PPP Development & Delivery

Risk Allocation, Fiscal Exposure and Contingent Liabilities

Allocate risk deliberately and understand what remains with the public sector.

Paraclete training and institutional capability work

Course overview

PPP contracts do not remove public risk. Poorly structured guarantees, payment obligations, termination provisions and demand assumptions can create long-term fiscal exposure that is not visible at procurement.

This course equips participants to identify project risks, allocate them to the party best able to manage them, quantify public exposure and integrate contingent liabilities into approval and monitoring decisions.

Who this is for

Finance ministries and county treasuries, contracting authorities, PPP units, legal teams, auditors, advisers and project sponsors.

Participants will be able to

  • Build a project risk register and allocation matrix
  • Distinguish transferred, shared and retained risks
  • Identify direct liabilities and contingent liabilities
  • Assess guarantees, termination and demand exposure
  • Integrate fiscal-risk controls into project approval and monitoring

Principal course areas

  • Risk identification
  • Allocation principles
  • Construction and operating risk
  • Demand and revenue risk
  • Foreign-exchange and interest-rate risk
  • Government support measures
  • Guarantees and termination payments
  • Contingent liabilities
  • Fiscal affordability
  • Monitoring and disclosure