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Improving Transport Project Appraisals

In the Islamic Countries

107

The regulations provide a detailed description of these four main phases, providing insight in

what steps are to be undertaken. The preparation phase includes the feasibility studies and cost

benefit analysis. No detailed information is included on use of input parameters, such as project

duration, discount rate, etc.

It should be noted that the PPP Unit is currently developing a manual. The draft

PPP guidelines

manual

, (PPP Unit, 2019), provides detailed guidance in the implementation of the above-

mentioned phases. The PPP Guidelines Manual is based upon the need to describe and explain

how to carry-out the phases by providing practical procedures, each following a similar

approach, including standard questions, such as:

What

: Definition: This provides in 2 or 3 sentences a clear but brief definition of what this

given procedure is;

Why

: Rationale: This provides in about 1 paragraphs WHY the procedure is needed and what

its importance is, including explaining what the risks and costs would be if this procedure

were not completed;

Who

: Institutional Responsibility: This identifies which specific organization(s) in Jordan is

responsible for conducting and completing the procedure;

How

: Instructions for Implementing the Procedure: This provides in about 1-3 pages a

detailed, practical description of how to implement this given procedure, including providing

model templates and “tools” to use;

When

: Estimated Time Required: This estimates the approximate amount of time required to

complete the procedure;

How to do it right

: A Checklist of lessons learned, case examples and good practices.

The private sector

The private sector plays an active role in the appraisal of transport projects. In most appraisals,

consultant are contracted to contribute to specific tasks, as described above, such as (pre)

feasibility studies, including demand analysis, cost benefit analysis, as input for the economic

and financial analysis, environmental and social impact studies, and risk analysis. The capacity

of the local consultants is considered good, however, there is a limited number of well qualified

consultants. Names of qualified consultants mentioned are Dar Al-Handasah and Dar-Al-Omran.

Often, consortia are established, including an international partner. Notable for PPP advisors, a

range of international firms are used. The local industry seems not yet sufficiently developed in

this area.

Special case: The PPP Unit

The

Public-Private Partnership Unit

, under the supervision of the

Ministry of Finance

and the

Public-Private Partnership Council

led by the Prime Minister, acts as a central body for the

supervision, regulation, and support of all PPPs conducted by the Government of Jordan. The

PPP Unit, in place since 2014, is a relatively small outfit, with eight staff members and a technical

advisor, provided by USAID. The PPP Unit has been successful in so far bringing 16 projects

forward to the PPP Council, out of which there are a number of transport projects, i.e. the King