Risk Management in Transport PPP Projects
In the Islamic Countries
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contract; estimated capital cost; capital expenditure; stakeholders; tendering committee;
monitoring reports; KPIs; risk allocation. The updating of this database, however, has
unfortunately been discontinued, in view of likely new developments as regards the structure
of the unit and the overall government strategy towards investment projects. The government
is in fact expected to push for having a unified database for all infrastructure projects (not only
PPPs). Nevertheless, the database set up by the PPP unit does not include PPP projects managed
by ADC. The latter has not a formal system to keep track of the main features of its PPPs.
However, ADC always look back at existing PPP contracts when it has to develop a new PPP
project.
No evidence of sufficient risk-specific training activities has been found (neither at the central
level, nor in ADC), nor an effort to identify which are the most pressing knowledge gaps to be
filled in this field on the side of public administration. A learning by doing approach has been
mentioned by ADC.
In light of the fact that no transport PPP has yet reached its final stage in Jordan, it is instead too
premature to discuss ex-post evaluation.
5.5.8. Conclusions and recommendations
Conclusions
In general terms, PPP transport projects in Jordan are characterized by a well-developed
regulatory framework, complemented by detailed (but not sector-specific) PPP guidelines.
Nevertheless, the implementation of such framework is still limited. Indeed, the two main PPP
project were implemented before the adoption of the current PPP law and the establishment of
the PPP unit. Also, at the moment the PPP framework does not apply to PPP projects promoted
by ADC in the Aqaba Special Economic Zone. These limits affect the risk management practices
as well. Despite having set out clear procedures for dealing with risks in PPPs, their
implementation in the transport projects is still at an infancy stage. So far, the low number of
transport PPP projects hampers the possibility for Jordanian authorities to gain significative
experience on transport-related risk management. Against this background, the following
conclusions can be put forward.
 The national government is supportive of PPPs and has proved to be a reliable partner for
private operators. Thanks to political and monetary stability, as well as the established
cooperation with international organizations and IFIs, PPPs in Jordan represent an
attractive investment opportunity for foreign investors;
 While on paper the legal framework and the PPP guidelines are appropriate, nomeasures
appear to be taken to ensure an appropriate level of administrative capacity in risk
management practices. As such, PPP guidelines run the risk of being overlooked;
 While the establishment of the PPP unit proved to be useful to catalyze effort around PPPs
and to develop and promote the PPP guidelines, the actual involvement of the PPP unit
in the whole cycle of the PPPs is questionable. So far, they acted as a filter between
contracting authorities and the PPP Council rather than a coaching and mentoring body;