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Timothy Irwin - Dealing With Public Risk in Private Infrastructure (World Bank Latin American and Caribbean Studies. Viewpoints)

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Many infrastructure privatizations still leave governmentsand thus taxpayersexposed to significant financial risks. This book examines these risks and considers how governments should respond to investors requests for guarantees and other forms of government support. The report examines how governments can decide which risks to bear and which to avoid, how they can reduce the risks that private investors face without giving guarantees, and how they can measure, budget, and account for the risks they do take on.

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title Dealing With Public Risk in Private Infrastructure World Bank Latin - photo 1

title:Dealing With Public Risk in Private Infrastructure World Bank Latin American and Caribbean Studies. Viewpoints
author:Irwin, Timothy.
publisher:World Bank
isbn10 | asin:0821340301
print isbn13:9780821340301
ebook isbn13:9780585256092
language:English
subjectInfrastructure (Economics)--Developing countries--Finance--Congresses, Investments, Foreign--Developing countries--Congresses, Risk management--Developing countries--Congresses.
publication date:1997
lcc:HC59.72.C3D4 1997eb
ddc:336.3/6/091724
subject:Infrastructure (Economics)--Developing countries--Finance--Congresses, Investments, Foreign--Developing countries--Congresses, Risk management--Developing countries--Congresses.
Page i
Dealing With Public Risk In Private Infrastructure
World Bank Latin American and Caribbean Studies
Viewpoints
Edited by
Timothy Irwin
Michael Klein
Guillermo E. Perry
Mateen Thobani
The World Bank
Washington, D.C.
Page ii
Copyright 1997
The International Bank for Reconstruction and Development/THE WORLD BANK
1818 H Street, N.W.
Washington, D.C. 20433, U.S.A.
All rights reserved
Manufactured in the United States of America
First printing December 1997
Second printing September 1998
This publication is part of the World Bank Latin American and Caribbean Studies series. Although these publications do not represent World Bank policy, they are intended to be thought-provoking and worthy of discussion, and they are designed to open a dialogue to explore creative solutions to pressing problems. Comments on this paper are welcome and will be published on the LAC Home Page, which is part of the World Bank's site on the World Wide Web. Please send comments via e-mail to laffairs@worldbank.org or via post to LAC External Affairs, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.
The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries.
The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A.
Timothy Irwin is an economist in the Private Participation in Infrastructure (PPI) group of the World Bank. Michael Klein is chief economist of Shell International in London and was formerly the manger of the World Bank's Private Participation in Infrastructure (PPI) group. Guillermo E. Perry is chief economist of the Latin America and Caribbean (LAC) region of the World Bank and Director for LAC of the Poverty Reduction and Economic Management Network (PREM). Mateen Thobani is principal economist in the Poverty Reduction and Economic Management Unit (PREM) in the Latin America and Caribbean region of the World Bank.
Library of Congress Cataloging-in-Publication Data
Dealing with public risk in private infrastructure / edited by Timothy Irwin [et al.].
p. cm. (World Bank Latin American and Caribbean studies)
Viewpoints
ISBN 0-8213-4030-1
1. Infrastructure (Economics)Developing countriesFinanceCongresses.
2. Investments, ForeignDeveloping countriesFinanceCongresses.
3. Risk managementDeveloping countriesFinanceCongresses.
I. Perry, Guillermo, 1945- . II. Series.
HC59.72.C3M37 1997 97-30555
336.3'6'091724dc21 CIP
Page iii
Contents
Preface
vii
Contributors
ix
1. Dealing with Public Risk in Private Infrastructure: An Overview
Timothy Irwin, Michael Klein, Guillermo E. Perry, and Mateen Thobani
1
Picture 2
The Growth of Private Investment and Government Guarantees
3
Picture 3
Policies That Reduce Risk
6
Picture 4
Principles of Risk Allocation
8
Picture 5
Some Guidelines for the Allocation of Certain Infrastructure Risks
10
Picture 6
Measuring and Budgeting for Risk
13
Picture 7
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