Announcement of IDA Approves Eleven Million Dollars for Expansion of Cotonou Port in Benin on June 12, 1978

•World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/89 JUNE 12, 1978 IDA APPROVES $11 MILLION FOR EXPANSION OF COTONOU PORT IN BENIN The International Development Association (IDA), the World Bank's affiliate for concessional lending to the poorest among the developing countries, is extending an $11 mill ion credit for a Cotonou port project in the Peoples' Republic of Benin. The $46 million project's objectives are: to increase the capacity of the port to handle at least 1. l million tons of general and break-bulk cargo a year; to improve the efficiency of Port Autonome de Cotonou (PAC) and Office Beninois des Manutentions Portuaires (OBEMAP) through training programs and technical assistance, and to insure that Benin derives the maximum benefit from the use of the Port • of Cotonou for the transit of goods destine~ to neighboring countries by introducing an adequate tariff structure, in particular on the Benin Route. The project wil 1, in addition, improve the operations of Organisation Commune Benin-Niger des Chemins de Fer et des Transports' (OCBN) central line from Cotonou to Parakou through technical assistance and training, and help in the study of the downrift erosion problems to permit the Government to plan shore protection works. The project will develop the transit traffic which constitutes one of Benin's most important economic activities by removing a major bottleneck in the Cotonou-Niger and Cotonou-Nigeria transport axes, thus benefitting not only Benin but also Niger and Nigeria. Co-financing is an important feature of this project. The co- financing includes: $2.62 million from the Abu Dhabi Fund for Arab Economic Development; $4.6 million from the Arab Bank for Economic Development in Africa (BADEA); $3.12 million from France's Caisse Centrale de Cooperation Economique (CCCE); $10 million from the Canadian International Development Agency (CIDA); $1.5 million from France'~ Fonds d'Aide et de Cooperation (FAC); $2.94 million from the African Development Bank (AfDB) as agent of the Nigerian Trust Fund (NTF); and finally $8.3 mill ion from the Kingdom of Norway. The $11 million IDA credit to the Peoples' Democratic Republic • ot Benin wi 11 be for 50 years, including 10 years of grace. It wi 11 be interest free but wi 11 carry a service charge of 3/4 of 1% per annum to cover IDA's administrative expenses. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T ECHN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Cotonou Port Peoples' Republic of Benin $46.09 million • I DA FINANCING: $11 million (standard IDA terms) OTHER FINANCING: Abu Dhabi Fund for Arab Economic Development (ADF), $2.62 million Arab Bank for Economic Development in Africa (BADEA), $4.6 mi 11 ion Caisse Centrale de Cooperation Economique (CCCE), $3. 12 million Canadian International Dev01opment Agency (CIDA), $10 million Fonds d'Aide et de Cooperation (FAC), $1.5 million African Development Bank (AfDB) agent of Nigerian Trust Fund (NTF), $2.94 million Kingdom of Norway, $8.3 million IMPLEMENTING ORGANIZATION: Ministere des Transports et Travaux Publiques PROJECT DESCRIPTION: Cotonou, Benin The project wi 11 expand the physical capacity of the port fro. 720,000 tons per year to about 1,100,000 tons; increase produc- tivity by improving port and cargo handling operations and training, and assist the Govern- ment in introducing an adequate tariff structure for the transit of goods. PROCU.REMENT: International competitive bidding in accordance with World Bank guidelines has already taken place for civil works. Lot 2 (dredging and filling) is intended to be procured by CIDA using only Canadian contractors and under CIDA's own procurement procedures. Tenders for Lot 5 (two transit sheets), financed by CCCE, are open only to French contractors. CONSULTANTS: Four experts (60 man-months) will work in ?art Autonome de Cotonou (PAC); three (60 man-months) in Office Beninois des Manutentions Portuaires (OBEMAP), two (22 man-months) in Organisation Commune Benin-Niger des Chemins de Fer et des Transports' (OCBN) to advise these institutions on their opera- tions, re-organize their accounting system and prepare new tariff structures. In addition, an engineering firm will work in PAC to study the need for a roll-on/roll-off facility for the port; there will be a study of coastal protection to determine future action needed and estimate the costs of civil works proposed. ECONOMIC RATE OF RETURN 25% for Benin; 37% overall for region (including Niger and Nigeria) ESTIMATED COMPLETION DATE: 1980 - 0 - •