IntroductionoftheWorldBankand

LiberiaPortProjectExample
C.BertKruk
C
Bert Kruk
PortConsultant
WorldBank
2013

WhoamI?
1971:MScCivilEngineeringDelftUniversityof
Technology
gy
19721975:CoastalEngineerEgypte (UNESCO)
19751981:SeniorLecturerPortandMerchantShipping
atIHEDelft
19812002:DirectorPortofRotterdamInternational
(thencalledTEMPO)
2003:CEOofthePortofSohar
2003 CEO f th P t f S h inOman
i O
20042008:LeadPortSpecialistoftheWorldBank,
WashingtonDC
2008present:PortConsultantWorldBank

Countriesofengagement

WhatisthebusinessoftheWorldBankGroup?
InFinancialYear2012atotalamountofUS$
52.6billionwasmadeavailabletorequesting
countriesfor
DevelopmentLoansandCredits
Guarantees
OtherFinancialproducts
Other Financial products

5/8/2013

WorldBankGroupcomponents
World Bank Group

International Bank
for Reconstruction
and Development

International
Development
Association

1945

1960

5/8/2013

International
Finance
Corporation

Mutilateral
Investment
Guarantee Agency

1956

1988

International Center
for the Settlement of
Investment Disputes

1966

Wheredothefundscomefrom?
IBRD
Borrowsmoneyonthecapitalmarketagainstterms
Borrows money on the capital market against terms
(tariffs)whicharelowerthancommercialtariffs
IDA
Donorcontributions(developmentaid),theprofitof
IBRDprojectsandrepaymentsofcredits
Nointerest
45yearsrepaymentperiod
45 years repayment period
MajorCriterion:US$1,175GNIperheadofthe
population
73countriesmatchthiscriterion(!)
5/8/2013

WhereistheWorldBankactivetoday?

5/8/2013

IDAandIBRDLoansandCreditsinFY2012
(US$35.3billiontotal)

SA
18%

ECA
19%

EAP
19%

AFR
21%
LAC
19%

MENA
4%

StructureoftheWorldBank
Board of Governors

Executive
Directors

Office of the
President

186 countries

25Directors
President

DutchDirectorrepresents14countries
(mainlyCentralandEasternEuropeand
Israel)

5/8/2013

VotingPowersof
World Bank Shareholders
ExecutiveDirectorsforIBRD
United States
16%
Japan
8%
Germany
4%
France
4%
United Kingdom
4%
China
3%

Rest of the World

55%

Russian
Federation
3%
5/8/2013

10

Saudi Arabia
3%

TheWorldBankGroup
Thetotalnumberofstaffisapproximately10,000
(7,000intheHeadOfficeinWashingtonDCand3,000
intheapproximately100RegionalOffices)
h
l
l ff
)

11

Thetwopillarstocombatpoverty
Creationofagoodenvironmentforinvestments,
employmentandsustainablegrowth
o Stablemacroeconomicconditions
Stable macro economic conditions
o Goodgovernanceandinstitutions
o Physicalandfinancialinfrastructure

Investmentinpoorpeopleandprovidingthem
withthemeanstoparticipateindevelopment
o
o
o
o
o

Humandevelopment
Accessto information
Responsibility
Local organisation capacity
Women empowerment
12

PrimeproductsoftheWorldBank
Financialinstruments
o
o
o
o

Loansandcreditsforinvestments
Loans and credits for development policy
Loansandcreditsfordevelopmentpolicy
Subsidies
Guarantees

Otherinstruments
o
o
o

Analyticalwork
Dialogue
Advise

13

BusinessStrategy
AtCountrylevel
CountryAssistanceStrategy(CAS)tailoredtothenational
needs
needs

Validforaperiodof3to4years
TheCountryistheowneroftheprocess
9 PovertyReductionStrategyDocuments
9 ExtensiveDevelopmentProgram

AtGloballevel
SectorStrategyDocuments
Sector Strategy Documents

Examples:Howdowereachtheruralpoorest?
WaterStrategy,EnergyStrategy,TransportStrategy,etc.

14

TransportStrategy

AirTransport
RoadTransport
Trade Logistics
TradeLogistics
UrbanTransport
PortsandMaritimeTransport
o

MajorPublications

PortReformToolkit
SupplySecurityGuide
ISPSReview

15

ProjectIdentification
Previously executed Projects
Borrower
Proposals

Country
National WB
Office

Economic and
Bank Economic
Sector Work of
& Sector Work
the WB

Other
Donors

Country
Assistance
Strategy

CAS

16

Country Assistance Strategy

Execution Evaluation
Report

Project Identification

Project Supervision
Project Preparation
Execution of the
Project

Project
oject Assessment
ssess e t

Approval, Signature
and Availability of the
Loan

Joint activity

Loan Negotiations

WB activity

Client activity

World Bank
Loan Agreement

Borrower

Supplier
Contractor
Consultant

Prequalification
q
Bid Documents
Bid Evaluation
Contract
18

ImportantWorldBankPortandLogistics
Presentations
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$200millionforthe
transportsector
Roads,ports,airports,wastemanagement,water,power,etc.
Roads ports airports waste management water power etc
Mrs.EllenJohnsonSirleaf waselectedasthefirstfemale
AfricanPresidentofAfrica
SurfaceofLiberia:ThreetimestheNetherlands
Inhabitants:approximately3million

AfewimpressionsofMonrovia

DescriptionoftheLiberiaPortSector
AllLiberianportsweremanagedalongtheprinciplesofthe
PublicServicePortManagementmodel
TheNationalPortAuthority(NPA)wasstructuredasaState
Th N i
l P A h i (NPA)
d
S
OwnedEnterprise(acivilservantorganization)thatmanaged
theportsinitstotalityandalloperationswerecarriedoutby
NPAemployees,includingthemarineservices
Majorironoreminingcompanieshoweverhadtheirown
dedicatedcargoloadingfacilitiesintheportarea
Thesecompaniesmadetheinvestmentsinthefacilitiesand
These companies made the investments in the facilities and
operatedthemwiththeirownstaffandlabor
TheNPAreceivedapercentageofthethroughputproceeds

DescriptionoftheLiberiaPortSector(contd)
AttheendofthecivilunrestthePortofMonroviawasina
verypoorstate
notorhardlymaintained
y
siltedupand
withhardlyanygoodworkingpieceofequipmentbothonwater
andonland

Anumberofdonors,suchastheWorldBankandtheEU,
initiatedalargeprojectthataimedatexecutingmajor
infrastructuralrepairs,dredgingandimprovementofthe
portoperations
Thefirstactivitieswereanoverallassessmentofthestatus
oftheportandtheformulationofrecommendationsfor
themosturgentactionsforimprovement

ThePortin20062007

ThePortofMonroviain2005

Components ofthePortProject

FullPortAssesment
Listing ofthehighest priorities
Balancing thehighest
the highest priorities against available funds
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 ofportroads
of port roads and acontainerstacking
a container stacking area
Concessioning ofthecargohandlingand marineservices(completed
in2011)
Constructionby theconcessionaire of600mofquay wall (to be
completed in2013)

ThePortReformProject
OneoftheoutcomesoftheAssessmentwasthe
recommendationtochangetheprevailingPublicServicePort
ManagementmodelintotheLandlordPortManagement
g
g
model
Majorinvestmentwererequiredinanewquay,equipment
andotherfacilitiescouldnotbebornebytheGovernment/
NPA
ItwasconcludedthataPPPwouldleadtomoreefficient
operations and the advantage that latest technology and
operationsandtheadvantagethatlatesttechnologyand
systemsrequiredwouldbebroughttothecountry
Itwasagreedtooptforalongtermconcessionthatwould
transferthehandlingoperationsofgeneralandcontainerized
cargoesaswellastheprovisionofmarineservices(pilotage
andtowage)fromtheNPAtoaprivatepartner

ThePortReformProject(contd)
Theconsequenceofthisdecisionwasthatthestructureofthe
NPAhadtoundergoatransformationaswell
NPAsroleofportmanagerandoperatorhadtofallback
NPA l f
t
d
t h d t f ll b k
ontothepositionofbeingthePortManager,responsiblefor

Portmanagement
Portsafety
Portenvironmentand
Longtermportdevelopment(portmasterplanning)

ingoodandclosecooperationwiththeprivatesector
party/partiesoperatinginthePortofMonrovia

ThePortReformProject(contd)
Movingawayfromdirectexecutionofcargohandlingand
marineoperationswouldofcoursehaveconsequencesinthe
fi ld f H
fieldofHumanResources
R
Certainfunctionswouldnolongerbethecorebusinessofthe
NPAwhereas,ontheotherhand,theNPAwouldbecome
responsiblefornewrolesandfunctionswhichmay,inseveral
instances,requirenewskillsandmanpower
ItwasobviousthatthetotalNPAworkforcewouldhavetobe
reduced
HoweverthetransferofcertainnumbersofNPAemployeesto
H
th t
f
f
t i
b
f NPA
l
t
theprivatesectorpartnerwasnotunlikely

DetailsoftheConcessioningProcess(PPPProject)
Contracting(throughcompetitivebidding)ofaTechnicalanda
TransactionConsultant
After thepreparationoftheprojecttheTransaction
Consultant(supportedbytheTechnicalConsultant)executed
thefollowingactivities

DetailsoftheConcessioningProcess(PPPProject)
Activities(total duration2years)
TechnicalAssessment andMarketAnalysis
MarketConsultation
IssueandEvaluateRequestforPrequalification
SelectPrequalifiedCandidates
CompetitiveDialogue
IssueRequestforProposals andNegotiateDraftContracts
EvaluationofProposalsandSelectionofthePreferredCandidate
Contract FinalizationandAward
FinalNegotiationsandClosing

Evaluation/RecommendationsoftheConcessioning
Process(PPPProject)

Timeconsumingandlaborintensiveprocess
Government should take ownership
Governmentshouldtakeownership
MarketTour
AutomaticInflationCorrectionofRatesandTariffs
Fixed:TariffsforCargoHandling,MarineServicesTariffs,
StorageandLease
Only1Financial(Royalty)and1TechnicalBidComponent
(constructionof600mofnewquaywallwithingivenperiod)

Thank
h k you for
f your attention
i