Public-Private Partnerships in Europe and Central Asia : Designing Crisis-Resilient Strategies and Bankable Projects.
Title:
Public-Private Partnerships in Europe and Central Asia : Designing Crisis-Resilient Strategies and Bankable Projects.
Author:
Cuttaree, Vickram.
ISBN:
9780821387047
Personal Author:
Physical Description:
1 online resource (144 pages)
Contents:
CONTENTS -- ACKNOWLEDGMENTS -- ABBREVIATIONS -- EXECUTIVE SUMMARY -- PART I - BACKGROUND, APPROACH, AND SECTOR TRENDS -- 1.INTRODUCTION -- Context of the Study -- Approach to the Study -- Report Structure -- 2. BENEFITS AND RISKS OF PPP -- Policy: What Are Public-Private Partnerships? -- Strategy: Designing Support Frameworks and Building Capacity -- 3.OVERVIEW OF RECENT TRENDS IN PPP INVESTMENT -- Global Trends in PPP Investment in Infrastructure -- PPP Situation in Europe and Central Asia -- Global Improvement in PPP Activity in 2009 -- Recent Developments in ECA Countries -- Developments in Western Europe and Rest of the World -- PART II - HOW THE CRISIS HAS CHANGED THE PPP MARKET -- 4.IMPACT OF THE CRISIS ON GOVERNMENT FINANCING -- Economic and Fiscal Impact of the Crisis in ECA -- 5.IMPACT OF THE CRISIS ON PPP PROJECTS -- Policy: Impact on Public Investment -- Strategy: Impact on Project Scope and Finance -- Implementation: Impact on Commercial Structure and Procurement -- PART III - RECOMMENDATIONS FOR GOVERNMENTS -- 6.RECOMMENDATIONS FOR POST-CRISIS PPP ENVIRONMENT -- Policy -- Strategy -- Improving the PPP Framework -- Implementation -- Project Preparation -- Procurement and Financial Close -- 7.MECHANISMS AVAILABLE TO GOVERNMENT TO SUPPORT PPP PROJECTS -- Cluster A: Project Financing -- Cluster B: Risk Management -- Cluster C: Procurement -- Cluster D: Project Design -- 8.CONCLUSION: SHORT- AND MEDIUM-TERM RESPONSES -- REFERENCES -- ANNEX I: LIST OF INTERVIEWS CONDUCTED -- ANNEX II: PPP INFRASTRUCTURE FINANCE AND PRE-CRISIS EXPERIENCE -- ANNEX III: PRINCIPLES IN INFRASTRUCTURE AND PROJECT FINANCE -- ANNEX IV: IMPACT OF THE FINANCIAL CRISIS ON FISCAL SPACE AND INFRASTRUCTURE SPENDING IN ECA -- ANNEX V: INSTRUMENT -- BOXES -- Box 3-1: Romania's Comarnic-Brasov Highway Project.
Box 3-2: Slovak Republic - Flexibility in Financing Terms and Government Payments -- Box 3-3: St. Petersburg - Pulkovo Expansion Project -- Box 3-4: Armenia Water Sector - A Successful Progressive Approach to Use of PPP -- Box 3-5: Recent PPP Experience in Brazil, India, and Mexico -- Box 5-1: Latvia's Fiscal Restrictions and Impact on PPP -- Box 5-2: Russia's Privatization Plans in the Transport Sector -- Box 5-3: Spain and Portugal - A Record of Rapid Financial Closure -- Box 5-4: Investment Funds and Other Government-funded Solutions -- Box 7-1: Evolution in Contract Design: CREMA - Phases I and II -- Box 7-2: Refinancing Gain - HM Treasury Guidance -- Box 7-3: Hedging and Concessionaire's Capital Grant -- Box 7-4: Indexation and Compensation to Canada Line -- Box II-1: Eurostat Accounting of PPP Projects -- Box II-2: South Africa - Assessing PPP Transactions -- Box II-3: Chile Management of Contingent Liabilities -- Box III-1: Environmental and Social impacts of PPPs and the Equator Principles -- Box III-2: Examples of Financial Instruments to Support PPP -- FIGURES -- Figure 1-1. Chapter Outline -- Figure 2-1: Decision Matrix for PPP Projects -- Figure 2-2: Traditional PPP Framework -- Figure 3-1: Global PPP Investment -- Figure 3-2: Global PPP Investment in Transport -- Figure 3-3: PPP Sector Investments and Projects by Sector in ECA -- Figure 3-4: PPP Investment and Number of Projects in Other Regions -- Figure 3-5: PPP Investment in Transport in ECA -- Figure 3-6: PPP Investment in Energy in ECA -- Figure 3-7: PPP Investment in Water and Sanitation in ECA -- Figure 3-8: Recent Global Trends in PPP Investment -- Figure 3-9: Recent Regional Trends in PPP Investment -- Figure 3-10: Number of PPP Projects in Tender (Fall 2009) -- Figure 4-1: Fiscal Balance, Percentage of GDP (2005-2013).
Figure 4-2: Real GDP Growth, Annual Percentage Rate (2005-2013) -- Figure 4-3: Contributions of Changes in Deficits, 2008-2009, % of GDP (median values) -- Figure 4-5: EMBIG Europe Region - Spread over US Treasury in Basis Points (bps) -- Figure 4-6: Some Government Bond Yields in ECA -- Figure 4-7: Currency Depreciation in Some European Countries -- Figure 5-1: Impact of the Crisis on PPP Projects -- Figure 5-2: Changes in PPP Market -- Figure 5-3: Pipeline of PPP Projects in Some ECA Countries -- Figure 5-4: Time to Reach Financial Close in 2008-09 in EU and ECA (Highways) -- Figure 5-5: Number of Banks Involved in 2008-09 in EU and ECA (Highways) -- Figure 5-6: Effect of Shorter Maturity on Government Contribution -- Figure 6-1: Framework for Assessing Country Risk -- Figure 6-2: Updated Framework for PPP -- Figure 6-3: Framework for PPP Strategy -- Figure 6-4: New Framework for PPP -- Figure 6-5: Framework for Identifying PPP Projects -- Figure 6-6: Policies/Design Influencing Investment Needs of an Urban Transport Project -- Figure 7-1: Summary of Supporting Mechanisms to PPP Program -- Figure II-1: Cash Flow for PPP and Publicly Financed Projects -- Figure II-2: Sources of Revenue for PPP and Public Highway -- Figure IV-1: Fiscal Balance, Percentage of GDP (2005-13) -- Figure IV-2: Real GDP Growth, Annual Percentage Rate (2005-13) -- Figure IV-3: General Government Revenue, 2000-07 (% of GDP) -- Figure IV-4: General Government Spending, 2000-07 (% of GDP) -- Figure IV-5: Improving Fiscal Balances 2000-07 -- Figure IV-6: Contributions of Changes in Deficits, 2008-09, % of GDP (median values) -- Figure IV-7: Fiscal Space in ECA Countries in 2007 -- Figure IV-8: Spending on Social Assistance and Insurance, % of GDP -- Figure IV-9: Percentage of Firms Indicating that Electricity is Some Form of Constraint to Business in ECA.
Figure IV-10: Economic Classification of Government Expenditures, 2008 -- Figure IV-11: High Social Spending Crowds Out Spending on Infrastructure in ECA -- MAPS -- Map IV-1: Difference in Level of Capital Expenditure - 2008 to 2009 (% of GDP) -- Map IV-2: Relative Change in Capital Spending as a Percent of Government Spending 2008 to 2009 -- TABLES -- Table 3-1: Sources of Funding for Projects Reaching Financial/Contractual Close during January 2008-June 2009 -- Table 4-1: Summary of Crisis Effects on Government -- Table III-1: Factors Influencing Project Bankability -- Table IV-1: Trends in Capital Expenditure (% of GDP) in ECA 2000-01.
Abstract:
The global financial crisis that began in late 2008 has set back ambitious infrastructure development plans among many countries in Europe and Central Asia (ECA). Many such plans relied on Public-Private Partnerships (PPP) arrangements. Furthermore, the financial crisis resulted in sharp declines in gross domestic product (GDP) and country?s deteriorating fiscal space restricted the scope for maintaining the level of investment or introducing counter-cyclical measures driven by public sector investment in infrastructure. Soaring levels of public debt, limited room to cut expenditures, and lower tax receipts due to slower than expected economic growth will mean that the ?fiscal space? in the region to make public investments in infrastructure will be strained in the coming years. The ability of many ECA country governments to expand expenditure any further, even for productive investments in infrastructure, will thus prove challenging.Nevertheless, the year 2010 saw some countries and cities reaching financial close on multi-billion projects while others are still struggling to close their first PPP project in highway. The comparison of the Pulkovo Airport in Russia and the Comarnic-Brasov Highway in Romania is an illustration of this situation. On one hand St Petersburg developed a robust PPP project that involved the rehabilitation of an existing asset with established demand. On the other hand, the Romania examples show how projects with large capital requirements with unknown demand risk are still considered risky for the private sector, especially in the context of reduced liquidity from the financial crisis.This study shows that PPP financing remains viable and can bring value to the economy, despite the difficulties that projects faced. The global financial crisis has created new opportunities for the ECA Region to refocus PPP projects on
value-for-money and financial sustainability, as the primary drivers for private participation, and using the range of options and innovative approaches discussed above.
Local Note:
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2017. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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