| Transportation and logistics rank high on the development agenda of most MENA governments, as a catalyst for growth and socioeconomic integration. This chapter focuses on PPP projects in the transportation and logistics sectors throughout the MENA region, with particular emphasis on Egypt, Jordan, Morocco and Tunisia. Key barriers are identified and potential policy responses to these barriers proposed. A number of barriers are common with other sectors, while others are more specific to transport. Findings include: • Type of project: Certain characteristics may increase the probability that a transportation infrastructure project will be successful. These include standardised construction requirements and services and a small number of sophisticated users. • Traffic risk is vital: Investors are reluctant to face traffic/demand risk. This is true not only in MENA but in OECD countries as well. Governments can address this issue by compensating developers on the basis of the availability of infrastructure or can devise mechanisms to share traffic risk. • Fuel Subsidies: Transport PPPs may be susceptible to distortions caused by fuel subsidies. Reforms to these subsidies may be necessary for successful transport PPPs. • Location: Location is vital in a transport PPP project, especially if concession-based. Location should be based purely on traffic/volume flows and not political considerations. After reviewing this chapter policy makers will: • Have a better understanding of the type of transportation PPP projects that are more likely to be successful. • Have a better understanding of the vital issue of traffic/demand risk and how this could be addressed. • Have a better understanding of how energy policies may impact PPPs. |