Risk Management in Transport PPP Projects
In the Islamic Countries
174
container terminals have a duration between 25 and 30 years. The two management contracts
had an original duration of less than 10 years (WB, 2019). These periods are in line with
international practices. There are also no provisions regarding the timing required to perform
the contract return process before the expiry of the concession period. The adoption of the PPP
institutional model partially mitigates the risks associated with contract closure procedures on
the public side. On the other hand the definition of standard practices concerning the transition
from an existing concession to a possible new agreement, by increasing transparency in the
management of PPPs may result in an increased confidence of the private sector in the
development, operation and management of public infrastructure and services in the PPP
market in Algeria. The adoption of such provisions should however occur within the scope of
the elaboration of a dedicated regulatory framework or binding guidelines for PPP initiatives.
Follow up
Follow up procedures are currently in place concerning public procurement by the National
Regulatory Authority for Public Procurement. Major projects and PPPs monitoring activities
and follow up analyses are performed by CNED . A permanent observatory of public
procurement is in place by the National Regulatory Authority for Public Procurement at present
and a database of major project development and implementation is also in use by CNED. These
tools seem to allow an ex-post assessment of the monitored initiatives and thus support the
identification of lessons learned to improve policy and procedures relating to infrastructure
development and procurement of works and services in Algeria. Nevertheless these activities
appear to be general rather than specific to PPPs and primarily focused on the project
preparation and procurement phases of the project life-cycle. Monitoring and subsequently
follow up should preferably be specific to PPP initiatives to reflect their complexity
compared to projects implemented through conventional public procurement and should be
preferably performed with reference to both the individual project level and the system
of PPPs as a whole within the specific sector or national economy. The setup of a PPP
unit/department within the line Ministry and of a dedicated PPP unit would be generally
appropriate to support the monitoring process of the PPPs, and specifically useful for the ex-
post assessment of the PPPs. A central PPP database could be developed on the basis of the
existing tool already in use by CNED, covering all phases of the project life-cycle. This would
enable identifying success stories as well as systematically and systemically analyze the
performance of the PPPs with reference to internal and external factors influencing their
performance, thus making effectively possible the management of the risks associated with their
delivery.
5.4.8. Conclusions and recommendations
Conclusions
The case study on the risk management practices currently applied to PPP projects in the
transport sector in the People's Democratic Republic of Algeria reports on the main findings
based on the review of existing relevant literature and documents.
The following issues have been identified in the study affecting the different stages of project
life-cycle: