Risk Management in Transport PPP Projects
In the Islamic Countries
250
5.7.8. Conclusions and recommendations
Conclusions
The case study on the risk management practices currently applied to PPP projects in the
transport sector in the Republic of Turkey reports on the main findings based on a) the review
of existing relevant literature and documents, and b) the outcome of interviews with the teams
of the main procuring authorities involved in the implementation of PPP projects (AYGM, DHMI
and KGM).
The following main issues have been identified in the study affecting the different stages of
project life-cycle:
 Absence of guidelines/checklists for risk management;
 Fragmentation of the monitoring process of the PPPs, based on standard templates and
reporting frequency;
 Gap of capacity of the human resources in the management of the risks associated with
PPP projects;
 Partial utilization of the existing database on PPPs set up by the Presidency of Strategy
and Budget (PSB).
A “legal attitude” to PPP risk management seems to be dominant in the transport sector in
Turkey where risks are identified, allocated and treated predominantly at the stage of contract
preparation and financial/commercial closure for their consideration in the contractual
documentation. Consideration could instead be given to integrate and combine this legal
approach with an economic approach thus integrating risk identification, allocation and
treatment-related analysis, with risk appraisal (ex-ante), monitoring and evaluation (ex-post).
The study seems indeed showing that gaps relate to the strategy and policy and pre-tendering
decision process stages of the project life-cycle. Additionally, a monitoring system of PPPs is not
used effectively for the planning and monitoring of the PPPs from project idea to project closure.
The above analysis seems in line with the considerations andmeasures proposed in the Eleventh
Development Plan of the Republic of Turkey, where the reform of the PPP national framework
from a project related approach to a systemic approach is proposed.
Policy recommendations
On the basis of the above-identified issues the following set of policy recommendations is
proposed which could be also considered as part of the reforms assumed to be adopted by the
Eleventh Development Plan of the Republic of Turkey for the reform and strengthening of the
PPP system in the country over the next 5 years period, up to 2023:
 Political measures: Projects should be selected for PPP implementation minimizing the
need for state guarantees to increase their bankability. The preparation of an indicative
pipeline of PPP projects should be considered in this respect, and may also be used to
cluster and rank projects according to their Value-for-Money and value-added for society.
Such a list could also provide a basis for discussion with the financial stakeholders aimed