Risk Management in Transport PPP Projects
In the Islamic Countries
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Furthermore it also appears that the Algerian Ministry of Finance does not approve PPP
projects before launching the procurement process and before signing the PPP contract, and
there is no dedicated budgeting system of PPPs and an accounting and reporting system
for liabilities arising from PPPs. Actually no other entities than the procuring authority (line
Ministry or controlled/delegated body) approves the project before the launching of the
procurement process in Algeria and the contracts are only approved by the procuring authority
itself before its signature. Notwithstanding the fact that the National Investment Commission
decides on the investments to be implemented and their prioritization, ahead of project
preparation, the existing legislation does not provide for the inclusion of Public-Private
Partnership initiatives in the national public investment system/medium term
budgetary framework (WB, 2018). These elements seem to highlight a risk of lack of
adequate management and supervision of financial and fiscal risks for the state, which
emphasize the relevance of setting up a PPP dedicated regulatory framework and institutional
setting. Concerning the setup of a reporting system of the liabilities arising from PPPs, this
should be implemented under responsibility of the Ministry of Finance or the PPP unit, which
should also be publicly available.
5.4.4. Procurement and contracting
Procurement strategies
Public tender procedures in Algeria may be implemented according to one of the following
forms: open tendering; open tendering with prequalification; restricted tendering; and
direct negotiation. Multistage tendering procedures may also be adopted under the restrictive
tendering procedure for the identification and refinement of technical solutions for projects
presenting particular technical difficulties/specificities. Exceptionally, in duly substantiated
circumstances, the contracting of a PPP may take the form of negotiation and direct agreement
with one or more candidates. This may happen when the economic operator has monopoly or
exclusive capacities compared to the scope of the project. The Line Ministry and the Ministry of
Finance shall approve the use of such a procedure. On the other hand, unsolicited proposals are
not contemplated in the existing legislation (WB, 2018).
The tender dossier issued by the procuring authorities for PPP projects shall include a
description of the overall bidding procedure and steps. Usually standard bidding phases are
structured as follows:
 Bid preparation, promotion and launching of the tender, consisting in the elaboration
project feasibility studies and their finalization under supervision of the CNED, elaboration
of the tender documentation and launch of the tender procedure. According to PPP
legislation public procurement notices are to be issued to the press in Arabic and one
additional language, and shall also be published in the Official bulletin and on Internet
. The information on the tender procedure is published and
available to all tenderers, which includes the feasibility studies and the draft contract. The
period of submit of the bids by the potential bidders shall be commensurate to the degree
of difficulty of the project and its scope;