Risk Management in Transport PPP Projects
In the Islamic Countries
169
Whilst risks related to PPP initiatives in the transport sector seem to be somehow assessed at
the stage of appraisal of the feasibility studies by CNED, there are no legal provisions and
standard risk matrices in use in Algeria (WB, 2018). It is also not entirely clear whether a
monitoring and management process related to project risks is performed in the country. The
elaboration of a PPP framework law could also facilitate risk management practices defining
risks as well as institutional responsibilities and timing of risk evaluation and monitoring
reporting also making reference to the use of guidelines/pre-defined models for ex-ante
appraisal and ex-post assessment. As already explained in previous sections above CNED is
already involved in the monitoring of the PPPs, whereas the Regulatory Agency on Public
Procurement is also monitoring the contractual procurement and is involved in dispute
resolution. However risk management should not only be relegated to the CNED and CNM, but
it should be also implemented by the procuring authorities and lineMinistries that have ultimate
sector responsibility. The adoption of standard contract models for PPPs by sector is also
recommended to increase confidence amongst bidders and to incentivize investors to take a
long term view of their investment in Algeria (EIB, 2011).
Performance metrics
According to legislation, line Ministries or their delegated/controlled procuring
authorities are responsible for the monitoring of the timely implementation of the
projects and subsequently of the operation of the infrastructure and services. Further to
the involvement of specialized departments and bodies from the public administration,
procuring authorities in Algeria may hire specialized experts such as independent supervisors
and engineers in order to perform monitoring activities. Furthermore the officials involved in
the procurement commissions and supervision of the implementation of public works and
services related contracts shall receive appropriate training . Progress and completion reports
concerning the implementation of the public works related contracts shall be elaborated by the
entities involved in the supervision and control of the execution of the contracts aimed at
ensuring the project is implemented in line with the expected objectives, respecting the
estimated costs and time-schedule. Contracts shall define and specify all required levels of
supervision and control as well as the entities responsible for the supervision and control
of the performance of the contractors. Forms are also foreseen for the collection of relevant
data and information on a periodical basis. Further to the procuring authority, CNED under the
Ministry of Finance is involved at least in the project implementation phase and the National
Regulatory Authority for Public Procurement (Commission Nationale des Marchés Publics –
CNM), also under the Ministry of Finance supervises the procurement process and provides
opinions on the contractual arrangements (WB, 2018).
Several different levels of supervision and control measures appear to be effectively in
place in Algeria which are also foreseen by the law on public procurement. Standardized forms
of control seem however to be primarily focused on the procurement phases and no measures
seem to be specifically foreseen for PPP initiatives, again reflecting the absence of a national
policy on PPPs and dedicated regulatory framework. Accordingly a PPP implementation manual
or guidelines and a risk mitigation mechanism which considers the evolving nature of project