Irwin, Timothy C. 2007. Government Guarantees: Allocating and Valuing Risk in Privately Financed Infrastructure Projects. Directions in Development. Washington, DC: World Bank.
"Key References: Infrastructure Challenges and How PPPs Can Help - Problems with Infrastructure"
Chapter 2 describes lessons from history of government guarantees to private infrastructure projects, with cautionary tales of governments thereby creating significant fiscal exposure. Chapter 3 describes why governments can make bad decisions on providing guarantees.
"Key References: Public Financial Management for PPPs"
Covers topics relating to fiscal impacts of PPP projects and provides frameworks to guide policymakers. Offers lessons learned in managing liabilities, direct or contingent, and case studies.
"Key References: Fiscal Analysis"
Comprehensively describes why and how governments accept contingent liabilities under PPP projects by providing guarantees. Describes in detail how the value of these guarantees can be calculated, with examples.
"Key References: Structuring PPP Projects"
Chapter 4 defines risk, and explains the principles of allocating risk under PPP projects. Chapter 5 provides examples of putting those principles into practice for three risks: exchange-rate risk, insolvency risk, and policy risk.