Risk Management in Transport PPP Projects
In the Islamic Countries
232
As well as simplification of the existing legislation, a single framework for PPPs will also
strengthen the central institutional setting. Besides the new PPP framework will improve the
fiscal reporting activities on PPPs.
Gaps in terms of legislation and risk management, appear indeed to concentrate more at the
strategic and pre-tendering decision process stages of PPPs implementation (IMF, 2018)
than in the subsequent phases of the PPPs life-cycle. Indeed, a centralized database is in use by
the Presidency of Strategy and Budget of the Republic of Turkey. Regular and ad hoc reporting
activities are also already in place between the PPPs concessionary companies and the
procuring authorities and specifically the General Directorate of Highways (KGM), the
Directorate-General of Infrastructure Investments of the Ministry of Transport and
Infrastructure (AYGM) and the General Directorate of State Airports (DHMI) and between the
latter and the Presidency of Strategy and Budget. Notwithstandingminor procedural differences
between the sectors/procuring authorities particularly related to the reporting period, standard
templates are used for collecting primary information on the performance of the contracts
concerning time-schedule of construction works, expenditures, traffic and revenues. A periodic
reporting on PPPs involving debt assumption by the State Treasury is also performed, which is
publicly available on the State Treasury Website.
According to the Eleventh Development Plan of Turkey specific regulations and guidelines
are to be prepared to further strengthening the institutional capacity of the Turkish government
in the management of processes and procedures related to PPP initiatives (PSB, 2019).
Institutional arrangements
The following institutions represent the main governmental institutions and agencies involved
in the development and implementation of PPP projects in the transport sector in Turkey:
 Planning and supervisory bodies:
o The Presidency of Strategy and Budget (PSB), responsible for the elaboration of the
5 years Development Plan of the Republic of Turkey and for providing advisory and
secretary assistance to the President for the approval of the projects which are
proposed for development under PPP model, ensuring the compatibility of a proposed
PPP initiative with national sectoral needs and priorities. This is performed on the
basis of the assessment of project feasibility studies, also checking the suitability of a
proposed project for the PPP method, as well as budgeting the liabilities stemming
from PPPs;
o The Ministry of Transport and Infrastructure as the line Ministry of the PPP
implementing agencies. The Ministry cooperates with the Presidency of Strategy and
Budget (PSB) towards elaboration of the five years Development Plan of the Republic
of Turkey and is responsible for sector specific policy, regulation and planning. The
Ministry is also responsible for the formal submission of projects’ pre-feasibility
studies to the Presidency of Strategy and Budget in support of their application process
for implementation as PPPs; and for signing the PPP contract;