Risk Management in Transport PPP Projects
In the Islamic Countries
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5.7.3. Pre-tendering decision process
Screening for PPP suitability
The Presidency of Strategy and Budget (PSB) of the Republic of Turkey in consultation with the
Ministries defines the five years National Development Plan. In line with this plan the Ministries
elaborate five years sectoral master plans.
Turkey started implementing PPP projects already in the 1980s; however, the number of PPPs
gradually increased and became significant during the Ninth and Tenth Development Plans
period, i.e. during the last ten years: 2009-2018. In consideration of the growing number of PPPs,
the Tenth Development Plan already considered PPPs as a priority area for further development.
Considerations were also already made about the opportunity to improve the legal framework
and institutional settings for the appropriate management of the existing and future PPPs. The
use of the PPP model was commented to be a necessary and useful tool for the implementation
of national priority projects. However, the plan did not include a predefined list of projects.
Although relevant plans may provide general indications on the projects candidate for PPP, the
identification and decision of the PPP projects was and still is postponed to subsequent
stages. The Eleventh Development Plan includes in this regard a list of projects to be possibly
implemented as PPP. In line with current legal provisions and practices, every single initiative
to be possibly implemented as a PPP shall however undergo a specific screening procedure
summarized as follow:
 The Ministry of Transport and Infrastructure prepares feasibility studies for those
projects that according to national strategies and needs may be implemented as PPPs. The
Ministry generally delegates the preparation of feasibility studies to the main procuring
authority for the PPP projects in the transport sector (AYGM, DHMI and KGM);
 Once finalized, feasibility studies are submitted by the Ministry of Transport and
Infrastructure to PSB. The Ministry of Treasury and Finance will also review the feasibility
studies to verify the possible burden/fiscal risk the project may create on the central
government budget, for those projects potentially requiring debt assumption commitment
by the Turkish state and/or by the Ministry of Transport and Infrastructure (excluding
airport investments). Based on this process PSB provides its review on the project to the
President who will ultimately grant the procuring authority the right to develop the
project under the PPP model. After receiving the approval of the President, the contracting
authority implements the tendering process, negotiates and signs the PPP contract;
 Based on the authorization by the President the Ministry of Transport and Infrastructure
through AYGM, DHMI or KGM develop internally or involving specialized consultants the
project design (limited to BOT initiatives) and prepare and implement the tendering
process for the selection of the PPP contractor;
 Contract signature requires a second authorization in case of a debt assumption. The PPP
contractual documentation, prepared by AYGM or KGM, is submitted by the Ministry of
Transport and Infrastructure to theMinistry of Treasury and Finance as appropriate. Once
approved by the Ministry of Treasury and Finance the PPP contract can be signed.