139. MENA-region economies have been characterised by high levels of state control, centralisation and planning. State entities or state owned entities may be involved in many sectors of the economy with existing transportation and logistics services being provided in this manner. Incumbent operators regardless of their ownership that see a PPP as potential competition may take steps to try to delay or block the project. This is particularly problematic where incumbent operators are state or state-owned entities and well-placed to exert influence.
140. If the cooperation of a state or state owned entity is required for a new PPP to be successful, then incentives must be aligned. For instance, increased costs incurred by an incumbent state-owned operator that is required either practically or legally to use the services of a new PPP will create resistance. This is why a whole of government integrated transportation and logistics strategy as discussed below is important.