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The Effects of the Financial Crisison Public-Private Partnerships

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  • International Monetary Fund

Abstract

The paper investigates the impact of the global financial crisis on public-private partnerships (PPPs) and the circumstances under which providing support to new and existing projects is justified. Based on country evidence, cost of and access to finance are found to be the main channels of transmission of the financial crisis, affecting in particular pipeline PPP projects. Possible measures to help PPPs during the crisis include contract extensions, output-based subsidies, revenue enhancements and step-in rights. To limit government's exposure to risk, while preserving private partner's efficiency incentives, intervention measures should be consistent with the wider fiscal policy stance, be contingent on specific circumstances, and be adequately costed and budgeted. Governments should be compensated for taking on additional risk.

Suggested Citation

  • International Monetary Fund, 2009. "The Effects of the Financial Crisison Public-Private Partnerships," IMF Working Papers 2009/144, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2009/144
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    References listed on IDEAS

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    1. Antonio Estache & Ellis Juan & Lourdes Trujillo, 2011. "Public–Private Partnerships in Transport," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 30, Edward Elgar Publishing.
    2. Timothy Irwin, 2003. "Public Money for Private Infrastructure : Deciding When to Offer Guarantees, Output-based Subsidies, and Other Fiscal Support," World Bank Publications - Books, The World Bank Group, number 15117, December.
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    Cited by:

    1. Carmona, Miguel, 2010. "The regulatory function in public-private partnerships for the provision of transport infrastructure," Research in Transportation Economics, Elsevier, vol. 30(1), pages 110-125.
    2. Martins, José & Marques, Rui Cunha & Cruz, Carlos Oliveira, 2014. "Maximizing the value for money of PPP arrangements through flexibility: An application to airports," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 72-80.
    3. Tsamboulas, D. & Verma, A. & Moraiti, P., 2013. "Transport infrastructure provision and operations: Why should governments choose private–public partnership?," Research in Transportation Economics, Elsevier, vol. 38(1), pages 122-127.
    4. Moschouli, Eleni & Soecipto, Raden Murwantara & Vanelslander, Thierry, 2019. "Cost performance of transport infrastructure projects before and after the global financial crisis (GFC): Are differences observed in the conditions of project performance?," Research in Transportation Economics, Elsevier, vol. 75(C), pages 21-35.
    5. Fleta-Asín, Jorge & Muñoz, Fernando, 2020. "How does risk transference to private partner impact on public-private partnerships’ success? Empirical evidence from developing economies," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    6. Burke, Richard & Demirag, Istemi, 2015. "Changing perceptions on PPP games: Demand risk in Irish roads," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 27(C), pages 189-208.
    7. Mell, Ian, 2020. "The impact of austerity on funding green infrastructure: A DPSIR evaluation of the Liverpool Green & Open Space Review (LG&OSR), UK," Land Use Policy, Elsevier, vol. 91(C).
    8. Nikolić, Ana & Roumboutsos, Athena & Stanković, Jelena Ćirilović & Mladenović, Goran, 2020. "Has the latest global financial crisis changed the way road public-private partnerships are funded? A comparison of Europe and Latin America," Utilities Policy, Elsevier, vol. 64(C).
    9. Mark Hellowell & Veronica Vecchi & Stefano Caselli, 2015. "Return of the state? An appraisal of policies to enhance access to credit for infrastructure-based PPPs," Public Money & Management, Taylor & Francis Journals, vol. 35(1), pages 71-78, January.

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