Risk Management in Transport PPP Projects
In the Islamic Countries
152
5.4. Arab cluster, Case study 1: Algeria
5.4.1. Introduction
Scope of the case study
The scope of this case study is to illustrate the practices currently in place for the management
of the risks associated with PPP projects in the transport sector in Algeria, with reference to the
entire life-cycle of Public-Private Initiatives and the elements of the conceptual framework
identified at Chapter 3. Existing literature and publicly available information represent the main
sources for the elaboration of this case study.
Overview of PPPs in the transport sector
According to the World Bank’s database on Private Participation in Infrastructure and existing
literature about 26 PPP initiatives have been implemented in Algeria, of which 24 are deemed
to be active. Most of these have been implemented in the water desalination and distribution
sectors, some in the energy sector, and 5 public-private projects have been implemented in
the transport sector . Of the 5 PPPs in the transport sector only three involves rehabilitation
and/or construction of transport infrastructure. All these have been all implemented in the field
of maritime transport and relate to the operation of container terminals at the ports of Bejaia,
Algiers and Djen Djen. The Table below provides basic information on these initiatives (Tidjani
C., Benkassir I, 2019; WB, 2019).
Table 31: PPPs in the transport sector in Algeria
Project Name Type of PPP
Year of
contract
signature
Concession
Period
Share of
private
equity
Responsible
Ministry
Bejaia
Mediterranean
Terminal
Rehabilitate,
operate, and
transfer
2005 20 49%
Ministry of Public
Works and
Transport
Port of Djen
Build,
rehabilitate,
operate, and
transfer
2009 30 50%
Ministry of Public
Works and
Transport
Ports of Algiers
Build,
rehabilitate,
operate, and
transfer
2009 30 50%
Ministry of Public
Works and
Transport
Source: Authors based on World Bank’s database on Private Participation in Infrastructure (WB, 2019).
Further to the above three initiatives, two additional projects are mentioned in public literature
which relate to management contracts for the operation and maintenance of the Houari
Boumediene Airport (Algiers International Airport) and Metro of Algiers. Not involving
rehabilitation and/or development of new infrastructure, these type of projects are not the
specific focus of this study.