Risk Management in Transport PPP Projects
In the Islamic Countries
165
place even before the adoption of a PPP dedicated regulatory framework (KDI, 2014; CNED,
2015).
In 2018 a workshop has been organized in Algeria involving CNED, international experts and
the Algerian authorities involved in the preparation, implementation and monitoring of major
projects and PPP46 . The workshop was aimed at discussing the methodologies related to the
evaluation of major projects and the guidelines in place for ex-post assessment. According to the
discussion held at the workshop, improvements are required at the ex-ante appraisal stage
of major projects, with a need to increase the quality of the projects in terms of identification
of their objectives and targets and grade of coherence with the national development and sector
master plans and strategies. The opportunity to adopt more/different feasibility indicators was
also discussed and the need to develop an awareness and culture of high quality project
preparation and capacity of the public administration in the preparation of the projects.
Special arrangements for PPPs
As mentioned above, despite the number of PPP initiatives implemented in the country overall,
Algeria does not have a PPP dedicated regulatory framework and institutional setting. PPPs are
generally conceived and implemented on a case by case basis notwithstanding the fact that
provisions are gradually being included in the existing legislation on public procurement and
finance, as well as investment promotion and relevant national and sector development plans.
This is aimed at increasing the participation of private investors and operators in infrastructure
modernization/development and operation to tackle the challenges related to technology
evolution, economic and finance globalization also reducing the dependency of the nation
on oil market. PPPs are basically implemented according to public procurement procedures set
in the public procurement code and within the public procurement institutional setting. Whilst
this is not the most appropriate context to develop, implement and monitor PPPs due to their
specificities and complexity, according to literature special arrangements could be done for
specific initiatives also by means of introduction of specific legal provisions, something that
occurred particularly in the water sector (KDI, 2014). PPPs, and particularly the ones involving
international companies, are also subject to several provisions concerning foreign investments,
that as already commented in the previous sections above are considered to represent a barrier
to attract international investors and lenders (EIB, 2011; KID, 2014).
On the other hand CNED, under control of the Ministry of Finance, has started performing
several tasks specific to PPP units such as PPP regulation and policy guidance, identification
and selection of PPP initiatives, capacity-building for other public authorities, promotion of PPP
initiatives among the public and/or private sectors at the national and international level,
technical support in implementing PPP projects, supervision of PPP project implementation.
Nonetheless this entity has no remits concerning the revision of fiscal risks born by the public,
consultation with affected communities on potential impact of PPP projects and approval of PPP
projects or undertaking the procurement of PPPs (WB 2018).
4