Financing Infrastructure and Monitoring Fiscal Risks at the Subnational Level, World Bank Policy Research Working Paper 6069

The paper proposes a more rigorous monitoring framework of fiscal risks imposed by PPP debt by using a minimum set of five sub-national debt indicators which also takes into account SPV's debt

Posner, Ryu & Tkechenko (2008) Public-Private Partnerships: The Relevance of Budgeting, 29TH Annual Meeting of Senior Budget Officials, Organization for Economic Development and Cooperation, Vienna, Austria

The report examines the budgetary treatment and issues raised by PPPs. It reviews the unique budgetary and accounting issues posed by privately financed capital services

World Bank (2012) Best Practices in Public-Private Partnerships Financing in Latin America: the role of subsidy mechanisms

The report provides a framework for why subsidies are sometimes needed for PPPs. The report has case studies of PPP subsidy programs in Brazil, Colombia, Mexico, and India

Cebotari, A. (2008) Contingent Liabilities: Issues and Practice, Working Paper WP/08/245, International Monetary Fund

A seminal paper on managing contingent liabilities, including to PPP projects. Includes case studies to illustrate management challenges and practices from different countries and issues. These case studies also highlight best practices

Jay-Hyung Kim, Jungwook Kim, Sung Hwan Shin & Seung-yeon Lee (2011) PPP Infrastructure Projects: Case Studies from the Republic of Korea, Asian Development Bank

This report reviews the PPP program in Korea, including case studies of BTO and BTL PPP projects

International Monetary Fund (2001) Government Finance Statistics Manual

The IMF guidelines on how to report government fiscal statistics

International Monetary Fund (2007) Manual on Fiscal Transparency

Manual for public sector disclosure of fiscal reporting. The manual provides a framework for responsibilities for transparency, the transparency of the budget process, and openness and integrity of information

Organization for Economic Cooperation and Development (2002) Best Practices in Budget Transparency, Paris

A tool designed to help countries to increase transparency in their budget process, based on best practices

Bernardin Akitoby, Richard Hemming & Gerd Schwartz (2007) Public Investment and Public-Private Partnerships, Economic Issues 40, International Monetary Fund

A short booklet describing the implications of PPPs for public investment, including how PPP commitments should be managed and controlled

South Africa, National Treasury (2004) National Treasury PPP Manual Module 4: PPP Feasibility Study, Johannesburg

Part 6 "Demonstrate Affordability" describes the methodology and requirements to demonstrate affordability of a PPP project

Australia, Department of Treasury & Finance (2010) National PPP Guidelines: Partnerships Victoria Requirements (Version 2), Melbourne, State of Victoria

These PPP guidelines set out the objectives, principles, and processes for the PPP program in the State of Victoria, Australia. The guidelines highlight the need for a comprehensive test of affordability for the project before project is considered

Colombia, El Congreso (1998) Ley 448 de 1998, Bogotá

Establishes the Contingent Liabilities Fund, defines where the resources will come from, states how its operative costs will be covered, and describes how it will monitor the contingent liabilities throughout the duration of the project.

Peru, Congreso de la República (2008) Decreto Legislativo N° 1012, Lima

Sets out the entire PPP process (from appraisal to tendering and the implementing the contract), and it also defines the institutional framework for PPPs in infrastructure-this includes defining the role of the Ministry of Finance and the PPP promotion Agency PROINVERSION)

Brazil, Congresso Nacional (2004) Lei N° 11079, Brasília

Sets out the tendering process and assigns roles for the Ministry of Finance, the Ministry of Planning, and establishes the Federal PPP Management Council. The law also sets the limits of the government´s financial commitments

Brazil, São Paulo Assembléia Legislativa (2004) Lei 11688/04, São Paulo

Establishes how the CPP is funded, its composition, organizational structure, and its role

Brazil, Governador do Estado de São Paulo (2004) Decreto 48867/04 | Decreto N° 48.867, São Paulo

Defines in detail the specific duties of the CPP, including the management of the CPP fund

Republic of Korea, Ministry of Strategy and Finance (2011) Basic Plan for Public Private Partnerships, Seoul

Sets the PPP policy, identifies the areas of PPP project development, and specifies the legal framework governing the PPP procurement process.

International Federation of Accountants (2011) International Public Sector Accounting Standard 32 - Service Concession Agreements: Grantor, New York

Sets out the accounting requirements for the government party to a PPP contract. Specifies when and how PPP assets and liabilities should be recognized as assets and liabilities of the government

International Federation of Accountants (2011) International Public Sector Accounting Standard 32 At a Glance-Service Concession Agreements: Grantor, New York 

Provides an overview of the IPSAS Standard 32 described above

Chile, Ministerio de Hacienda (2010) Informe de Pasivos Contingentes 2010, Santiago

Describes the conceptual framework for assessing contingent liabilities and the government's contingent liability exposure in the given year. This includes quantitative information (maximum value and expected cost) on government guarantees to PPP projects (concessions)

European PPP Expertise Center (2010) Eurostat Treatment of Public-Private Partnerships: Purposes, Methodology and Recent Trends, Luxembourg

Clarifies the process for determining the impact of PPPs on government debt and deficit, for EU countries.