Risk Management in Transport PPP Projects
In the Islamic Countries
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 Submission of the proposal by the bidders, including an administrative declaration, a
technical offer and the an economic/financial offer (as well as a financial model if
required), which will be subject of evaluation as part of the tendering process;
 Opening assessment and evaluation of the bids and provisional award of the contract to
the first classified bidder and conjoint communication to all bidders of the outcome of the
procedure. Possibility by interested unsuccessful bidders, to request access to the offer
submitted by the preferred bidder. Award notices are published in the same media where
the request for proposals were also published;
 Negotiation of the offer and PPP contract that according to existing literature occurs on
the basis of a draft contract enclosed to the tender dossier, specified that a standard model
does not seem to be in use. Concerning the terms of the offer, according to legislation, these
can be discussed provided that this does not results into distortion of the conditions of
competition at the basis of the procurement procedure;
 Conclusion of the PPP commercial contract including its elements (e.g. financial agreement
etc.), and its subsequent implementation.
Based on the World Bank’s database on Private Participation in Infrastructure all the 5 PPP
projects in Algeria, except the Metro d’Algiers, were procured through direct negotiation (WB,
2019). According to the example of the port of Bejaia container terminal PPP project this appears
to be justified on the basis of the very specific competences of the private party. The lack of a
dedicated PPP regulatory framework and an institutional setting with little experience in PPPs
associated with the complexity of PPP initiatives make direct negotiation an easy option to
simplify difficulties in project preparation and implementation. However the excessive use of
the direct negotiation procedure may be seen as a lack of transparency by the market.
Furthermore the recourse to direct negotiations may increase the risk of corruption practices.
Transparency in public procurement processes represents a mitigation measure to corruption.
More importantly strengthening of the institutional setting and adopting a PPP dedicated
regulation framework could also improve the procurement process of PPP initiatives in Algeria
and reduce the recourse to direct negotiation.
PPP contractual arrangements
Due to the absence of a dedicated regulatory framework for PPPs in Algeria the existing
legislative provisions are not detailed about the specific types of contracts implementable in the
country under the PPP model. Based on publicly available information from the World Bank
database on Private Participation in Infrastructure (WB, 2019), the following concession sub-
types have been already implemented in Algeria in the transport sector:
 Build, rehabilitate, operate, and transfer;
 Rehabilitate, operate, and transfer;
 Management contract.