| The conducted research is oriented to Identify and study potential government guarantees for debt financing of special purpose vehicles under the public private partnership(PPP) regime in Uruguay, analyzing their relation with the bankability of projects.Research objectives are to identify the availability of government guarantee mechanisms, assess their impact on debt finance supplied by different financial institutions, reviewing the best practices of government guarantees currently used in the world and the proposal of suggestions on government policy improvement.Methodology used in conducted studies involved the use of a qualitative approach by direct interviews to related PPP public authorities and selected banks, pension funds and multilateral development banks. Semi quantitative techniques were also used to collect information through delivered questionnaires. Collected information was used to construct a significance index to determine the perceptions of public and private parties about the effectiveness of government debt guarantees to tackle different policy, financial and project risk drivers. Literature review was used for identifying current trends in the guarantee programs for PPP projects in selected countries, and inference from previous steps was used to incorporate recommended policy improvement suggestions.The investigation process found a lack of Government guarantees for PPP projects in Uruguay. Both public and private parties agree on the high significance of government guarantees to tap into the industry additional private resources. Recent trends in a variety of countries reveal the use of government guarantees and infrastructure funds to provide credit enhancement to PPP projects. Credit enhancement facilities such as guarantees in addition to an adequate policy framework in place for could contribute to tap additional private finance and improve public administration. |
