Risk Management in Transport PPP Projects
In the Islamic Countries
30
2. The Pre-tendering decision process refers to the procedures adopted at the appraisal
phase of transport PPP projects and the reasons behind the adoption of PPP as a
procurement method;
3. The third phase refers to the different solutions adopted for the Procurement and
contracting of works and services and the different typologies of PPP arrangements;
4. Under the Construction and asset delivery phase, the analysis will address the
systems to cope with different types of risks that challenge the project outcome before
asset delivery and the monitoring systems in place;
5. The Operation phase refers to the management of risks during service delivery by the
private sector, as well as to the possibility to renegotiate the contractual arrangement;
6. Finally, the study will analyze the last steps of the contract agreement and its End, as
well as the existence of mechanisms to systematically follow up on risk management
practices and learn from experience.
Each of the investment phases is analyzed with a focus on the risk governance dimensions
relevant at that phase.
In addition to the six phases summarized above, capacity-building has been identified as a
cross-phase element. For each phase of the project life-cycle, the study examines which are the
necessary tools for risk management of transport PPP projects, analyzing the need for capacity-
building measures to ensure the necessary level of skills in the involved staff.
Risk management principles have been the target of specific analysis in the extensive literature
on PPPs: they are covered in professional and academic literature, handbooks, guidelines, and
various online tools to assist stakeholders in preparing, structuring and executing PPPs. As an
example, the following works have dealt with the topic combining it with a project life-cycle
approach.
 Zou et al. (2008) propose a risk allocation framework from the perspective of the project
life-cycle, whereby risk identification and assessment start at the feasibility study stage
and are carried out through the operation and transfer stages with continuous monitoring.
The framework accounts for the dynamic process of allocating and monitoring risks and
aims to promote a balance of interests, ultimately leading to the realization of Value-for-
Money for all different parties;
 Mouraviev (2012) underlines the possibility of unknown or unexpected risks due to
sudden changes relevant to the project, such as legislation changes. Therefore, risk
management includes not only initial risk allocation specified in a contract, but also
additional allocation and/or reallocation that may stem from unforeseen factors;
 The Economist Intelligence Unit (2013) points out the need for a flexible risk management
system, which identifies risks at each stage of a project and clearly identifies and allocates
responsibilities accordingly;
 The APMG Public-Private Partnerships Certification Guide (2016) highlights how the bulk
of efficiency gains achieved through PPPs stem primarily from a successful risk