This course is designed to provide practical guidance to participants on how to implement the framework for managing fiscal commitments and contingent liabilities associated with several projects based on public private partnership arrangements (PPPs). Projects that on the surface appears as an attractive deal to engage the private sector in can wind up as an unmanageable financial burden for the country and its finance officials.
Ample evidence strongly support the position that efficient management and analysis of Fiscal Commitments and Contingent Liability of projects is tightly linked to excellent outcomes of projects undertaken on public private partnership arrangements. This position is equally held by several developmental and multilateral agencies as the best strategy to address many of the drawbacks to effective and efficient planning and implementation of public private partnership projects.
Expected Learning Outcomes
At the end of the training, participants should:
- Understand the various frameworks for monitoring, quantifying, managing, analyzing, and reviewing the costs and risks of contingent liabilities associated with proposed public private partnership projects;
- Be able to apply modern accrual-accounting standards for financial reporting, and avoid the temptation of using public private partnership to disguise fiscal obligations;
- Be able to adopt/deploy the frameworks for dealing with risks or costs associated with Contingent liability such as scenario analysis and probabilistic analysis;
- Be able to effectively monitor fiscal commitments and budgeting for private public partnership projects;
- Be able to prepare the economic appraisal of projects in order to determine the fiscal implications of proposed private public partnership projects;
- Understand the key strategies required for identifying and estimating the cost of fiscal commitments as part of project preparation
- Understand and be able to effectively monitor and adequately respond to fiscal commitments related to project risks;
- Analyze and estimate the direct fiscal supports and the guarantees on key risk variables of fiscal commitment.