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COMCEC Transport and Communications

Outlook 2018

47

Figure 25: Timeline of the initial transport PPI projects in the OIC region

Source: Author from the World Bank PPI Database

However, past experience of the OIC region on PPP applications calls for major improvements.

A successful implementation of a PPP project requires; (1) political and economic stability, (2)

sound legal framework, (3) institutional capacity, (4) political commitment and support, (5)

transparent and competitive tender procedures free from corruption, (6) an organized and

developed domestic private entrepreneurship (including financial institutions and construction

companies), and (7) public acceptance and support. Unfortunately, the OIC countries generally

fail to achieve most of these preconditions.

Distribution of PPI Projects by sector and region

In this section, a brief analysis on the historical PPP trends and what OIC countries have been

doing about transportation PPPs/PPIs will provided.

The World Bank PPI database, which covers 139 low and middle-income countries, provides the

most comprehensive data on PPI projects and classifies them into 4 main sectors; (1) energy,

(2) telecom, (3) transport, and (4) water and sewerage. Table 15 shows that, financial closure of

a total of 9,218 PPI projects has been finalized in the world between 1991 and 2017. Energy

First transport PPI

project in the OIC

region and the OIC-Asia

(Indonesia)

First transport PPI

project in the OIC-

Sub-Saharan Africa

(Mozambique)

First transport PPI

project in the OIC-

MENA

(Turkey)

Second OIC-Asia

country

implementing a

transport PPI project

(Malaysia)

Second OIC-Sub-

Saharan Africa country

implementing a

transport PPI project

(Cameroon)

Second OIC-MENA

country

implementing a

transport PPI project

(Yemen)

1990 1991 1992 1993 1994 1995 1996 1997 1998