Risk Management in Transport PPP Projects
In the Islamic Countries
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 Law n. 15/2011 setting the basic principles for the development, procurement,
implementation and monitoring process of Public-Private Partnerships, major projects
and commercial concessions;
 Decree n. 16/2012 representing the implementing regulation of Law no. 15/2011;
 Decree n. 69/2013 regulating the applicability of the PPP model to small size projects;
 Decree n. 5/2016 concerning the procurement procedures applicable to PPPs;
 Investment Lawn. 3/93 and its implementing regulation Decree n. 43/2009 are also worth
to mention for the provisions relating to Public-Private Partnership projects and contract
approval level of authority as well as other rules applying to investments in Mozambique,
including incentives.
The above legislation is considered effective in improving the pre-existing legislation towards
the establishment of a PPP dedicated legal framework. However the new framework does not
seem to have fully contributed to a more transparent process of identification of the PPP
initiatives and selection of the contractors as part of the bid procedures (Fischer & Nhabinde,
2012; DFID, 2015). As a matter of fact most if not all existing PPPs in the transport sector,
including those implemented after the entry into force of the PPP law were developed on the
basis of unsolicited proposals, which have been assigned to the respective promoters. Public
authorities are also deemed to have significant discretion in the definition of the scoring system
and criteria for the selection of the contractors as part of the bidding procedure. PPP contracts
are also not made publicly available in its entire content. These transparency issues are deemed
to have potential negative effects on the confidence that the market has to seek opportunities in
Mozambique (Fischer & Nhabinde, 2012; DFID, 2015). Another element which is possibly
associated with transparency is corruption, which is an element that has been commented in
previous studies (Fischer & Nhabinde, 2012, IMF, 2018b). The 2018 Corruption Perceptions
Index (by Transparency International) ranks Mozambique in the 158 place out of 175 countries.
Whilst no information seems to be publicly available concerning cases of corruption and PPP
projects in the country, the above index for Mozambique was 56 in 1999 and reached its highest
value of 158 in 2018, showing a constant and gradual increase. Corruption is thus representing
an element requiring risk mitigation efforts, such as increasing transparency particularly at the
project identification, development and procurement stages.
Institutional arrangements
The following institutions represent the main governmental agencies involved in the
development and implementation of PPP projects in the transport sector in Mozambique:
 Planning and supervisory bodies:
o The Ministry of Economy and Finance is responsible for the elaboration of the
relevant development plans of the Republic of Mozambique and for identifying the
priority investments for the country, including the ones possible to be developed
under the PPP model; The Ministry is also responsible for the appraisal, monitoring