Improving Transport Project Appraisals
In the Islamic Countries
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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