Risk Management Systems for Contingent Infrastructure Liabilities : Applications to Improve Contract Design and Monitoring

Risk Management Systems for Contingent Infrastructure Liabilities : Applications to Improve Contract Design and Monitoring

Government guarantees for private infrastructure projects represent real liabilities, and their costs can average as much as a third of the amount guaranteed. The authors show how governments can use a risk valuation process to analyze the distribu...

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Bibliographic Details
Main Authors: Lewis, Christopher M., Mody, Ashoka
Format: Viewpoint
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
AGENTS
APPLICATIONS
CENTRAL GOVERNMENT
COMMISSIONS
CONTINGENT LIABILITIES
CONTINGENT VALUATION
CONTINGENT VALUATION METHOD
COVERAGE
DEREGULATION
FISCAL POLICIES
FISCAL POLICY
INSURANCE
LOCAL GOVERNMENTS
MARKET RISK
PRIVATE INFORMATION
PRIVATE SECTOR
PROGRAMS
RATES
RESERVES
RISK ASSESSMENT
RISK MANAGEMENT
RISK SHARING
RISK TRANSFER
SUBSIDIARY
UNDERWRITING RISK MANAGEMENT
CONTINGENT LIABILITY
INFRASTRUCTURE PROJECTS
GOVERNMENT GUARANTEES
PRIVATE INVESTMENTS
VALUATION
RISK AVERSION
GOVERNMENT REGULATION
COMMERCIAL RISKS
COST OVERRUNS
RISK ALLOCATION
REVENUE SHARING
CONTRACT FORMULATION
CONTRACT OPTIONS
Online Access:http://hdl.handle.net/10986/11538
Description
Summary:Government guarantees for private infrastructure projects represent real liabilities, and their costs can average as much as a third of the amount guaranteed. The authors show how governments can use a risk valuation process to analyze the distribution of risks, decide which risks they should bear and which should be borne by the private sector, and reduce the frequency and size of calls on guarantees.

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