Risk Management in Transport PPP Projects
In the Islamic Countries
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6. C ONCLUSIONS AND RECOMMENDATIONS
The conceptual framework adopted for the present study combines together the typical phases
of projects life-cycle with typical steps of risks governance dimensions (see matrix at Table 6 in
Chapter 3). The adopted project life-cycle is quite comprehensive. It covers all the phases from
the identification of the project within the wider context of development and implementation of
national and sector investment policies and plans, the subsequent preparation of the projects
by means of elaboration of pre-feasibility and feasibility analyses, to the project procurement,
implementation, operation and transfer. This wide perspective allows taking into account not
only the contractual dimension of PPPs, but also the institutional setting in which they are
embedded. Risk governance dimensions include identification, assessment, allocation,
monitoring and treatment of risks associated with PPPs. The way in which risk governance
dimensions are interrelated with the phases of project life-cycle reflects the following relevant
considerations about risk management practices in PPP projects, namely:
 Risks affecting PPPs can actually materialize at all stages of the project life-cycle as
hampering the project’s inclusion in relevant plans, timely and appropriate preparation,
implementation, operation and transfer;
 The nature of PPP risks is dynamic. It varies not only over the project cycle of an individual
PPP but also over time from a country perspective;
 Risk identification, assessment, and mitigation are key to be performed at the early phases
of the project life-cycle, whereas risks monitoring and treatment practices may occur at
most phases of project life-cycle;
 The dynamic nature of risk management decisions also means that decisions to retain,
mitigate, transfer certain risks in one phase of the project cycle will affect risk exposure
and risk management options in following phases.
In light of the adopted conceptual framework, the analysis of risk management practices
performed as part of the study focused on the phases of projects life-cycle, commenting on
different measures put in place by the stakeholders involved in the identification, preparation,
implementation, operation and monitoring of PPPs to identify, assess, allocate, monitor and
treat risks. Reference to best practices and problems experienced in PPPs has been also made
throughout this report (especially in Chapter 4) to highlight some relevant mechanisms of risks
materialization, origination and remediation. To sum up, life-cycle analysis represents the
analytical approach of analysis whereas risk management practices under each phase were the
focus of the study.
In line with COMCEC requirements all the evidence collected in the context of this study is
conveyed into a set of broad policy measures which - indeed - reflect the phases of projects life-
cycle. These measures include political measures, institutional and organizational measures,
technical measures, legislative measures, procedural measures, statistics, survey and follow up
measures. The policy recommendations presented in this concluding chapter are indeed made
with reference to this set of measures.