Risk Management in Transport PPP Projects
In the Islamic Countries
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under the 2000 Privatization Law) and the 2015 PPP Regulation. Together, they form the
exclusive legal framework for PPP projects in Jordan, including transport PPPs.
The PPP law established a PPP Council and a PPP unit and outlined among others the procedures
for developing PPPs, for unsolicited proposal and for renegotiation. The maximum duration of a
PPP contract was fixed by the Law to 35 years. The following PPP Regulation further specified
PPP procurement and tendering procedures, responsibilities and contract provisions.
Before 2014, PPPs had been regulated by the 2000 Privatization Law, combined with sector-
specific laws. As such, none of transport PPPs listed in was implemented under the
2014 PPP law. Today, the PPP legal and regulatory framework is generally considered by public
and private stakeholders as adequate. Concerns have been voiced however about its actual
implementation. Moreover, the Law is expected to be amended in the near future, with the
introduction of a particular focus on fiscal commitments, currently overseen.
Jordan’s framework for PPPs is complemented by comprehensive PPP guidelines, issued by the
PPP unit in January 2019. This manual sets out in a detailed manner the steps to be followed for
each phase of the PPP project life-cycle. The phases it identifies are:
 Phase 1 - PPP Project Application and Registration : PPP Project Initiation, Screening
and Selection (this phase covers preliminary risk identification and assessment);
 Phase 2 - PPP Project Preparation : Completing the PPP Feasibility and Business Case
(this phase covers risk identification, assessment and allocation);
 Phase 3 - PPP Tendering and Procurement (risk allocation is covered by this phase
as well);
 Phase 4 - PPP Contract Management and Performance Monitoring (this final phase
covers risk monitoring and partly risk treatment).
In terms of risk dimensions, it can be noted that: risk identification and assessment are covered
in a preliminary way by Phase 1 and then by Phase 2 in a more detailed way; risk allocation is
covered preliminarily by Phases 1 and 2 and then by Phase 3; risk monitoring is covered by
Phase 4; risk treatment is partly covered by Phase 4.
In the light of the high level of detail included in these guidelines, they can be used as a good
reference document on PPP procedures in the country. However, it is worth noting that a debate
is currently ongoing to clarify from a legal perspective whether the PPP law, regulation and
guidelines are applicable in Aqaba Special Economic Zone as well. So far, ADC activities have
been guided more by internal procedures and ASEZA requirements (in line with Aqaba’s special
status) rather than by the provisions set out in the national framework.
Institutional arrangements
Based on the current PPP law, the main institutional actors involved in the PPP project life-cycle
are:
 The Public Contracting Body (usually the line Ministry);