Notes from Timothy Irwin’s  Government Guarantees – Allocating and Valuing Risk in Privately Financed Infrastructure Projects Bordeaux Bridge – early template of public-private partnership – Govt built bridge – Firm maintained and operated it and contributed capital for construction – Firm would get the toll for 99 years. If annual revenue < min., govt would pay the min. If >an amount, govt share half surplus On guaranteeing returns If firms aren’t convinced by the commercial viability of a project and require guaranteed returns, it’s probably not worth doing! On exchange rate risk For free floating currencies – If a govt … Continue reading Allocating & valuing risk in public-private infrastructure projects