Private Infrastructure, Public Risk
This economic policy note presents the dilemma between private infrastructure and public risk. The note examines the fact that, increasingly, governments in many developing countries are relying on the private sector to provide infrastructure services, thus being forced - because of policy shortcomings - to assume risks that private investors should bear. However, through the improvement in policies, such as risk reduction and guarantee improvement, governments can avoid these risks, while attracting private infrastructure investment. Guidelines are provided for allocating risk, where two factors are determined: 1) the degree of influence in the control of such risk; and, 2) the ability to bear risk. However, since these factors may adversely react, other factors are considered as well, such as regulatory, quasi-commercial risks, construction cost risks, in addition to exchange and interest rates risks. The adoption of accrual accounting measures is suggested as a crucial step for the improvement in guarantee management.
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| Main Author: | |
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| Format: | Brief biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
1998-11
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| Subjects: | GOVERNMENT POLICY, GOVERNMENT GUARANTEES, PRIVATE SECTOR, RISK MANAGEMENT, RISK ASSESSMENT, PROJECT FINANCE, CREDITWORTHINESS, FINANCING PROGRAMS, POLITICAL RISKS, EXCHANGE RATES, INTEREST RATES ACCRUAL ACCOUNTING, AGENTS, AIRPORTS, AUTONOMY, BORROWING, BUDGET CONSTRAINTS, CONSUMERS, CONTINGENT LIABILITIES, CONTINGENT LIABILITY, DISCLOSURE, ECONOMIC POLICIES, ECONOMICS, ENVIRONMENTAL PROBLEMS, EXCHANGE RATE, EXPENDITURES, FOREIGN BANKS, INSURANCE, INTEREST RATES, LAWS, PORTS, PRESENT VALUE, PRIVATIZATION, PUBLIC LIABILITY, RATES, REGULATORY AGENCIES, RISK TAKING, ROADS, STATE ENTERPRISES, TAX, TELECOMMUNICATIONS, TERMS OF TRADE, |
| Online Access: | http://documents.worldbank.org/curated/en/1998/11/438759/private-infrastructure-public-risk http://hdl.handle.net/10986/11521 |
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dig-okr-10986115212021-06-14T11:03:49Z Private Infrastructure, Public Risk Thobani, Mateen GOVERNMENT POLICY GOVERNMENT GUARANTEES PRIVATE SECTOR RISK MANAGEMENT RISK ASSESSMENT PROJECT FINANCE CREDITWORTHINESS FINANCING PROGRAMS POLITICAL RISKS EXCHANGE RATES INTEREST RATES ACCRUAL ACCOUNTING AGENTS AIRPORTS AUTONOMY BORROWING BUDGET CONSTRAINTS CONSUMERS CONTINGENT LIABILITIES CONTINGENT LIABILITY DISCLOSURE ECONOMIC POLICIES ECONOMICS ENVIRONMENTAL PROBLEMS EXCHANGE RATE EXPENDITURES FOREIGN BANKS GOVERNMENT GUARANTEES INSURANCE INTEREST RATES LAWS PORTS PRESENT VALUE PRIVATE SECTOR PRIVATIZATION PUBLIC LIABILITY RATES REGULATORY AGENCIES RISK TAKING ROADS STATE ENTERPRISES TAX TELECOMMUNICATIONS TERMS OF TRADE This economic policy note presents the dilemma between private infrastructure and public risk. The note examines the fact that, increasingly, governments in many developing countries are relying on the private sector to provide infrastructure services, thus being forced - because of policy shortcomings - to assume risks that private investors should bear. However, through the improvement in policies, such as risk reduction and guarantee improvement, governments can avoid these risks, while attracting private infrastructure investment. Guidelines are provided for allocating risk, where two factors are determined: 1) the degree of influence in the control of such risk; and, 2) the ability to bear risk. However, since these factors may adversely react, other factors are considered as well, such as regulatory, quasi-commercial risks, construction cost risks, in addition to exchange and interest rates risks. The adoption of accrual accounting measures is suggested as a crucial step for the improvement in guarantee management. 2012-08-13T15:17:35Z 2012-08-13T15:17:35Z 1998-11 http://documents.worldbank.org/curated/en/1998/11/438759/private-infrastructure-public-risk http://hdl.handle.net/10986/11521 English PREM Notes; No. 10 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |
| institution |
Banco Mundial |
| collection |
DSpace |
| country |
Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
| access |
En linea |
| databasecode |
dig-okr |
| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English |
| topic |
GOVERNMENT POLICY GOVERNMENT GUARANTEES PRIVATE SECTOR RISK MANAGEMENT RISK ASSESSMENT PROJECT FINANCE CREDITWORTHINESS FINANCING PROGRAMS POLITICAL RISKS EXCHANGE RATES INTEREST RATES ACCRUAL ACCOUNTING AGENTS AIRPORTS AUTONOMY BORROWING BUDGET CONSTRAINTS CONSUMERS CONTINGENT LIABILITIES CONTINGENT LIABILITY DISCLOSURE ECONOMIC POLICIES ECONOMICS ENVIRONMENTAL PROBLEMS EXCHANGE RATE EXPENDITURES FOREIGN BANKS GOVERNMENT GUARANTEES INSURANCE INTEREST RATES LAWS PORTS PRESENT VALUE PRIVATE SECTOR PRIVATIZATION PUBLIC LIABILITY RATES REGULATORY AGENCIES RISK TAKING ROADS STATE ENTERPRISES TAX TELECOMMUNICATIONS TERMS OF TRADE GOVERNMENT POLICY GOVERNMENT GUARANTEES PRIVATE SECTOR RISK MANAGEMENT RISK ASSESSMENT PROJECT FINANCE CREDITWORTHINESS FINANCING PROGRAMS POLITICAL RISKS EXCHANGE RATES INTEREST RATES ACCRUAL ACCOUNTING AGENTS AIRPORTS AUTONOMY BORROWING BUDGET CONSTRAINTS CONSUMERS CONTINGENT LIABILITIES CONTINGENT LIABILITY DISCLOSURE ECONOMIC POLICIES ECONOMICS ENVIRONMENTAL PROBLEMS EXCHANGE RATE EXPENDITURES FOREIGN BANKS GOVERNMENT GUARANTEES INSURANCE INTEREST RATES LAWS PORTS PRESENT VALUE PRIVATE SECTOR PRIVATIZATION PUBLIC LIABILITY RATES REGULATORY AGENCIES RISK TAKING ROADS STATE ENTERPRISES TAX TELECOMMUNICATIONS TERMS OF TRADE |
| spellingShingle |
GOVERNMENT POLICY GOVERNMENT GUARANTEES PRIVATE SECTOR RISK MANAGEMENT RISK ASSESSMENT PROJECT FINANCE CREDITWORTHINESS FINANCING PROGRAMS POLITICAL RISKS EXCHANGE RATES INTEREST RATES ACCRUAL ACCOUNTING AGENTS AIRPORTS AUTONOMY BORROWING BUDGET CONSTRAINTS CONSUMERS CONTINGENT LIABILITIES CONTINGENT LIABILITY DISCLOSURE ECONOMIC POLICIES ECONOMICS ENVIRONMENTAL PROBLEMS EXCHANGE RATE EXPENDITURES FOREIGN BANKS GOVERNMENT GUARANTEES INSURANCE INTEREST RATES LAWS PORTS PRESENT VALUE PRIVATE SECTOR PRIVATIZATION PUBLIC LIABILITY RATES REGULATORY AGENCIES RISK TAKING ROADS STATE ENTERPRISES TAX TELECOMMUNICATIONS TERMS OF TRADE GOVERNMENT POLICY GOVERNMENT GUARANTEES PRIVATE SECTOR RISK MANAGEMENT RISK ASSESSMENT PROJECT FINANCE CREDITWORTHINESS FINANCING PROGRAMS POLITICAL RISKS EXCHANGE RATES INTEREST RATES ACCRUAL ACCOUNTING AGENTS AIRPORTS AUTONOMY BORROWING BUDGET CONSTRAINTS CONSUMERS CONTINGENT LIABILITIES CONTINGENT LIABILITY DISCLOSURE ECONOMIC POLICIES ECONOMICS ENVIRONMENTAL PROBLEMS EXCHANGE RATE EXPENDITURES FOREIGN BANKS GOVERNMENT GUARANTEES INSURANCE INTEREST RATES LAWS PORTS PRESENT VALUE PRIVATE SECTOR PRIVATIZATION PUBLIC LIABILITY RATES REGULATORY AGENCIES RISK TAKING ROADS STATE ENTERPRISES TAX TELECOMMUNICATIONS TERMS OF TRADE Thobani, Mateen Private Infrastructure, Public Risk |
| description |
This economic policy note presents the
dilemma between private infrastructure and public risk. The
note examines the fact that, increasingly, governments in
many developing countries are relying on the private sector
to provide infrastructure services, thus being forced -
because of policy shortcomings - to assume risks that
private investors should bear. However, through the
improvement in policies, such as risk reduction and
guarantee improvement, governments can avoid these risks,
while attracting private infrastructure investment.
Guidelines are provided for allocating risk, where two
factors are determined: 1) the degree of influence in the
control of such risk; and, 2) the ability to bear risk.
However, since these factors may adversely react, other
factors are considered as well, such as regulatory,
quasi-commercial risks, construction cost risks, in addition
to exchange and interest rates risks. The adoption of
accrual accounting measures is suggested as a crucial step
for the improvement in guarantee management. |
| format |
Publications & Research :: Brief |
| topic_facet |
GOVERNMENT POLICY GOVERNMENT GUARANTEES PRIVATE SECTOR RISK MANAGEMENT RISK ASSESSMENT PROJECT FINANCE CREDITWORTHINESS FINANCING PROGRAMS POLITICAL RISKS EXCHANGE RATES INTEREST RATES ACCRUAL ACCOUNTING AGENTS AIRPORTS AUTONOMY BORROWING BUDGET CONSTRAINTS CONSUMERS CONTINGENT LIABILITIES CONTINGENT LIABILITY DISCLOSURE ECONOMIC POLICIES ECONOMICS ENVIRONMENTAL PROBLEMS EXCHANGE RATE EXPENDITURES FOREIGN BANKS GOVERNMENT GUARANTEES INSURANCE INTEREST RATES LAWS PORTS PRESENT VALUE PRIVATE SECTOR PRIVATIZATION PUBLIC LIABILITY RATES REGULATORY AGENCIES RISK TAKING ROADS STATE ENTERPRISES TAX TELECOMMUNICATIONS TERMS OF TRADE |
| author |
Thobani, Mateen |
| author_facet |
Thobani, Mateen |
| author_sort |
Thobani, Mateen |
| title |
Private Infrastructure, Public Risk |
| title_short |
Private Infrastructure, Public Risk |
| title_full |
Private Infrastructure, Public Risk |
| title_fullStr |
Private Infrastructure, Public Risk |
| title_full_unstemmed |
Private Infrastructure, Public Risk |
| title_sort |
private infrastructure, public risk |
| publisher |
World Bank, Washington, DC |
| publishDate |
1998-11 |
| url |
http://documents.worldbank.org/curated/en/1998/11/438759/private-infrastructure-public-risk http://hdl.handle.net/10986/11521 |
| work_keys_str_mv |
AT thobanimateen privateinfrastructurepublicrisk |
| _version_ |
1756572455017644032 |