Risk Management in Transport PPP Projects
In the Islamic Countries
249
Follow up
As mentioned, many of the PPP initiatives in the transport sector are at the early stage of their
life-cycle with many projects under construction and others at the beginning of their operation
period. Several PPP dedicated teams within the procuring authorities and supervisory bodies of
the Turkish administration have been set up which have gained substantial experience in the
development and implementation of PPP projects in their respective fields of operation. The
Turkish Authorities consulted for this study report that this experience is the outcome of a
learning by doing approach . The Eleventh Development Plan of the Republic of Turkey
foresees the further strengthening of the capacity of the Turkish administration in the
management and supervision of PPPs. This also appears to include training and capacity-
building initiatives.
A systematic reporting system is already in place in Turkey that is based on the elaboration and
transmission of monitoring reports issued by the contractors to the procuring authorities and
by the latter to the Presidency of Strategy and Budget (PSB). The monitoring system in place
between the contractors and the procuring authorities is focused on the performance of the
individual projects, whereas the one in place between the procuring authorities and PSB is
ultimately related to the control and of the liabilities and fiscal risks of the PPPs in the wider
framework of the management of the state budget. Accordingly, reporting procedures seem to
be more structured regarding the transmission of financial-related information than on the
other elements of the PPP contracts. As part of this risk management practices a fiscal risk
bulletin in a form of a quarterly internal report, specific to PPP projects is also prepared by the
Ministry of Treasury and Finance, which is however limited to those BOT schemes involving
loans subject to debt assumption agreement [i.e. Eurasia Tunnel Project, Odayeri-Paşaköy
Section (including the Third Bosphorus Bridge) of the Northern Marmara Motorway, Gebze-
Orhangazi-İzmir Motorway (including the Izmit Gulf Crossing and access roads), Northern
Marmara Motorway- Kınalı-Odayeri Section, Northern Marmara Motorway - Kurtköy-Akyazı
Section, Çanakkale-Malkara Motorway (including 1915 Çanakkale Bridge), Ankara-Nigde
Motorway]. The Ministry of Treasury and Finance is also publishing monthly and annual Public
Debt Management Reports, including details on the same assets (Ministry of Treasury and
Finance, 2015).
As commented in previous sections a more systemic and structured reporting activity could
be implemented concerning all phases of the project life-cycle of the PPPs and including
information on all PPPs. A database appears to be already in place under the responsibility of
the Presidency of Strategy and Budget (PSB), which according to the reforms assumed by the
Eleventh Development Plan of the Republic of Turkey may become a monitoring tool to be used
for risk management purposes providing inputs in terms of best practices or lesson learned as
well as ex-post evaluation activities.