Risk Management in Transport PPP Projects
In the Islamic Countries
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Box 25 Transfer of know-how and competences in PPP institutional initiatives: the
examples of the Houari Boumediene Airport and Metro of Algiers projects
Albeit not involving the development and implementation of construction works the Houari
Boumediene Airport and Metro of Algiers PPP initiatives are worth mentioning in this report as
both initiatives have been subject of a doctoral research on the effectiveness of PPPs in
transferring know-how and competences to the local staff (Hadjar, 2014). Three case studies have
been selected for empirical analysis as part of the research including one Joint Venture in the
water sector and two in the transport sector, namely the Joint Ventures between the Société de
Gestion des Services et Infrastructures Aéroportuaires – SGSIA and Aéroports De Paris – ADP and
the Entreprise du Métro d’Alger – EMA and the Régie Autonome des Transports Parisiens
Development (RATP Dev.). The first Joint Venture started in 2006 and completed in 2014 related
to the operation and maintenance of the Algiers International Airport and the second one, set up
in 2011 and completed in 2018 concerns the operation and maintenance of the Metro d’Algiers.
Both were set up with the main purpose of benefitting from the experience and know-how of the
international companies in their respective fields of operation. As part of the contracts training
activities of the local personnel and particularly the managers of the Algerian public partners
were also foreseen. The results of the research are generally positive in terms of transfer of know-
how and competence in the three PPP contracts, specified that:
 The activities relating to the transfer of competences to managers are effectively put in
place although with some delay. Annual progress monitoring is performed;
 The transfer of know-how to the local organization and the capacity of the local managers
to become self-sufficient seems to require longer time than expected;
 Effectiveness in transferring of knowledge seems also to be related to the duration of the
PPP contract.
Algeria has implemented a number of institutional PPPs in the past trying to benefit from the
transfer of know-how and competences from foreign public and private companies. Over the
course of the past decades Algeria has gradually started a transition process from a centralized
economy to a market-oriented economy, and particularly since the beginning of the years 2000s
under the impulse of globalization the country started including provisions concerning PPPs in
the relevant strategic development plans aimed at reducing the dependency of the country
economy on the oil sector. In 2005 Algeria started elaborating its National Development Master
Plan 2025 (Schéma National d’Aménagement du Territoire, SNAT), subsequently approved in
2010. Together with the SNAT, sector master plans have been also prepared and a 2010-2014
five years Public Investment Plan was also elaborated setting an ambitious program of
infrastructure development including the implementation of USD 35 billion investments for
railway and urban transit schemes developments. The opportunity to consider alternatives to
public procurement, recurring to private sector financing was mentioned in the National
Development Master Plan, which was subsequently recalled by the government in the