Risk Management in Transport PPP Projects
In the Islamic Countries
29
Table 5: Conceptual framework
Risk governance
dimensions
Investment
phases Risk
Identification
Risk AssessmentRisk Allocation/
Sharing
Risk Monitoring
Risk
Treatment/Reme
dies
1. Strategy and policy
 Political support and strategies
 Legal provisions
 Institutional arrangements
 Investment attraction
+++ ++ ++ + +
2. Pre-tendering decision process
 Screening for PPP suitability
 Special arrangements for PPPs
+++ +++ +
3. Procurement and contracting
 Procurement strategies
 PPP contractual arrangements
 Performance metrics
 Remuneration
+++ ++ ++
4. Construction and asset delivery
 Management of risks during design phase
 Management of risks during construction
+++ +++
5. Operation
 Management of risks during operation
 Bonus/malus schemes
 Contract renegotiation
+++ +++
6. End of contract
 Contract return
 Follow up
+ + + + +
Source: Authors.
The detailed presentation of the conceptual framework in the next paragraphs follows the six
investment phases which are summarized below:
1. As a first phase, Strategy and policy refers to the political and institutional context and
the legal framework in relation to transport PPPs;