Risk analysis is part of the integrated national financing framework (INFF) exercise and an understanding of general risk factors, including financial impact of PPPs, should inform the financing strategy.
The Public Fiscal Risk Assessment Model (PFRAM), developed by the International Monetary Fund (IMF) and the World Bank Group (WBG), is an analytical tool to assess fiscal costs and risks arising from PPP projects. It is designed to assist governments in assessing fiscal implications of PPPs, as well as in managing these projects in a proactive manner. Since it was launched in April 2016, PFRAM has been used in the context of IMF and WBG technical assistance, as well as by country authorities (for example, PPP units in Ministries of Finance, public corporations) to better understand the medium- to long-term fiscal implications of PPPs.
Building on experience gathered from developers and users, this user manual describes a new version of the tool, PFRAM 2.0. The new version improves the user interface making it easier to understand by non-PPP experts and extends the tool’s coverage and functionalities. This document describes the scope of PFRAM 2.0 and its functionalities, discusses the core concepts underpinning the tool, and presents examples that apply PFRAM 2.0 to specific PPP projects and a simple portfolio
