Posted by Maximilien Queyranne, Isabel Rial and Genevieve Verdier 
The PFRAM, developed by the IMF and the World Bank, is an analytical tool to assess the potential fiscal costs and risks arising from Public-Private Partnership (PPP) projects. PPPs are increasingly promoted as a way to finance investment projects, with the objective of supporting national development goals. However, PPPs are not exempted from controversy. To supporters of PPPs, governments can benefit from efficiency gains derived mainly from the private sector’s technological innovation and superior managerial skills. Critics of PPPs, on the other hand, tend to view PPPs as a procurement option that might weaken fiscal discipline. In their view, many governments have procured investment projects as PPPs not for efficiency reasons, but to circumvent budget constraints and to postpone recording the fiscal costs of providing infrastructure services. Hence, some governments procured projects that either could not be funded within their budgetary envelope, or that exposed public finances to excessive fiscal risks.
- The New PPP Fiscal Risk Assessment Model (PFRAM)&uri=http%3A%2F%2Fblog-pfm.imf.org%2Fpfmblog%2F2016%2F06%2Fposted-by-maximilien-queyranne-isabel-rial-and-genevieve-verdier-1-the-pfram-developed-by-the-imf-and-the-world-bank-is.html" class="first">Email this
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