Mozambique - Maputo Corridor Revitalization

 ICRR 10518 Report Number : ICRR10518 ICR Review Operations Evaluation Department 1. Project Data : OEDID : OEDID: C2454 Project ID : P001802 Project Name : Maputo Corridor Revitalization Country : Mozambique Sector : Other Transportation L/C Number : C2454-MOZ Partners involved : Prepared by : Binyam Reja Reviewed by : Helen Abadzi Group Manager : Greg Ingram Date Posted : 08/19/1999 2. Project Objectives, Financing, Costs and Components : The project, supported by a credit of US$ 9.3 million equivalent, was approved on January 19, 1993, and made effective on September 27, 1993. The credit was closed on December 31, 1998 one year later than the original closing date. SDR 2.5 million was canceled. Objectives : The main project objective was to assist the government of Mozambique (GOM) in identifying and implementing strategies that would lead to the long -term viability of the Maputo port-railway system. To achieve this objective, the project comprised (i) government's divestiture of direct involvement in the management and operation of transport facilities in the corridor and establishment of an appropriate regulatory framework to regulate the divestiture; and (ii) staff rationalization comprising retrenchment of staff considered surplus and labor redeployment measures to adequately cushion them against the impact of loss of employment . Project Costs : Appraisal: US$10.5 million. Actual: US$5.9 Bank Financing : Appraisal: US$9.3 million. Actual US$5.8. 3. Achievement of Relevant Objectives : The project achieved its objective to divest government's direct involvement in the management and operation of transport facilities in the Corridor . The project resulted in the concessioning of three port terminal, the creation of a joint venture with a private partner to manage the container terminal; and a Memorandum of Understanding for the master concessions of the Port of Maputo and the rail network package . The objective of staff rationalization was partially achieved. A comprehensive staff rationalization program for the redundant work force was prepared and communicated to the Bank. The Plan is scheduled to be implemented under the proposed Railways and Ports Restructuring Project. 4. Significant Achievements : The development of consensus and commitment to concession the Maputo port and railway facilities . 5. Significant Shortcomings : The project suffered from delays during the early stages of implementation, poor response from potential bidders and lengthy negotiations. 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Substantial Substantial Sustainability : Likely Likely Bank Performance : Satisfactory Satisfactory  Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : The ICR identifies the following lessons : (i) developing genuine ownership of a dramatic shift in business and political strategy, as in the privatization program in this case, is a complex process; (ii) committees comprising officials without adequate authority are not helpful in advancing a process as complex as one involving concessioning (iii) when undertaking a complex concessioning or privatization of a complex railway and /or port system, it would be better to commence the concessioning process with one or two key components of the system and to use the lessons to improve the process for the rest of the system . 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : The ICR is of satisfactory quality . It provides a thorough assessment of project implementation experience and results, and identifies useful lessons .