Risk Management in Transport PPP Projects
In the Islamic Countries
14
Statistics and surveys
In order to mitigate financial sustainability risks pre-feasibility and feasibility studies should be
elaborated by means of in depth analysis of the risks related to network development effects on
the project and deployment of updated transport models accurately calibrated on the basis of
real data and/or surveys, including willingness to pay surveys.
Transparency increases confidence in the market by private investors and reduces corruption
risks. This should also be pursued by adopting open data policies concerning preparatory and
feasibility studies, transport statistics, cartography, transport models etc. The collection and
publication of information and data on the management of contingency liabilities and fiscal
risks, as well as the performance of the PPP contracts is also recommended that will overall
improve the management of political and legal risks.
Capacity-building measures
Capacity-building measures positively impact on the overall improvement of risk
management practices. The institutions involved in the preparation, implementation and
monitoring of the PPPs should have adequate financial resources, competences and authority to
perform directly their tasks or hire experts.
The experience gained on the basis of learning by doing approach should be preserved and
valorized in any possible changes of the institutional settings. Training programs are suggested
for consideration that could take the form of workshops to valorize the best practices already
implemented in the country. In line with successful experiences in the investigated countries
International Funding Institutions and Multilateral Agencies may be also involved in the
organization of capacity-building initiatives. These may involve international professionals and
experts to deliver specialized courses and may also foresee institutional visits to other countries
to exchange and share experiences and learn about specific procedures and use of technical
tools. COMCEC may also consider promoting and coordinating similar initiatives either country
specific or involving more countries. Support from International Funding Institutions or
Multilateral Agencies might be also sought in this respect. Training on the deployment of Islamic
finance should finally be taken into account, concerning the regulatory and institutional settings
required for the adoption of Islamic finance solutions and the financing of PPP initiatives.
Where the number of PPPs is limited or where no experiences exist, PPP pilot projects involving
limited financial and fiscal risks should be preferably identified and technical assistance
support sought for their preparation and implementation, also involving International Funding
Institutions and Multilateral Agencies.
Follow up measures
Control, supervision and guardianship monitoring reports should feed into a centralized
databased of PPP initiatives under responsibility of the PPP unit or entity responsible for the
state budget and the authority/authorities responsible for sector regulation. Particularly in
those countries where a number of PPPs are active or expected to be implemented a systemic
and systematic process of monitoring PPPs should indeed be in place for an appropriate
accountability as well as technical/regulatory supervision of the PPPs. All phases of project