Copyright Page
© 2023 International Monetary Fund
[WP/YY/XX]
IMF Working Paper
European Department
The Future of PPPs in the Western Balkans
Prepared by Jan Kees Martijn, Yan Sun, Armine Khachatryan, William Lindquist, Yen Mooi, Ezgi Ozturk, and Hoda Selim.
Authorized for distribution by Jörg Decressin
February 2023
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
ABSTRACT: Public-Private Partnerships (PPPs) are increasingly an important vehicle for several Western Balkan countries to increase investment to reduce their infrastructure gaps. While there are benefits to well-designed and implemented PPPs, they also carry a potential for large fiscal risks and increased costs if not managed well. Countries with successful PPP programs typically benefit from a clear and well-designed PPP governance framework, which covers all stages of the PPP life cycle. Western Balkan countries need to address gaps in their PPP governance frameworks to fully reap the potential benefits from PPPs.
| Keywords: | Infrastructure, Public-private partnerships, Western Balkans |
| Authors' E-Mail Addresses: |
| Keywords: | Infrastructure, Public-private partnerships, Western Balkans |
| Authors' E-Mail Addresses: |
* The authors would like to thank Shiqing Hua and Nisha Samuel for excellent research assistance and support. Our gratitude also to Oana Luca, Alex Culiuc, Anvar Musayev, Anton Mangov, the country teams, and local offices, for their inputs and assistance. The paper benefited from helpful insights and comments from Arturo Navarro, Natalie Manuilova, and Olya Kroytor, for which we are thankful.
Title Page
WORKING PAPERS
The Future of PPPs in the Western Balkans
Prepared by Jan Kees Martijn, Yan Sun, Armine Khachatryan, William Lindquist, Yen Mooi, Ezgi Ozturk, and Hoda Selim.
Contents
Glossary
I. Introduction
II. History and Landscape of PPPs – A European Perspective
Origins of PPPs
Stylized facts and trends
III. Evidence of the Pros and Cons of PPPs
Conceptual arguments for and against PPPs
Empirical evidence on the success and failure of PPPs
IV. Strengthening PPP Governance Frameworks
V. Concluding Remarks
References
BOXES
1: Types of PPPs
2. PFRAM Technical Assistance
FIGURES
1. Median PPP Capital Stock: Income Groups and Regional Groups
2. Public-Private Partnership Projects by Sectors
3. Public-Private Partnership Projects by Payment Types
4. PPP Projects by Country and Regional Groups in Europe
5. General Government Contingent Liabilities
6. Institutional Control of PPPs
7. PPP Procurement and Contract Management
8. Managing and Reporting Fiscal Risks of PPPs
ANNEXES
I. Country Coverage
II. PPP Governance Framework Evaluation Methodology
III. Cancellations and Distressed PPPs
IV. Macro-Institutional Determinants of PPPs
Glossary
| AFC | Asian Financial Crisis |
| CESEE | Central, Eastern, and Southeastern Europe |
| EMDE | Emerging Market Developing Economies |
| EU | European Union |
| GDP | Gross Domestic Product |
| GFC | Global Financial Crisis |
| GFSM | Government Finance Statistics Manual |
| ICT | Information and Communications Technology |
| IPSAS | International Public Sector Accounting Standards |
| PPP | Public-Private Partnership |
| PPIAF | Public-Private Infrastructure Advisory Facility |
| SOE | State-owned Enterprises |
| USP | Unsolicited proposal |