Connectivity, Markets and Finance
Public Private Partnerships (PPP) have been gaining scope in the Region as a mechanism to develop infrastructure and improve access to basic services. This financing modality has the potential to generate good incentives for the design, construction and operation of infrastructure and benefits for governments and society as a whole.
The use of the benefits of PPPs by countries depends largely on adequate distribution and management of the associated risks, as well as the associated contingencies for the State. For this reason, the institutional capacities of governments for the evaluation and management of these risks play a central role in the successful development of projects and the taking advantage of their benefits.
The PPP Risk Management Group, or LAC PPP Risk Management Group, is a regional public good available to the governments of Latin America and the Caribbean dedicated to generating a space for exchange and cooperation between specialists in public financing. private, on the management of associated risks and arises from the demand of the beneficiary countries to create a forum for discussion at the regional level and collective effort for the generation of applied knowledge.
Comprehensive Risk Management, understood as adequate identification, measurement, and monitoring of the risks generated by PPPs, is key to guaranteeing that PPPs generate value for money and, therefore, are a fundamental mechanism to carry out a good project. infrastructure.
PPP Governance or the rules that organize the different actors involved in the design and implementation cycle of a PPP are vital for the promotion and administration of good projects. These rules and the capabilities of the organizations in charge of their implementation and compliance are fundamental pieces of the PPP ecosystem.
Risk Management and Financing Instruments are fundamental tools to structure and promote PPPs and attract international investors. Infrastructure and guarantee funds or development financial institutions are increasingly a key tool in the adequate structuring of PPP risks.
The principles for proper Registration, Reporting and Accounting of PPPs are very important mechanisms for transparent and effective risk management aimed at generating value for money and avoiding fiscal problems in the medium and long term.
We are currently made up of 13 countries in Latin America and the Caribbean (LAC): Argentina, Brazil, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Dominican Republic and Uruguay. The Group may be expanded through accession to other LAC countries that are members of the Inter-American Development Bank (IDB).
LAC countries that are not initial members of the group and that are members of the IDB may join by express request through a commitment letter, as was required of the initial members. Each of the LAC countries that join the Group will have the same powers as the rest of the member countries.
We are headed by an Executive Committee, which delegates oversight of day-to-day operations to the Executive Secretary. The Executive Committee is responsible for the general policy and direction of the group. The Executive Secretariat, led by the IDB, is responsible for the operational and technical coordination of the group's activities.
- Be a forum for high-level discussion among experts in the field of risks associated with PPP.
- Generate an exchange of experiences, training, lessons learned, and development of good practices around risk management associated with public-private financing.
- Disseminate technical knowledge and research associated with the topic of risk management in PPP.
We propose a general framework to guide risk management actions associated with public-private financing of specialists in the region, through uninterrupted exchange of experiences and policies between countries, technical debates among a large group of analysts of risk management associated with public-private financing, as well as access to statistics.
The group also serves as a mechanism to develop and disseminate innovations and promote financial markets in the region. Finally, the group promotes studies and debates on risk management associated with public-private financing.
We facilitate dialogue between countries on risk issues in PPP operations.
The group uses annual or biannual meetings, which serve as an environment for the exchange of experiences and knowledge on risk management associated with public-private financing. The meetings seek:
• Contribute to the integration of risk management offices associated with public-private financing of the participating countries
• Create technical discussion forums, covering topics of general interest for risk management offices associated with public-private financing)
• Offer a favorable environment to debate current tools and possible scenarios for risk management associated with public-private financing, and
• Create a favorable environment for the development of research on a wide range of topics related to risk management associated with public-private financing.
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