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)

11

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