Managing Contingent Liabilities in Public-Private Partnerships : Practice in Australia, Chile, and South Africa
Contingent liabilities create management problems for governments. They have a cost, but judging what the cost is and whether it is worth incurring is difficult. Except in the case of contingent liabilities created by simple guarantees of debt, gov...
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2015
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Online Access: | http://documents.worldbank.org/curated/en/2015/12/25508831/managing-contingent-liabilities-public-private-partnerships-practice-australia-chile-south-africa http://hdl.handle.net/10986/23187 |
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okr-10986-231872021-04-23T14:04:13Z Managing Contingent Liabilities in Public-Private Partnerships : Practice in Australia, Chile, and South Africa Irwin, Timothy Mokdad, Tanya TARIFFS CONTINGENT LIABILITIES DEPOSIT LIABILITY ACCOUNTING FINANCIAL MANAGEMENT VALUATION CORPORATE TAX RATE INFORMATION TECHNOLOGY INTEREST RATE OF RETURN PUBLIC INVESTMENTS GUARANTEES GOVERNMENT SPENDING PROPERTY RIGHTS EXCHANGE OPTION DISCOUNT RATE ORIGINAL CONTRACT TREASURIES PAYMENT SYSTEM DEVELOPING COUNTRIES POLITICAL ECONOMY REVENUES LOAN DISCOUNT RENEGOTIATION TAX BUDGETING BANKRUPTCY GOVERNMENT GUARANTEES INFLATION INTERNATIONAL BANK CASH FLOWS CREDIBILITY BUDGET LACK OF TRANSPARENCY CURRENCY GOVERNMENT POLICY NATURAL DISASTER CONTRACT RENEGOTIATION PUBLIC FUNDS DEBTS CONTRACTS FINANCES EXCHANGE RATES GUARANTEE FUND OPTIONS MONETARY FUND DEBT RETURN FINANCIAL FLOWS PUBLIC FINANCE DEPOSIT INSURANCE LENDERS GROSS DOMESTIC PRODUCT NATIONAL TREASURY RULE OF LAW FINANCE FUTURE CASH FLOWS BANK POLICY PUBLIC INVESTMENT CONTINGENT LIABILITY EXPENDITURE TRANSACTIONS AUCTIONS GUARANTEE FEES EQUITY TRANSACTION INVESTORS OPPORTUNITY COST GOOD TAX RATE PRIVATE PARTY TRANSPARENCY FINANCIAL CRISIS FUTURE MARKET PRICES GOVERNMENT GUARANTEE GOVERNMENT FINANCE FOREIGN INVESTMENT INVESTMENT PROJECTS LOAN GUARANTEES CONTRACT EXPENDITURES PROPERTY BIDS PHYSICAL ASSETS ACCRUAL ACCOUNTING OPPORTUNITY COSTS BALANCE SHEET DEFAULT CONCESSION ARRANGEMENTS MARKET FOREIGN EXCHANGE MARKET VALUE SECURITIES TREASURY ACCOUNTING STANDARD SHAREHOLDERS RENEGOTIATIONS INFRASTRUCTURE CONCESSIONS INSURANCE GOVERNMENT DEBT INTERESTS SECURITY ACCOUNTING STANDARDS INVESTMENT OUTSTANDING DEBT SHARE CONTRACTUAL OBLIGATION BALANCE SHEETS PUBLIC FINANCES INFRASTRUCTURE FINANCE POLITICAL STABILITY FINANCIAL ASSETS BID REVENUE PROFIT EXPROPRIATIONS INVESTMENTS RISK MANAGEMENT AMOUNT OF DEBT PRIVATE FINANCING EXCHANGE RATE LIABILITY MANAGEMENT PROFITS LIABILITIES MULTILATERAL LENDERS GUARANTEE DEVELOPMENT BANK CASH FLOW Contingent liabilities create management problems for governments. They have a cost, but judging what the cost is and whether it is worth incurring is difficult. Except in the case of contingent liabilities created by simple guarantees of debt, governments usually can incur contingent liabilities without budgetary approval or recognition in the governments accounts. So governments may prefer contingent liabilities to other obligations. (The uncertainty surrounding contingent liabilities can work differently. It is well known that PPPs create contingent liabilities, and the International Monetary Fund (IMF), the World Bank, and others often warn of the risks. The initial reaction of a cautious Ministry of Finance may be to seek to avoid all contingent liabilities.) Management problems also arise once a government has incurred a contingent liability. Projects need to be monitored to reduce risks if possible. Spending on contingent liabilities must sometimes be forecast, despite the difficulty. 2015-12-02T19:30:21Z 2015-12-02T19:30:21Z 2010 Working Paper http://documents.worldbank.org/curated/en/2015/12/25508831/managing-contingent-liabilities-public-private-partnerships-practice-australia-chile-south-africa http://hdl.handle.net/10986/23187 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research |
repository_type |
Digital Repository |
institution_category |
Foreign Institution |
institution |
Digital Repositories |
building |
World Bank Open Knowledge Repository |
collection |
World Bank |
language |
English en_US |
topic |
TARIFFS CONTINGENT LIABILITIES DEPOSIT LIABILITY ACCOUNTING FINANCIAL MANAGEMENT VALUATION CORPORATE TAX RATE INFORMATION TECHNOLOGY INTEREST RATE OF RETURN PUBLIC INVESTMENTS GUARANTEES GOVERNMENT SPENDING PROPERTY RIGHTS EXCHANGE OPTION DISCOUNT RATE ORIGINAL CONTRACT TREASURIES PAYMENT SYSTEM DEVELOPING COUNTRIES POLITICAL ECONOMY REVENUES LOAN DISCOUNT RENEGOTIATION TAX BUDGETING BANKRUPTCY GOVERNMENT GUARANTEES INFLATION INTERNATIONAL BANK CASH FLOWS CREDIBILITY BUDGET LACK OF TRANSPARENCY CURRENCY GOVERNMENT POLICY NATURAL DISASTER CONTRACT RENEGOTIATION PUBLIC FUNDS DEBTS CONTRACTS FINANCES EXCHANGE RATES GUARANTEE FUND OPTIONS MONETARY FUND DEBT RETURN FINANCIAL FLOWS PUBLIC FINANCE DEPOSIT INSURANCE LENDERS GROSS DOMESTIC PRODUCT NATIONAL TREASURY RULE OF LAW FINANCE FUTURE CASH FLOWS BANK POLICY PUBLIC INVESTMENT CONTINGENT LIABILITY EXPENDITURE TRANSACTIONS AUCTIONS GUARANTEE FEES EQUITY TRANSACTION INVESTORS OPPORTUNITY COST GOOD TAX RATE PRIVATE PARTY TRANSPARENCY FINANCIAL CRISIS FUTURE MARKET PRICES GOVERNMENT GUARANTEE GOVERNMENT FINANCE FOREIGN INVESTMENT INVESTMENT PROJECTS LOAN GUARANTEES CONTRACT EXPENDITURES PROPERTY BIDS PHYSICAL ASSETS ACCRUAL ACCOUNTING OPPORTUNITY COSTS BALANCE SHEET DEFAULT CONCESSION ARRANGEMENTS MARKET FOREIGN EXCHANGE MARKET VALUE SECURITIES TREASURY ACCOUNTING STANDARD SHAREHOLDERS RENEGOTIATIONS INFRASTRUCTURE CONCESSIONS INSURANCE GOVERNMENT DEBT INTERESTS SECURITY ACCOUNTING STANDARDS INVESTMENT OUTSTANDING DEBT SHARE CONTRACTUAL OBLIGATION BALANCE SHEETS PUBLIC FINANCES INFRASTRUCTURE FINANCE POLITICAL STABILITY FINANCIAL ASSETS BID REVENUE PROFIT EXPROPRIATIONS INVESTMENTS RISK MANAGEMENT AMOUNT OF DEBT PRIVATE FINANCING EXCHANGE RATE LIABILITY MANAGEMENT PROFITS LIABILITIES MULTILATERAL LENDERS GUARANTEE DEVELOPMENT BANK CASH FLOW |
spellingShingle |
TARIFFS CONTINGENT LIABILITIES DEPOSIT LIABILITY ACCOUNTING FINANCIAL MANAGEMENT VALUATION CORPORATE TAX RATE INFORMATION TECHNOLOGY INTEREST RATE OF RETURN PUBLIC INVESTMENTS GUARANTEES GOVERNMENT SPENDING PROPERTY RIGHTS EXCHANGE OPTION DISCOUNT RATE ORIGINAL CONTRACT TREASURIES PAYMENT SYSTEM DEVELOPING COUNTRIES POLITICAL ECONOMY REVENUES LOAN DISCOUNT RENEGOTIATION TAX BUDGETING BANKRUPTCY GOVERNMENT GUARANTEES INFLATION INTERNATIONAL BANK CASH FLOWS CREDIBILITY BUDGET LACK OF TRANSPARENCY CURRENCY GOVERNMENT POLICY NATURAL DISASTER CONTRACT RENEGOTIATION PUBLIC FUNDS DEBTS CONTRACTS FINANCES EXCHANGE RATES GUARANTEE FUND OPTIONS MONETARY FUND DEBT RETURN FINANCIAL FLOWS PUBLIC FINANCE DEPOSIT INSURANCE LENDERS GROSS DOMESTIC PRODUCT NATIONAL TREASURY RULE OF LAW FINANCE FUTURE CASH FLOWS BANK POLICY PUBLIC INVESTMENT CONTINGENT LIABILITY EXPENDITURE TRANSACTIONS AUCTIONS GUARANTEE FEES EQUITY TRANSACTION INVESTORS OPPORTUNITY COST GOOD TAX RATE PRIVATE PARTY TRANSPARENCY FINANCIAL CRISIS FUTURE MARKET PRICES GOVERNMENT GUARANTEE GOVERNMENT FINANCE FOREIGN INVESTMENT INVESTMENT PROJECTS LOAN GUARANTEES CONTRACT EXPENDITURES PROPERTY BIDS PHYSICAL ASSETS ACCRUAL ACCOUNTING OPPORTUNITY COSTS BALANCE SHEET DEFAULT CONCESSION ARRANGEMENTS MARKET FOREIGN EXCHANGE MARKET VALUE SECURITIES TREASURY ACCOUNTING STANDARD SHAREHOLDERS RENEGOTIATIONS INFRASTRUCTURE CONCESSIONS INSURANCE GOVERNMENT DEBT INTERESTS SECURITY ACCOUNTING STANDARDS INVESTMENT OUTSTANDING DEBT SHARE CONTRACTUAL OBLIGATION BALANCE SHEETS PUBLIC FINANCES INFRASTRUCTURE FINANCE POLITICAL STABILITY FINANCIAL ASSETS BID REVENUE PROFIT EXPROPRIATIONS INVESTMENTS RISK MANAGEMENT AMOUNT OF DEBT PRIVATE FINANCING EXCHANGE RATE LIABILITY MANAGEMENT PROFITS LIABILITIES MULTILATERAL LENDERS GUARANTEE DEVELOPMENT BANK CASH FLOW Irwin, Timothy Mokdad, Tanya Managing Contingent Liabilities in Public-Private Partnerships : Practice in Australia, Chile, and South Africa |
description |
Contingent liabilities create management
problems for governments. They have a cost, but judging what
the cost is and whether it is worth incurring is difficult.
Except in the case of contingent liabilities created by
simple guarantees of debt, governments usually can incur
contingent liabilities without budgetary approval or
recognition in the governments accounts. So governments may
prefer contingent liabilities to other obligations. (The
uncertainty surrounding contingent liabilities can work
differently. It is well known that PPPs create contingent
liabilities, and the International Monetary Fund (IMF), the
World Bank, and others often warn of the risks. The initial
reaction of a cautious Ministry of Finance may be to seek to
avoid all contingent liabilities.) Management problems also
arise once a government has incurred a contingent liability.
Projects need to be monitored to reduce risks if possible.
Spending on contingent liabilities must sometimes be
forecast, despite the difficulty. |
format |
Working Paper |
author |
Irwin, Timothy Mokdad, Tanya |
author_facet |
Irwin, Timothy Mokdad, Tanya |
author_sort |
Irwin, Timothy |
title |
Managing Contingent Liabilities in Public-Private Partnerships : Practice in Australia, Chile, and South Africa |
title_short |
Managing Contingent Liabilities in Public-Private Partnerships : Practice in Australia, Chile, and South Africa |
title_full |
Managing Contingent Liabilities in Public-Private Partnerships : Practice in Australia, Chile, and South Africa |
title_fullStr |
Managing Contingent Liabilities in Public-Private Partnerships : Practice in Australia, Chile, and South Africa |
title_full_unstemmed |
Managing Contingent Liabilities in Public-Private Partnerships : Practice in Australia, Chile, and South Africa |
title_sort |
managing contingent liabilities in public-private partnerships : practice in australia, chile, and south africa |
publisher |
World Bank, Washington, DC |
publishDate |
2015 |
url |
http://documents.worldbank.org/curated/en/2015/12/25508831/managing-contingent-liabilities-public-private-partnerships-practice-australia-chile-south-africa http://hdl.handle.net/10986/23187 |
_version_ |
1764453147758034944 |