Risk Management in Transport PPP Projects
In the Islamic Countries
101
capital expenditure on major investment projects, as well as operating expenditures for the next
fiscal year (République de la Côte d'Ivoire, 2019). This issue was also identified by international
agencies supporting the government, and in particular with reference to the assessment of
potential risks stemming from PPP initiatives. In fact, although direct fiscal risks (state-provided
subsidies) are generally rare in Côte d'Ivoire, contingent liabilities (particularly due to PPP
management or demand guarantees) can be very relevant, and until recently they were are not
assessed and were poorly tracked. Following advice by international agencies and institutions,
such as the IMF and the AfDB, projects started to be reviewed in terms of fiscal risks, adopting
the PFRAM methodology developed and recommended by the IMF (République de la Côte
d'Ivoire, 2019).
Project preparation. Major projects are subject to economic analyses to assess their cost-
benefit or cost-effectiveness ratios, through feasibility or pre-feasibility analyses. Economic
studies and analyses are carried out by the National Bureau of Technical Studies and
Development (BNETD) or by other design offices at the request of sector Ministries. These
studies and/or the elements for economic appraisal of projects are not always made available
to the DPIP or CNP-PPP for the project review and selection, as in some cases the studies are
performed only at a later stage. The results of the economic analyses of major projects are
generally not made public.
Box 15 PPP under preparation: East-West Bus Rapid Transit (BRT) corridor between
Yopougon and Bingerville
This project concerns the construction and operation of a 20 km long east-west Bus Rapid Transit
(BRT) line in Abidjan, made up of two section: Adjamé - Yopougon (inclusive of the section where
the new 4th bridge already under construction); and Adjamé - Cocody.
The project is currently at the preparation stage, with support from the World Bank. According
to the Press Release N 2019/113/AFR, the WB Board of Executive Directors approved a USD 300
million loan to Côte d’Ivoire for the implementation of a comprehensive project supporting urban
mobility in Abidjan and including the new BRT line as a key measure. In addition, AfDB and JICA
are also supporting the development of a trunk infrastructure on the East-West axis.
Policy and strategic planning. The implementation of a mass rapid transit system on the East-
West corridor was already foreseen in the Greater Abidjan Urban Master Plan (SDUGA), with
the aim to link the densest areas with business neighborhoods. Two major structuring axes were
identified in the SDUGA: a North-South corridor (where the Line 1 of the Metro is currently under
implementation by means of a PPP) and an East-West axes between Yopougon and Bingerville. A
PPP project was also included in the PND2016-2020 for the East/West Axis (Line 2 of the Abidjan
subway). However, taking into consideration budget constraints, the project of a metro line was
later abandoned, in favor of a more cost-efficient BRT system. A screening technical study
completed in January 2018 firstly assessed the feasibility of the BRT and gave start to a new wave
of more detailed studies.