CAMBODIA: Strengthening the PPP Fiscal Risk Management Framework

PPPs are seen as an important tool to help meet infrastructure investment needs in Cambodia. However, PPPs can also create substantial fiscal commitments and contingent liabilities for governments. Effective monitoring and management of these fiscal risks is therefore critical. The Ministry of Economy and Finance and the General Department of Public-Private Partnerships (GDPPP) aim to strengthen their capacity to better manage PPP fiscal risks. PPIAF is providing targeted support to help agencies properly assess, monitor, forecast, and report on fiscal exposures from PPPs, in alignment with broader fiscal risk management. Key activities include advanced PPP Fiscal Risk Assessment Model (PFRAM) training for GDPPP staff and case studies.

Additional support will develop a PPP reporting and disclosure framework coordinated with the public fiscal risk framework. Recommendations will be provided on establishing a PPP project database to collect data for fiscal risk management. Workshops will also build capacity on PPP contingent liabilities.

The desired outcome is for GDPPP staff to have the skills to interpret PFRAM results and integrate them into overall government fiscal risk monitoring. Further goals are for GDPPP to implement guidelines for PPP reporting and disclosure and establish a PPP database within 12 months of the PPIAF support completion.

With strengthened capacities to assess and manage fiscal commitments from PPPs, Cambodia will be better equipped to strategically leverage PPPs for sustainable infrastructure development. PPIAF’s targeted assistance facilitates the prudent use of scarce public resources and builds the foundation for responsible PPP implementation.