Risk Management in Transport PPP Projects
In the Islamic Countries
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country. A recent study reports about three main obstacles concerning the development of
Islamic banking and financing in Algeria: the most relevant barrier is represented by the lack of
a regulatory framework; other two problems relate to the unavailability of institutional capacity
and qualified professionals, and a third one relate to the need of public awareness for promotion
of Islamic banking and finance (Hacine Gherbi, 2018). Based on publicly available
information45, at the end of 2018 a regulatory framework has been however set up by the Bank
of Algeria, which is deemed to set the basis for the expansion of Islamic banking and financing
services in the country. According to Algerian Authorities the development of Islamic finance,
also named “participation banking”, in Algeria is expected to improve the economic and
financing conditions of the country thus increasing the capacity of Algeria to face the challenges
associated to the dependence of the local economy on oil prices fluctuations.
5.4.3. Pre-tendering decision process
Screening for PPP suitability
In absence of a PPP dedicated legal framework and planning and development system, the
identification of PPP suitable projects and the decision about their implementation under
the PPP model is made on a case by case basis in Algeria. Due to the relatively low number of
experiences in the transport sector, particularly related to the implementation of works, an
example is reported in the following Box concerning the conception, development and
implementation of the PPP project relating to the container terminal at the port of Bejaia.
In general terms all major projects of national interest regardless their implementation as PPP
or through conventional public procurement are identified or in any case approved by the
National Investment Commission. This is done on the basis of a project case that is prepared
by the line Ministries and/or their delegated/controlled bodies, who have sole responsibility
concerning project preparation, implementation, as well as subsequent monitoring activities at
the operational stage. Project cases, including pre-feasibility analyses shall be prepared on the
basis of the major project preparation guidelines elaborated by CNED in 2008. Once prepared
these projects are submitted to the Ministry of Finance (General Budget Directorate) and CNED
as a consultative body is in charge of their supervision. CNED reviews all phases of project
preparation and implementation up until the completion of construction works. Once identified
for development by the governmental authorities, feasibility studies shall be prepared by the
line Ministry and/or delegated/controlled authorities, also considering any comment made by
CNED on the pre-feasibility analyses. Feasibility studies are also subsequently reviewed by
CNED, who shall also give an additional third opinion on the project design related
documentation before procurement. During procurement CNED is involved in the monitoring of
the implementation of the project. An ex-post assessment review of the implemented projects is
also made by the Fund. The department structure of CNED presented at previous section above
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