COMCEC Transport and Communications
Outlook 2017
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 7,389 PPI projects has been finalized in the world between 1991 and 2016. 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