Risk Management in Transport PPP Projects
In the Islamic Countries
153
Reference to specific projects
Reference to the Bejaia Mediterranean Terminal PPP project concerning the rehabilitation,
operation and maintenance of the Port of Bejaia is made in this case study to substantiate the
description of risk management practices in PPP transport projects in Algeria and provision of
recommendations. This initiative has been selected based on availability of information,
however it does not constitute a representative sample of the performance of PPPs in the
country.
5.4.2. Strategy and policy
Political support and strategies
In general terms PPP experience in the People's Democratic Republic of Algeria has so far been
characterized by the adoption of the institutional PPP model both in the transport sector as
well as in other sectors. Joint ventures have been established between state owned enterprises
and international private companies for the rehabilitation and/or new construction of projects
and/or for the operation and maintenance of existing infrastructure and equipment. Concession
agreements have been granted to the corresponding SPVs by the Ministry of Public Works and
Transport. The Table below summarizes the composition of the five PPP projects implemented
so far in the transport sector in Algeria.
Table 32: Institutional PPPs in the transport sector in Algeria – JV Composition
Project Name Type of PPP Algerian Public Entity Private Entity
Bejaia Mediterranean
Terminal
Rehabilitate, operate, and
transfer
Entreprise Portuaire de
Bejaia – EPB
Portek International
Pte Ltd (PIPL)
Houari Boumediene
Airport
Management contract
Société de Gestion des
Services et Infrastructures
Aéroportuaires – SGSIA
Aéroports De Paris –
ADP
Metro of Algiers Management contract
Entreprise du Métro
d’Alger – EMA
Régie Autonome des
Transports Parisiens
Développement
(RATP Dev.)
Port of Djen
Build, rehabilitate,
operate, and transfer
Entreprise Portuaire de
Djen - Djen – EPJ
DP World
Ports of Algiers
Build, rehabilitate,
operate, and transfer
Entreprise Portuaire
d’Alger – EPAL
DP World
Source: Authors based on World Bank’s database on Private Participation in Infrastructure (WB, 2019).
The fact that the institutional PPP model has been adopted in Algeria does not seem to be
unintended. According to the existing legislation on finance, foreign investments in the
production of goods and services in Algeria are possible only in the framework of a partnership
with a local company in which the national resident shareholding represents at least 51% of the
equity. Further to the 49/51 rule, which is mandatory since 2009, some additional regulatory