IntroductionoftheWorldBankandLiberiaPortProjectExample
C Bert KrukC.BertKrukPortConsultantWorldBank2013
WhoamI?
1971:MScCivilEngineeringDelftUniversityofTechnologygy
19721975:CoastalEngineerEgypte (UNESCO) 19751981:SeniorLecturerPortandMerchantShipping
atIHEDelft 19812002:DirectorPortofRotterdamInternational
(thencalledTEMPO) 2003 CEO f th P t f S h i O 2003:CEOofthePortofSohar inOman 20042008:LeadPortSpecialistoftheWorldBank,
WashingtonDC 2008present:PortConsultantWorldBank
Countriesofengagement
WhatisthebusinessoftheWorldBankGroup?
InFinancialYear2012atotalamountofUS$52.6billionwasmadeavailabletorequestingcountriesfor DevelopmentLoansandCredits Guarantees Other Financial products
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OtherFinancialproducts
WorldBankGroupcomponents
International Bankfor Reconstruction
InternationalDevelopment
InternationalFinance
MutilateralInvestment
International Centerfor the Settlement of
World Bank Group
for Reconstructionand Development
DevelopmentAssociation
FinanceCorporation
InvestmentGuarantee Agency
for the Settlement ofInvestment Disputes
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1945 198819561960 1966
Wheredothefundscomefrom?
IBRD Borrows money on the capital market against terms Borrowsmoneyonthecapitalmarketagainstterms
(tariffs)whicharelowerthancommercialtariffsIDA Donorcontributions(developmentaid),theprofitof
IBRDprojectsandrepaymentsofcredits Nointerest 45 years repayment period
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45yearsrepaymentperiod MajorCriterion:US$1,175GNIperheadofthe
population 73countriesmatchthiscriterion(!)
WhereistheWorldBankactivetoday?
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IDAandIBRDLoansandCreditsinFY2012(US$35.3billiontotal)
SA18%
AFR21%
EAP19%
ECA19%
MENA4%
LAC19%
StructureoftheWorldBank 186 countriesBoard of Governors
25Directors
PresidentOffice of the President
Executive Directors
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DutchDirectorrepresents14countries(mainlyCentralandEasternEuropeandIsrael)
VotingPowersofExecutiveDirectorsforIBRDWorld Bank Shareholders
United States16%16%
Japan8%
Germany4%
United Kingdom
Rest of the World55% France
4%
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Russian Federation
3%
Saudi Arabia3%
China3%
4%
TheWorldBankGroup
Thetotalnumberofstaffisapproximately10,000(7,000intheHeadOfficeinWashingtonDCand3,000
h l l ff )intheapproximately100RegionalOffices)
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Thetwopillarstocombatpoverty Creationofagoodenvironmentforinvestments,
employmentandsustainablegrowtho Stable macro economic conditionso Stablemacroeconomicconditionso Goodgovernanceandinstitutionso Physicalandfinancialinfrastructure
Investmentinpoorpeopleandprovidingthemwiththemeanstoparticipateindevelopmento Humandevelopment
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o Accessto informationo Responsibilityo Local organisation capacityo Women empowerment
PrimeproductsoftheWorldBank Financialinstruments
o Loansandcreditsforinvestmentso Loans and credits for development policyo Loansandcreditsfordevelopmentpolicyo Subsidieso Guarantees
Otherinstrumentso Analyticalwork
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o Dialogueo Advise
BusinessStrategyAtCountrylevel CountryAssistanceStrategy(CAS)tailoredtothenational
needsneeds Validforaperiodof3to4years TheCountryistheowneroftheprocess
9 PovertyReductionStrategyDocuments9 ExtensiveDevelopmentProgram
AtGloballevel Sector Strategy Documents
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SectorStrategyDocuments Examples:Howdowereachtheruralpoorest? WaterStrategy,EnergyStrategy,TransportStrategy,etc.
TransportStrategy AirTransport RoadTransport Trade Logistics TradeLogistics UrbanTransport PortsandMaritimeTransport
o MajorPublications PortReformToolkit SupplySecurityGuide
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ISPSReview
Borrower Proposals
Previously executed Projects CountryNational WB Office
ProjectIdentification
Country Country AssistanceAssistance
Country Country AssistanceAssistance
OtherDonors
Bank Economic& Sector Work
Economic and Sector Work of the WB
CAS
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AssistanceAssistanceStrategyStrategy
AssistanceAssistanceStrategyStrategy
Country Assistance Strategy
Execution Evaluation Report
Project Identification
Execution of the Project
Project Preparation
Project Assessment
Project Supervision
oject ssess e t
Loan Negotiations
Approval, Signature and Availability of the
Loan
Joint activity Client activityWB activity
World BankLoan Agreement
Borrower
Prequalification
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SupplierContractorConsultant
qBid DocumentsBid EvaluationContract
ImportantWorldBankPortandLogisticsPresentations
PortReformToolkitSecondEdition2007(rru worldbank org/Documents/Toolkits/ports fulltoolkit pdf)(rru.worldbank.org/Documents/Toolkits/ports_fulltoolkit.pdf)
SupplyChainSecurityGuide(web.worldbank.orgTopics Transport)
PortProjectLiberia
LiberiaIntroduction FirstCivilWar(CharlesTaylor)from1989to1997 NoreconstructionresultedinanotherCivilWarfrom2002to
2003 (Taylor was ousted as president)2003(Taylorwasoustedaspresident) Totaldeathtoll:350,000people Aftermorethan10yearsofCivilWarthecountryhadtore
builtcompletely TheWorldBankandmanyinternationaldonorssponsoreda
transportportfolioofmorethanUS$200millionforthetransportsector
Roads ports airports waste management water power etc Roads,ports,airports,wastemanagement,water,power,etc. Mrs.EllenJohnsonSirleaf waselectedasthefirstfemale
AfricanPresidentofAfrica SurfaceofLiberia:ThreetimestheNetherlands Inhabitants:approximately3million
AfewimpressionsofMonrovia
DescriptionoftheLiberiaPortSector AllLiberianportsweremanagedalongtheprinciplesofthe
PublicServicePortManagementmodel Th N i l P A h i (NPA) d S TheNationalPortAuthority(NPA)wasstructuredasaState
OwnedEnterprise(acivilservantorganization)thatmanagedtheportsinitstotalityandalloperationswerecarriedoutbyNPAemployees,includingthemarineservices
Majorironoreminingcompanieshoweverhadtheirowndedicatedcargoloadingfacilitiesintheportarea
These companies made the investments in the facilities and Thesecompaniesmadetheinvestmentsinthefacilitiesandoperatedthemwiththeirownstaffandlabor
TheNPAreceivedapercentageofthethroughputproceeds
DescriptionoftheLiberiaPortSector(contd) AttheendofthecivilunrestthePortofMonroviawasina
verypoorstate notorhardlymaintainedy siltedupand withhardlyanygoodworkingpieceofequipmentbothonwater
andonland Anumberofdonors,suchastheWorldBankandtheEU,
initiatedalargeprojectthataimedatexecutingmajorinfrastructuralrepairs,dredgingandimprovementoftheportoperations
Thefirstactivitieswereanoverallassessmentofthestatusoftheportandtheformulationofrecommendationsforthemosturgentactionsforimprovement
ThePortin20062007
ThePortofMonroviain2005
Components ofthePortProject
FullPortAssesment Listing ofthehighest priorities Balancing the highest priorities against available funds Balancing thehighest priorities against available funds MajorProjects Dredging oftheportbasin and entrance channel (completed and to be
deepened in2013) Attempt to rehabilitate theOilJetty (not successfull therefore decision
to build anewFuel Unloading Facility(to start2013)) Paving of port roads and a container stacking areaPaving ofportroads and acontainerstacking area Concessioning ofthecargohandlingand marineservices(completed
in2011) Constructionby theconcessionaire of600mofquay wall (to be
completed in2013)
ThePortReformProject OneoftheoutcomesoftheAssessmentwasthe
recommendationtochangetheprevailingPublicServicePortManagementmodelintotheLandlordPortManagementg gmodel
Majorinvestmentwererequiredinanewquay,equipmentandotherfacilitiescouldnotbebornebytheGovernment/NPA
ItwasconcludedthataPPPwouldleadtomoreefficientoperations and the advantage that latest technology andoperationsandtheadvantagethatlatesttechnologyandsystemsrequiredwouldbebroughttothecountry
Itwasagreedtooptforalongtermconcessionthatwouldtransferthehandlingoperationsofgeneralandcontainerizedcargoesaswellastheprovisionofmarineservices(pilotageandtowage)fromtheNPAtoaprivatepartner
ThePortReformProject(contd) Theconsequenceofthisdecisionwasthatthestructureofthe
NPAhadtoundergoatransformationaswell NPA l f t d t h d t f ll b k NPAsroleofportmanagerandoperatorhadtofallback
ontothepositionofbeingthePortManager,responsiblefor Portmanagement Portsafety Portenvironmentand Longtermportdevelopment(portmasterplanning)ingoodandclosecooperationwiththeprivatesectorparty/partiesoperatinginthePortofMonrovia
ThePortReformProject(contd)
Movingawayfromdirectexecutionofcargohandlingandmarineoperationswouldofcoursehaveconsequencesinthefi ld f H RfieldofHumanResources
CertainfunctionswouldnolongerbethecorebusinessoftheNPAwhereas,ontheotherhand,theNPAwouldbecomeresponsiblefornewrolesandfunctionswhichmay,inseveralinstances,requirenewskillsandmanpower
ItwasobviousthatthetotalNPAworkforcewouldhavetobereduced
H th t f f t i b f NPA l t HoweverthetransferofcertainnumbersofNPAemployeestotheprivatesectorpartnerwasnotunlikely
DetailsoftheConcessioningProcess(PPPProject)
Contracting(throughcompetitivebidding)ofaTechnicalandaTransactionConsultant
After thepreparationoftheprojecttheTransactionConsultant(supportedbytheTechnicalConsultant)executedthefollowingactivities
DetailsoftheConcessioningProcess(PPPProject)
Activities(total duration2years)
TechnicalAssessment andMarketAnalysis
MarketConsultation
IssueandEvaluateRequestforPrequalification
SelectPrequalifiedCandidates
CompetitiveDialogue
IssueRequestforProposals andNegotiateDraftContracts
EvaluationofProposalsandSelectionofthePreferredCandidate
Contract FinalizationandAward
FinalNegotiationsandClosing
Evaluation/RecommendationsoftheConcessioningProcess(PPPProject)
Timeconsumingandlaborintensiveprocess Government should take ownership Governmentshouldtakeownership MarketTour AutomaticInflationCorrectionofRatesandTariffs Fixed:TariffsforCargoHandling,MarineServicesTariffs,
StorageandLease Only1Financial(Royalty)and1TechnicalBidComponent
(constructionof600mofnewquaywallwithingivenperiod)
h k f iThank you for your attention