The ability to value and assess risk associated with PPP is often created within the debt management function of the ministry of finance, but it might also be tasked to a PPP unit in some other part of Government, for example planning or economic coordination. The assessment of Government liabilities should be assessed at different stages of the project, to confirm what level of liabilities represents value for money for the Government for a given project.
The Government's objective is to expose liabilities associated with PPP projects to an appropriate level of scrutiny:35
• Creating risk awareness-for example collecting information on PPP contracts and using it to discuss fiscal implications of PPP projects.
• Disclosure of PPP risks-promoting transparency of PPP contracts and the fiscal risks associated with those contracts.
• Risk management-coordinating or even centralizing fiscal risk monitoring and authorization, and providing for auditing mechanisms of the Government's risk analysis and risk management functions.
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35 Adapted from Public-Private Partnerships in the New EU Member States: Managing Fiscal Risks, World Bank Working Paper No. 114 (2007).