Risk Management in Transport PPP Projects
In the Islamic Countries
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generally reflects the phases of the supervising and monitoring activities performed by the
Fund.
According to the World Bank Procuring Infrastructure Report on PPPs in Algeria for the year
2018, the following types of analysis are performed in practice as part of the preparation of the
major projects and PPP initiatives in Algeria:
 Cost-Benefit Analysis and analysis of socio-economic impacts;
 Affordability assessment, including the identification of the required long term public
commitments (explicit and implicit, direct and contingent liabilities);
 Risk analysis including risk identification, allocation and assessment;
 Public sector comparator and Value-for-Money analysis to assess whether the project
is best implementable under the PPP or public procurement models;
 Project bankability assessment;
 Market assessment.
Box 26 Development and preparation of the PPP initiative for the Bejaia Mediterranean
Terminal - BMT
At the end of the 1990s, beginning of the 2000s the management of the Port of Bejaia Public Owned
Enterprise (Enterprise Portuaire de Bejaia - EPB) and of its hinterland logistics zone (Zone
Logistique Extra Portuaire – ZLEP) identified the main gap of this logistic node in the lack of
adequate port and hinterland logistics infrastructure, equipment and technical skills and
competences to operate in the growing global container market. Within this context EPB elaborated
in 2004-2006 a port development plan foreseeing the need to establish a PPP for the design,
financing, operation and maintenance of a container terminal at the port of Bejaia. In parallel EPB
also prepared a business plan to be used as a base case for the setup of the PPP. This foresaw the
development and implementation of the project according to the adoption of the institutional PPP
model, requiring the setup of a public-private SPV. The business plan included details concerning
the objectives and scope of the partnership, its duration, the financing structure of the project, the
role and responsibilities of the partners, their specific tasks and related time-schedule (Aoumad,
2017).
On the basis of the business plan elaborated for the project EPB started looking for potential private
candidates. The selection of the private partner was made on the basis of a direct negotiation which
resulted in the appointment of Portek International Pte Ltd. Based on instructions from the
Ministry of Public Works and Transport a consultation process to collect expressions of interests
from the market was also made. The appointment of Portek resulted in the signature of a JV
agreement, which occurred in 2003. This specified the roles and responsibilities of the two entities
within the SPV. EPB would have be responsible for the provision of the basic terminal port
infrastructure including quay, terminal area and its interconnection with the railway network.
Portek would have provided the superstructure facilities and equipment, including ICT technology
for its operation (Aoumad, 2017).