Risk Management in Transport PPP Projects
In the Islamic Countries
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of responsibilities concerning the funding, construction, rehabilitation and exploitation of
energy, transport, communication and sanitation infrastructure through PPPs shall be
considered, taking into account their potential impact on the state debt sustainability and in
close coordination with fiscal and monetary policies.
PPPs are furthermore mentioned in the Government Five Year Program for the period 2015 –
2019, setting priorities, specific objectives and actions for the development of the country.
Concerning the transport sector, the actions foreseen under the specific objectives related to the
fourth priority of the plan – development of the country social and economic infrastructure –
are worth mentioning. Letter g) of the second strategic objective of the program – improvement
and expansion of the road network and bridges to support the economic development of
Mozambique – foresees the promotion of PPPs for the implementation of major airport, rail and
road infrastructure projects with the potential to attract private investments. Letter i) of the
eighth strategic objective – expansion and modernization of fishing, rail, port, airport,
communications and logistics infrastructures – envisages the applicability of the PPP model to
the airports in the provinces of Maputo, Gaza and Inhambane.
The Medium-Term Strategy for Public Debt Management for the period 2015-2018 sets as a
general target for the country the use of the PPP model to reduce the impact of trade credits
contracting on public deficit by means of adoption of project financing solutions giving priority
to the financing of infrastructure projects within the framework of Public-Private Partnerships
(PPPs), through the use of the Built Operate and Transfer BOT model.
The National Transport Policy of Mozambique, approved by the Council of Ministries in 1996,
also foresees the implementation of PPPs in all transport modes for the development,
implementation and operation of projects for the rehabilitation and expansion of the existing
and new infrastructure. A Strategy for the Integration of the National Transport System in
Mozambique was also developed by the Ministry of Transport in 2009, which aimed at
supporting the introduction of privatization and liberalization practices, with a focus on the
airport sector.
The possibility to adopt the PPP model in the transport sector is foreseen and encouraged in the
most relevant plans and strategies of Mozambique, including the ones related to the
development and operation of transport infrastructure and services. According to these plans,
the use of the PPPs may contribute to a better andmore efficient management of the state budget
and debt. To this purpose the adoption of the PPPmodel shall be associatedwith those initiatives
and projects of value higher than 12.5 billion Mozambican metical, that are effectively capable
of having a positive impact under the cost-effectiveness and/or cost-benefit stand points. Some
plans explicitly mention the applicability of the PPP model to airport projects. However a
pipeline of PPP transport projects is not available. More generally, a transport master plan or
national strategy including a detailed list of investments does not seem to be available. There
are several planning documents for public investment and attempts have been made to develop
integrated planning documents (for instance the Integrated Investment Program of 2017, also
including a detailed list of transport investments).