Risk Management in Transport PPP Projects
In the Islamic Countries
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Interestingly, international organizations, IFIs and multilateral banks did not stop being involved
in the QAIA project with the end of the tendering procedure. On the contrary, in order to finance
an expansion of the airport to meet traffic growth, in 2014 IFC provided a USD 21 million loan
and arranged a further USD 47 million syndication. The Islamic Development Bank participated
in this second package as well, through a USD 25 million loan. More recently, in 2019, the EBRD
has instead invested in the airport by acquiring an indirect equity stake in Meridiam (EBRD,
2019).
5.5.3. Pre-tendering decision process
Screening for PPP suitability
In Jordan, the process leading to the implementation of a transport PPP project opens with the
identification by the Transport Ministry (acting as the public contracting authority) of a
candidate project for PPP. The goal of this preliminary screening for PPP suitability is to avoid
conducting burdensome PPP studies on all potential projects and select only the most
appropriate ones for PPPs. According to the PPP guidelines (PPP unit, 2019), such projects
should have specific features, among which:
 They should be priority projects, with high-level support within the public contracting
body;
 They should be relatively large investments, with an initial estimated investment and
operating costs generally greater than approximately 15 million JD (about USD 21million),
as smaller projects may not justify PPP preparation and transaction costs;
 They should have long useful operating lives of at least 5 years or more;
 There should be a likely private sector interest in providing the project and service;
 They should require the ongoing delivery of services over the life of the project (as
opposed to only the construction of a new asset or facility);
 They should not rely on new, untested, or experimental technologies;
 There should not be a foreseeable significant opposition from stakeholders such as labor
organizations and end-users.
This first simple screening is the precondition for the assessment which is part of the initial PPP
project application. Each priority project which fits the abovementioned criteria is subject to a
suitability test, or “PPP Suitability Checklist” in the words of the guidelines. Eleven project
characteristics are tested, for which the guidelines suggest straightforward questions to be
asked. Among the eleven characteristics, there are:
 Need for the investment ;
 Nature of the investment and suitability for PPP (e.g. “will the project impose any end
user charges?”, “are there any special risks or constraints to the project - such as
environmental, traffic, heritage, archaeological, or other constraints?”);