Managing contingent liabilities in PPPs - Australia, Chile and South Africa

Publication Date
30 June 2009

This report describes the strategies used by governments in Australia, Chile, and South Africa to manage contingent liability in public–private partnership projects. It discusses whether other governments, including those with less administrative capacity, should adopt similar practices.

The report recommends caution in drawing inferences from the case studies it gives on these countries. Although the countries have been reasonably successful in managing their contingent liability, the report contends that there is no direct link between the strategies they have used and the success of their projects. Specifically, it points to the good economic growth experienced in these countries, which might be playing a part; and the fact that some of the causes of success in those countries are hard to import — for example, per capita income and quality of public sector governance.

However, the paper presents some findings on which practices in the areas of approval, analysis and reporting that other governments might consider in light of the experience of these three countries.