Risk Management in Transport PPP Projects
In the Islamic Countries
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o The Ministry of Treasury and Finance responsible for providing debt assumption
guarantees for the projects which are eligible andmonitoring the project in this regard.
 Contracting Authorities/Procuring Institutions as part of the Ministry of Transport and
Infrastructure:
o The General Directorate of Highways (KGM), acting as procuring authority for
highway projects in extra-urban areas;
o The Directorate-General of Infrastructure Investments of the Ministry of
Transport and Infrastructure (AYGM), acting as procuring authority for commercial
port infrastructure and terminals, touristic marinas and road, rail, and urban transit
transport infrastructure projects located in urban and metropolitan areas;
o The General Directorate of State Airports (DHMI), acting procuring authority for
airports and related terminal projects;
o The Turkish State Railways (TCDD), acting procuring authority for railways and
related station projects.
The institutional setting related to PPPs in Turkey seems reflecting the fragmentation of the
legislative context currently in place in Turkey. A central public body responsible for setting PPP
strategies and policy, coordinate project identification, appraisal and selection, monitoring and
supervising PPP procurement initiatives and contract implementation is not existing at present.
The Presidency of Strategy and Budget (PSB) appears to perform several of such tasks in the
elaboration of the five years Development Plans of the Republic of Turkey, also identifying the
most relevant initiatives to be possibly implemented as PPPs. This institution also reviews the
feasibility studies submitted by the respective procuring authorities and line Ministries to seek
approval for their implementation under the PPP model. PSB is furthermore providing
authorization of PPP projects. In subsequent stages, PSB is also collecting periodical monitoring
reports. PSB also reserves the right to make ad hoc requests to the contracting authorities. A
database of PPPs appears to be in use by PSB fed with the information included in these periodic
reports.
Some governmental agencies have set up PPP dedicated units, such as the Presidency of
Strategy and Budget, DHMI and the Ministry of Treasury and Finance. The Department of
Motorway Operations of KGM is responsible for the development and implementation of PPPs,
although the current organization chart of this institution does not define a dedicated unit or
division. This department performs its duties regarding their PPP projects and contracts sharing
tasks and activities with other departments of the central and regional organization of KGM.
Similarly, a PPP unit is not existing within AYGM.
The institutional setting in place seems to go in the direction of centralizing more and more
activities within the PPP unit within the Presidency of Strategy and Budget (PSB). PSB is already
accomplishing several coordination and supervision activities that a central PPP unit usually
performs. Nevertheless, the existing institutional organization would benefit from a more