Risk Management in Transport PPP Projects
In the Islamic Countries
176
in the wider socio-economic development vision and strategy of the government. Their
identification should be framed in the wider context of the investments required for the
development of the transport system and their selection should be made reflecting the
capacity of these projects to performpositively and possibly better than other investments
in terms of cost-effectiveness and cost-efficiency analysis. This is required to ensure that
the projects may effectively be attractive to the private sector and investors market also
mitigating the risk of contingent and long term liabilities for the stage budget.
 Institutional and organizational measures: due consideration should be given to the
establishment of a PPP unit with the purpose at least of identifying, planning, appraising
and monitoring PPPs over the course of their life-cycle. As also suggested in other studies,
CNED may represent the appropriate institution in this respect as it is under control of the
Ministry of Finance, it already has reputable experience in the preparation, appraisal and
ex-post assessment of major projects. Also depending on the number of projects to be
developed and subsequently monitored, PPP units/departments may be also set up within
the organisation of the main line Ministries and institutions involved in the planning,
development, implementation and monitoring of PPP projects in the transport sector as
well as within the established Regulatory Authorities. This is suggested to ensure that
projects are effectively monitored and supervised by more entities according to their
competences.
 Technical measures: Developed on a case by case basis in absence of a national PPP
policy, it appears that the public sector in Algeria is not entirely aware of the applicability
and implications of implementing PPP initiatives for infrastructure and services
procurement and management. Further to the adoption of a PPP national policy
sensibilizationmeasures to the managers of the relevant public institutions involved in the
procurement and management of public infrastructure and services should be considered.
 Legislative measures: the adoption of a PPP dedicated regulatory framework should be
considered instead of using the public procurement code due to the specificities and
complexity of PPP contracts. Due consideration should be given to remove or limit barriers
to foreign investments to increase confidence in the Algerian PPP market. To the same
purpose, attention should be given to improve transparency in the procurement,
contracting and monitoring of the implementation and delivery of the PPPs.
 Procedural measures: guidelines should be elaborated tailored to PPP initiatives which
are more complex than major projects developed and implemented under the public
procurement conventional model. These guidelines should relate to the preparation of the
projects, as well as to their implementation and should be binding. Specifically regarding
risk management, standard risk management guidelines and checklists should be
considered for adoption.
 Statistics and surveys: due consideration should be given to institutional transparency,
particularly concerning the collection and publication of information and data on the
management of contingency liabilities and fiscal risks. Monitoring reports on PPP may for
instance be published by CNED or the PPP unit or the Ministry of Public Works and
Transport.