Risk Management in Transport PPP Projects
In the Islamic Countries
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documentation. The membership and qualifications of the team evaluating the tenders are
regulated, and the scores obtained by the tenderers is reported in the outcome notice notifying
on the result of the PPP procurement process. The notice is distributed to all tenderers and a ten
calendar days standstill period is foreseen before the notification becomes effective.
Technical specifications are generally set by the procuring authority, and in most cases, the
project design is elaborated before the tendering stage and is enclosed to the tender dossier. In
line with this practice evaluation criteria do not usually apply to the technical standards of the
project:
 The PPP BOT tenders under the responsibility of KGM are currently evaluated based on
the period offered by the bidders for the operation phase of the PPP contract. In the tender
dossier, the contracting authority sets the length of the construction phase and the demand
guarantee;
 The PPP BOT tenders for commercial ports and touristic marinas under the responsibility
of AYGM are currently evaluated based on the concession fee offered by the bidders,
whereas the procuring authority set the concession period. For the Eurasia Tunnel, AYGM
adopted a different procedure for the evaluation of the proposals which foresaw 30 points
for the financial offer and 70 points for the technical offer as in this case the project design
was to be carried out by the contractor;
 The PPP BOT tenders under the responsibility of DHMI were previously evaluated based
on the overall concession period, including both construction and operation &
maintenance phases. Currently, DHMI awards PPP BOT and TOR tenders based on the
concession fee and profit share offered by bidders; the procuring authority sets the
concession period in the tender.
As of the concession period, also in line with the adopted evaluation criteria this varies between
the different contracts. Based on the data provided by the procuring authorities the contract
duration including both construction and operation ranges from about 6 years to slightly over
40 years, most of the contracts presenting a duration of less than 30 years.
PPP contractual arrangements
PPP contract documentation generally includes:
 The implementation agreement, which is the direct contract between the private party
(SPV) and the procuring authority;
 The credit agreement, namely the contract regulating the financing of the SPV, which
involves the private party, the procuring authority, third parties (e.g. lenders and other
financing institutions such as multilateral development banks, infrastructure development
funds etc…) and the Ministry of Treasury and Finance in case of debt assumption.
The contract documentation also includes several annexes such as insurance contracts, land
concession agreement, construction and operation and maintenance programs, coordination
protocols with the public authorities public utility companies, other entities involved in the
operation of network-wide ITS and ICT systems.