Risk Management in Transport PPP Projects
In the Islamic Countries
4
Conceptual framework
Risk governance
dimensions
Investment
phases Risk
Identification
Risk AssessmentRisk Allocation/
Sharing
Risk MonitoringRisk Treatment/
Remedies
1. Strategy and policy
 Political support and strategies
 Legal provisions
 Institutional arrangements
 Investment attraction
+++ ++ ++ + +
2. Pre-tendering decision process
 Screening for PPP suitability
 Special arrangements for PPPs
+++ +++ +
3. Procurement and contracting
 Procurement strategies
 PPP contractual arrangements
 Performance metrics
 Remuneration
+++ ++ ++
4. Construction and asset delivery
 Management of risks during design phase
 Management of risks during construction
+++ +++
5. Operation
 Management of risks during operation
 Bonus/malus schemes
 Contract renegotiation
+++ +++
6. End of contract
 Contract return
 Follow up
+ + + + +
Source: Authors.
Building upon existing international literature an ad-hoc classification of risks has been also
developed, which is presented in the Table below. It is based firstly on a macro-distinction
between context-related and project-related risks, and secondly on further risk categories,
under which actual risks have been listed, aiming to provide a practical overview of the threats
characterizing transport PPPs, i.e. the reasons why a proper risk management is indispensable.