The document summarizes a session from the ISMED Annual Conference on making public-private partnerships (PPPs) successful in the Middle East and North Africa region. The session reviewed a draft PPP Handbook providing recommendations for policymakers. Key findings from the Handbook included that capacity building for PPPs, strong legal frameworks, thorough project selection and risk allocation, and reform of energy subsidies are all important for attracting private investment in infrastructure through PPPs in the region. The Handbook is being finalized based on feedback, with training planned to help with implementation.

1. ISMED Annual Conference
Defining a Way Forward for Infrastructure Investment in the Middle East
and North Africa
1
Andrew Fitzpatrick, Programme Coordinator, ISMED Support Programme
Paris, 4 December 2014

2. Session Three:
Making PPPs happen in the MENA region
2
Agenda for the Session:
• Review of the PPP Handbook: Public Private Partnerships in the Middle East and North
Africa: A Handbook for Policy Makers. (Draft)
• Discussion of country-focused work:
• Egypt: Promoting Nile River Transport
• Jordan: Optimising the Incentives Framework for Renewable Power Infrastructure
(DRAFT)
• Morocco: A Benchmark Study on Logistics Zones Development
• ISMED Working Group Task Force on Public-Private Partnerships

3. Session Three:
PPP Handbook: Objectives
3
The PPP Handbook:
• Public Private Partnerships in the Middle East and North Africa: A Handbook for Policy
Makers. (Draft)
• Major ISMED output, region-wide relevancy.
• Intended to be practical and hands-on guide to assist policy makers in moving projects
forward.
• Define and describe barriers and obstacles to successful PPP projects in the MENA region
and provide policy recommendations to address them.
• Not only a policy and framework level, but also at a more transactional, contractual level.
• Focus on Jordan, Egypt, Tunisia and Morocco, Deauville Partnership
countries, and on Transportation/Logistics and Renewable Energy.

4. Session Three:
PPP Handbook: Methodology
4
What did we do to develop the Handbook:
• ISMED country projects have helped to inform the Handbook.
• Broad consultations with IFIs.
• OECD expertise and guidance.
• The Risk Matrix.

5. Session Three:
PPP Handbook: Methodology
5
The Risk Matrix:
• Identified infrastructure projects in each of the four countries in the last decade that
involved private sector participation.
• The main risks and obstacles encountered were identified.
• Seventeen types of risks and barrier identified.
• Grouped into four categories:
• Political risks
• Financial risks
• Legal and institutional risks, and
• Operational risks

6. 6
Political
19%
Financial
19%
Operational
19%
Legal & Institutional
43%
Barriers to PPP investment by frequency of occurrence*
(Egypt, Jordan, Morocco, Tunisia)
* Source: OECD (forthcoming), Public-Private
Partnerships in the Middle East and North
Africa. ISMED Support Programme.
Session Three:
PPP Handbook: Methodology, The Risk Matrix

7. Session Three:
PPP Handbook: Key Findings
Capacity and High-level Political Buy-in
7
Capacity is Key:
• The capacity of governments and government officials is a recurring issue.
• Goes beyond the ability to execute and manage the PPP arrangement.
• All levels must understand what PPPs are, and what they are not.
• Consultations indicate that there has not been a successful PPP project in the region in the
absence of high-level political support.

8. Session Three:
PPP Handbook: Key Findings
Capacity and High-level Political Buy-in
8
Building Capacity:
• This highlights the need for PPP central units.
• Need sufficient resources and be sufficiently empowered to make decisions.
• Satellite PPP units at the line ministry or agency.
• The line ministry or agency must be able to live with and manage the contract for up to 30
years.

9. Session Three:
PPP Handbook: Key Findings
The Importance of Legal Frameworks
9
Legal Frameworks:
• The PPP legal regime is vital.
• Long and complex agreements, can be many years to recoup investment.
• Investors require transparency and predictability.
• Every project should be a component of an overall strategy.
• Intergovernmental coordination, a whole of government approach.

10. Session Three:
PPP Handbook: Key Findings
The Importance of Legal Frameworks
10
Strengthening Legal Frameworks:
• A comprehensive PPP law addressing all aspects of PPP procurement
• Transparent and predictable bidding processes
• Enhance legal security, guarantees against expropriation
• Dispute resolution provisions, both contractual and treaty based.
• Develop overall strategies that include all areas of government.

11. Session Three:
PPP Handbook: Key Findings
Project Selection and De-risking
11
It’s all about preparation:
• Governments may not dedicate sufficient resources to project selection and preparation
• Location choices sometimes made on political basis
• Inappropriate risk allocations

12. Session Three:
PPP Handbook: Key Findings
Project Selection and De-risking
12
Do the Homework:
• Feasibility should be determined before potential investors are involved.
• Location is key in transport concession-based projects
• Take care of what you can.
• Know what risks the private sector can realistically face

13. Session Three:
PPP Handbook: Key Findings
Energy Subsidies
13
Energy Subsidies can Inhibit Transport and Renewable Energy Projects:
• Energy subsidies prevalent in the region distort the economics of both transport and
renewable energy
Integrated Strategies
• Again, this illustrates the importance of integrated whole of government approach
• Certain transport and renewable energy projects may not be feasible in the absence of
subsidy reform.

14. Session Three:
PPP Handbook: Next Steps
14
Finalising and Implementing the Handbook:
• The Handbook is a draft, and we look forward to comments and feedback to help us
improve and finalise
• IMF Centre Kuwait training and Tunisia training

15. Mr Andrew FITZPATRICK
Global Relations Secretariat, OECD
Andrew.Fitzpatrick@oecd.org
www.oecd.org/investment/psd/ismed.htm
With the financial assistance of the European Commission
Key Contacts