Proceedings of the 14th Meeting of the
Transport and Communications Working Group
39
Annex 3: The Policy Recommendations
THE ROOM DOCUMENT FOR POLICY DEBATE SESSION OF
14TH MEETING OF THE COMCEC TRANSPORT AND COMMUNICATIONS
WORKING GROUP
The COMCEC Transport and Communications Working Group (TCWG) successfully held its 14th
Meeting on October 3rd, 2019 in Ankara, Turkey with the theme of “Risk Management in
Transport Public-Private Partnership (PPP) Projects in the OIC Member Countries”. During the
Meeting, TCWG made deliberations on the policy recommendations related to the risk
management in transport PPP projects. The policy recommendations were formulated by taking
into consideration the research report titled “Risk Management in Transport PPP Projects in the
Islamic Countries” and the responses of the Member States to the policy questions sent by the
COMCEC Coordination Office. The policy recommendations are as followings:
Policy Recommendation I: Encouraging to develop/improve the legal framework through
adopting a PPP tailored legislation.
Rationale:
PPP projects shall preferably be identified as part of the elaboration of relevant national
development and transport strategy plans. Depending on the number of PPP initiatives
implemented or foreseen to be implemented in a country, a PPP dedicated regulatory
framework can be adopted. Tailored to PPPs, the legal framework, interalia, would more
appropriately address the specificities related to this type of procurement method, also
providing a standard set of provisions potentially mitigating risks of contractual disputes and
renegotiations. Islamic finance solutions would also be considered for the positive implications
these might have on the mitigation of macroeconomic and financial credit risks. For the adoption
of Islamic finance in countries where it is not already in use, the COMCEC research report
suggests some basic steps, i.e. amending the legislation and regulatory framework of the banking
and financing system, undertaking sensitizing campaigns on Islamic finance at the institutional
level, and training programs dedicated to the improvement of the competences and skills of the
human resources etc.
Policy Recommendation II: Allocating clear responsibilities for the management of PPPs
over the course of their life-cycle and establishing/strengthening a unit/department
within the government to that end.
Rationale:
A unit/department within the government or within the authority in charge of state budget
monitoring and control would be identified that can be responsible for the appropriate
management of the accounting liabilities deriving from the involvement of the public sector in
PPPs. Depending on the number of PPPs implemented or expected to be implemented in a