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...

Full description

Bibliographic Details
Main Authors:	Irwin, Timothy, Mokdad, Tanya
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	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
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

id	okr-10986-23187
recordtype	oai_dc
spelling	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

Managing Contingent Liabilities in Public-Private Partnerships : Practice in Australia, Chile, and South Africa

Similar Items