Cameroon - Third Douala Port Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 3803-CM STAFF APPRAISAL REPORT CAMEROON THIRD DOUALA PORT PROJECT March 10, 1983 West Africa Projects Department Transportation Division This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit = CFA franc (CFAF) US$1 = CFAF 340 CFAF 1 million = US$2,941 FISCAL YEAR July 1 - June 30 SYSTEM OF WEIGHTS AND MEASURES: METRIC Metric US Equivalent 1 meter (m) = 3.28 feet (ft.) 1 square meter (m2) = 10.76 square feet (sq.ft.) 1 cubic meter (m3) = 35.30 cubic feet (cu.ft.) 1 kilometer (km) = 0.62 mile (mi.) 1 square kilometer (km2) = 0.39 square mile (sq.mi.) I hectare (ha) = 2.47 acres 1 metric ton (t) = 2,205 pounds (lb.) ABBREVIATIONS AND ACRONYMS BCEOM - French Consultants (Bureau Central d'Etudes pour l'Equipement d'Outre-Mer) CAMAIR - Cameroon Airlines CAMSHIP - Cameroon Shipping Lines SA CAR - Central African Republic CCCE - French Economic Cooperation Agency (Caisse Centrale de Cooperation Economique) CCM - Cameroonian Procurement Agency (Commission Centrale des Marches) CIDA - Canadian International Development Agency CY - Calendar Year DCM - Direction Centrale des Marches dwt - Dead Weight Ton EDP - Electronic Data Processing ERR - Economic Rate of Return FY - Fiscal Year FYB - First Year Benefit GDP - Gross Domestic Product LLWL - Lowest Low Water Level MINE - Ministry of Equipment MINEP - Ministry of Economic Affairs and Planning MOT - Ministry of Transport NPA - National Port Authority (Office National des Ports du Cameroon) OCB - Cameroon Banana Organization (Organisation Camerounaise de la Banane) PORTSIM - Bank's Port Simulation Model REGIFERCAM - National Railroad Company of Cameroon (Regie Nationale des Chemin de Fer du Cameroon) ro/ro - Roll-on/roll-off FOR OFFICIAL USE ONLY CAMEROON APPRAISAL THIRD DOUALA PORT PROJECT Table of Contents Page No. I. INTRODUCTION............................................... 1 II. THE TRANSPORT SECTOR....................................... 2 A. General................................................ 2 B. The Transport Network.................................. 3 C. Transport Policy ....................................... 4 III. THE PORT SUB-SECTOR........................................ 4 A. Port Organization...................................... 4 B. Staffing and Training.................................. 6 C. Port Management and Information System................. 7 IV. THE PORT OF DOUALA......................................... 10 A. Port Facilities and Operations......................... 10 B. Traffic - Past and Present............................. 11 V. INVESTMENT PLAN AND THE PROJECT............................ 13 A. NPA's Investment Plan.................................. 13 B. Objectives of the Project.............................. 14 C. Project Description.................................... 15 D. Cost Estimates......................................... 16 E. Project Financing...................................... 18 F. Project Implementation................................. 18 G. Procurement and Disbursement........................... 18 H. Environmental Impact................................... 20 VI. ECONOMIC EVALUATION........................................ 21 A. Traffic Analysis and Projections....................... 21 B. Project Benefits....................................... 23 C. Economic Return and Sensitivity Analysis............... 25 VII. FINANCIAL EVALUATION....................................... 26 A. Past and Present Situation............................. 26 B. Future Situation....................................... 30 VIII. AGREEMENTS AND RECOMMENDATIONS............................. 34 This report was prepared by Messrs. A. Covindassamy (Financial Analyst), H. Hansen (Economist) and E. Vernigora (Engineer) on the basis of an appraisal mission in March/April 1981 and a brief post-appraisal mission in May 1982. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Table of Contents (con't.) ANNEXES 1. Past Bank Group Activities in the Transport Sector 2. The Transport System 3. Existing Port Facilities and Operations at Douala 4. Supporting Tables T-4.1 Douala Port - Total Import and Export Traffic, CY1969-1980 T-5.1 NPA Five-Year Investment Plan, FY1982-1986 T-5.2 Project Cost Summary T-6.1 Douala Port - Traffic Forecasts, CY1981-1990 T-6.2 Cost and Benefit Streams for Container and Multi-Purpose Berths, CY1983-2004 T-6.3 ERR Under Different Assumptions T-7.1 NPA Consolidated Balance Sheets, FY1975-1982 T-7.2 Douala Port Balance Sheets, FY1975-1982 T-7.3 NPA Consolidated Sources and Applications of Funds, FY1976-1982 T-7.4 Douala Port Sources and Applications of Funds, FY1975-1982 T-7.5 NPA Consolidated Income Statements, FY1975-1982 T-7.6 Douala Port Income Statements, FY1975-1982 T-7.7 NPA Projected Sources and Applications of Funds, FY1981-1991 T-7.8 NPA Projected Income Statements, FY1981-1991 T-7.9 NPA Projected Balance Sheets, FY1981-1991 T-7.10 Traffic Statistics for Douala, 1981-1991 5. Action Plans CHARTS C-1 National Port Authority Organization Chart C-2 Project Execution Timetable MAPS IBRD 15995 Third Douala Port Project: Project Location IBRD 15996R1 Third Douala Port Project: Downstream Port Extension IBRD 16193 Third Douala Port Project: Upstream Port CAMEROON APPRAISAL THIRD DOUALA PORT PROJECT I. INTRODUCTION 1.01 The proposed project would be the Bank Group's third port proj- ect aimed at:(a) increasing capacity in line with traffic growth; (b) modernizing facilities; and (c) improving operations and management at the Port of Douala, the principal port in Cameroon. The basic objec- tive of the First Douala Port Project (Credit 229-CM),l/ approved in January 1971, was to increase Douala's handling capacity for industrial raw materials and logs through the construction of a new deep-water berth for clinker and other industrial imports; the provision of a shallow draft quay, related facilities and services for log handling; the acqui- sition of a small cutter suction dredger and the provision of consultancy and advisory services. The physical works were completed satisfactorily in November 1974. 1.02 The Second Douala Port Project (Loan 1321/Credit 657-CM), approved in August 1976, was based on port master plan studies prepared by consultants. The basic objective of the Second Port Project was to provide a quantum jump in port capacity and technology by: (a) the addi- tion of specialized port facilities for log handling, container and roll- on/roll-off (ro/ro) vessels and fishing vessels*with related dockyard and workshops; (b) deepening of the access channel to permit larger vessels to enter; (c) the improvement of road and rail access to and within the Port; and (d) the provision of consultant services. This major multi- faceted project (involving 12 co-financiers) has been successfully completed, except for the channel deepening which should be completed by September 1983. In both the first and second projects, the Borrower complied reasonably well with credit and loan covenants. However, as the capital dredging has not yet been completed and the new channel established, NPA has not been able to submit the required maintenance dredging program. During loan negotiations, NPA should therefore agree to submit to the Bank by March 31, 1983 such a work program for review. 1.03 The proposed project would continue the Bank Group's assistance to the Port of Douala. More specifically, the proposed project would 1/ Annex 1 provides a brief description of past Bank Group lending for transportation projects in Cameroon, including major comments from Project Performance Audit Reports. - 2 - provide one new container berth and two new multi-purpose berths with related storage and equipment for loading of fruit and handling of other cargo and replacement of an old inefficient tugboat, equipment and studies related to port sector, navigation and dredging as well as hardware and software for data processing and technical assistance to meet remaining institutional weaknesses. It would focus on the main inadequacies in port infrastructure and equipment and the main weaknesses in port organization and management to enable the Port of Douala to meet increasing traffic requirements from expected rapid economic development of the Cameroon during the 1980s while also serving the landlocked least developed countries of Chad and CAR. The outstanding inadequacies in port infrastructure and equipment are two-fold: (a) the poor facility for handling fruit exports at the old existing berth does not provide any back-up area for efficient handling and discharging of rail wagons and trucks or for the temporary storage of the fruit, and the location of the berth next to the clinker berth also results in unhealthy working condi- tions for the stevedores and damage to the fruit and reefer vesselsl from clinker dust; and (b) the inadequate capacities of the existing tugs, and navigation and channel water depths to handle effectively the existing traffic requirements and particularly the relatively larger vessels. With rapidly increasing traffic volumes, the Port will also be facing a growing capacity constraint for general cargo traffic, including containerized traffic; the project therefore includes a port sector study. The foremost remaining organizational and management weaknesses concern personnel administration and data processing. II. THE TRANSPORT SECTOR A. General 2.01 Cameroon, with a population of about 8.4 million, an area of about 475,000 km2 and per capita GNP of about $670 (1980), is one of the more dynamic and wealthier countries in West Africa, with substantial potential for further economic growth. The GDP growth rate increased from about 4.2% p.a., during the Second Plan period (FY1966-1971) to 4.5% p.a., during the Third Plan period (FY1972-1976), to an estimated 8.1% p.a., during the Fourth (FY1977-1981). Rapid expansion in agriculture, manufacturing and mining, including promising recent gas and petroleum discoveries and increasing crude oil exports, supported by increased consumption and investments, contributed substantially to economic growth. 2.02 During the Second and Third Plan periods the Government gave high priority to the transport sector to provide a basic infrastructure for the economy, to interconnect regions, to open up new areas and to provide the necessary infrastructure for foreign trade. This interval was followed by a gradual shift in emphasis towards the productive 1/Specialized vessels equipped to handle cargo under temperature controlled conditions. - 3 - sectors (agriculture, manufacturing and mining) and social sectors, with a reduction in the relative share of transport sector investments. The share of transport investments envisaged in the Government's investment plan thus fell from a high 37% realized in the Third Plan period, FY1972- 1976 to 27% for the Fourth Plan period, FY1977-1981 and a planned 21% for the Fifth Plan period, FY1982-1986. 2.03 With continuing Government priority being given to agriculture (both for exports and domestic consumption), expected substantial increases in oil and gas production, and with vast and still largely unexploited natural resources (particularly agricultural, forestry, hydroelectric and mineral resources) the outlook for continued economic growth appears favorable. Economic growth, including expansion in agri- culture, forestry and mining with related increase in foreign trade will, however, be dependent, inter alia, on the maintenance, improvement and expansion of the transport system, including the Port of Douala. B. The Transport Network 2.04 The transport infrastructure consists of about 65,000 km of highways or about 0.14 km per km2 (of which about half comprises unclas- sified earth roads and tracks); 1,153 km of railways; one principal port at Douala and four minor ports; a main international airport at Douala, with a second one at Garoua, together with a dozen smaller domestic air- ports. Chapter III comments more fully on the port sub-sector while Annex 2 describes briefly the transport infrastructure, including minor ports. 2.05 Cameroon's transport system is export/import-oriented and focuses on Douala, the main port (handling about 93% of the country's important foreign trade) and commercial center (see Maps 15995 and 15996R1). To a large extent, exports and imports through Douala are shipped via the Douala-Bafoussam corridor and the road/rail Trans- Cameroon route to Yaounde, Northern Cameroon and the Chad border. Chad to the northeast relies on the Cameroon transport network and the Port of Douala for its principal access to the sea and the international markets, while CAR to the east is finding it increasingly attractive to transport high-value/low-volume goods via the shorter and faster Cameroonian transport links, rather than through the trans-equatorial route. Two important transportation projects, the upgrading of the Douala-Yaounde Road and the proposed realignment of the remaining sections (Edea-Eseka- Mbalmayo) of the Trans-Cameroon railway line of REGIFERCAM should further strengthen the focal point of Douala and facilitate the inland transport links of the Port. The upgrading of the Douala-Yaounde Road will be financed in part under the Fifth Highway Project, approved in June 1982. 2.06 The Port of Douala will continue to be the main port of Cameroon. Studies have recently been completed regarding future port expansions at Douala once the remaining unused shore area in the Port has been developed (para. 5.09). Studies are being carried out for a possible new port in the south (near Kribi) with related inland transport infrastructure aimed at opening up the southern part of the country to permit exploitation of the region's natural resources, particularly its forests. The potential scope and timing of such a project are not yet clear. There appears now to be a need for an overall review of the port sector, including existing studies, to define an overall port development strategy. Such a study will be carried out under the project. C. Transport Policy 2.07 In view of the Government's limited transport planning and management capabilities, there have in the past been problems in designing and executing projects. The Government recognizes this problem and is, in consultation with the Bank, taking steps to improve the situ- ation as indicated below. 2.08 The Bank has in recent years assisted the Government in strengthening the major transport agencies and in developing a systematic and sound approach to transport planning and project preparation and design. This process included, inter alia, technical assistance to the Ministry of Economic Affairs and Planning (MINEP), the Ministry of Trans- port (MOT), the Ministry of Equipment (MINE) and the National Railroad Company of Cameroon (REGIFERCAM). In conjunction with the Fifth Highway Project, the Bank is continuing to assist MOT in transport planning and MINE for road maintenance, road design and laboratory work. 2.09 The Bank's sectoral objectives continue to be threefold: (a) to strengthen management and improve operations in the transport sub- sectors; (b) to provide additional capacity to meet increasing traffic requirements; and (c) to develop the Government's transport planning capacity as provided in the Fifth Highway Project. The proposed Third Port Project focuses on (a) and (b) for the port sub-sector. The Staff Appraisal Report for the Fifth Highway Project (Report 3473-CM) describes in more detail the transport network, priorities, planning and policy in the Cameroon. III. THE PORT SUB-SECTOR A. Port Organization 3.01 The National Port Authority (NPA - Chart 1) was established in 1972 in connection with the Bank's First Port Project. It is a finan- cially and operationally autonomous public corporation for administra- tion, maintenance and construction of all coastal and river ports, for the maintenance of navigational aids and for the management of industrial port activities. In addition to Douala, which is by far the most impor- tant port, it has the responsibility of three smaller coastal ports, Kribi, Tiko and Victoria-Pointe Limboh, and a small seasonal river port at Garoua. NPA's Articles of Agreement, established by law in June 1971 and modified by decrees in April and July 1972, are geared to give NPA reasonable operational and financial autonomy, situating it under the - 5 - tutelage of the MOT. The Government is responsible for approving tariff changes and for covering NPA's losses, if any. NPA's management and administration have improved substantially since the establishment of the Port Authority, and are generally sound. 3.02 NPA's Board of Directors consists of twelve members representing MINEP (2), the Ministry of Finances (1), MOT (1), the Ministry of Labor and Social Affairs (1), the Director General of REGIFERCAM (1), the mari- time professions (2), the Chamber of Commerce (1), plus two members and the President of the Board appointed by the Presidency of the Republic. A representative of the union attends the meetings of the Board as an observer. The President of the Board, the Director General of NPA and the two Deputies to the Director General are appointed by presidential decree. Past Trend and Present Organization 3.03 Changes in NPA's operational structure since 1972 have been directed toward increased decentralization of responsibilities and toward the adaptation of NPA to meet the changes in its environment. The initial changes in 1976 involved reinforcing the Directorate of Technical Studies with technical assistance as needed, to facilitate implementation of the large extension to the Douala Port under the Second Port Project. From 1979 forward, with the near completion of the extension project, the emphasis shifted to management, operations, and maintenance of the new port. Recent changes in the organization (FY1979) reflect this new orientation with the creation of a Directorate of Finances, and a manage- ment control unit with technical assistance provided by the French Economic Cooperation Agency (Caisse Centrale de Cooperation Economique - CCCE) under the Second Port Project. These two units report directly to the Director General. For the improvement of port operations, a division of training was created in 1980 with Canadian technical assistance, also provided under the Second Port Project. In order to improve port mainte- nance, the Directorate of Civil Works is at present being reinforced with technical assistance transferred from the Directorate of Studies where it was no longer needed following the completion of the major port expansion under the Second Douala Port Project and the successful strengthening of the Cameroonian staff. Proposals for continuing the reorganization in this sector with clear objectives and an action program for improving productivity and reducing costs are included in the Action Plan for Organizational Development agreed upon during negotiations (Annex 5). Prospective Changes 3.04 Although NPA's organization is adapted to its present needs and is generally adequately manned, some improvements can be made that will help in meeting its future needs. These organizational improvements which effect the Directorate of Civil Works, Access and Movement of Ships, Management of Human Resources, the Directorate of Finance, and the Department of Economic Studies are included in the Action Plan for Organizational Development (Annex 5) agreed with NPA during negotiations. They will be supported by specialized training in the - 6 - sectors to be developed and by special recruitment actions for reinforcing the existing staff. NPA's management is favorable to the proposed structural changes and has agreed to take the necessary steps. 3.05 NPA's past activities include not only the management of ports but also ship repair activities. Recent studies conducted by NPA highlighted inefficiencies in the operation of the marine repair workshop, resulting in financial losses (about CFAF 150 million in FY1981). These poor results are due to NPA's inadequate terms of employment for industrial activities, lack of experience of upper-level management in industry and inadequate investment and training policies. These studies also indicate that marine repair requirements, which involve 25% of NPA's staff, may increase as a result of the extension of the CAMSHIP national fleet, expected development of the fishing fleet, and overall petroleum research activities in Cameroon by private companies, while the port's internal maintenance activities for floating crafts are not expected to increase significantly. 3.06 To stimulate ship repair activities in Cameroon, NPA and the Government are considering creating a separate, semi-public corporation associating public Cameroonian capital (61%) and foreign private capital (39%) to take over the marine repair yard. Definition of the exact organization and technical layout of the new firm is underway. Benefits expected from the proposed corporation are: (a) a more market-oriented commercial policy; (b) better management; (c) in a first stage, foreign technical assistance; and (d) enhancement of the quality of repair services offered to port users. The proposed separation appears to be based on sound principles. However, the separation will only be in the long-run interest of the country and NPA if the new entity becomes economically viable. During negotiations Government and NPA agreed that prior to finalizing any commitment with a partner for a new structure of the workshop and ship repair activities, the commercial perspectives and investment needs of the new entity will be studied in detail in consultation with the Bank. B. Staffing and Training 3.07 NPA's present staff totals 1,267, including 70 at management level. Staffing has been kept at an almost constant level since 1978, with a less than 6.5% total increase over the period. There has been, however, a significant change in staffing structure, as the increase was mainly in intermediate and higher level staff. NPA's present hiring policy is based on apparent needs and a case-by-case approach with little overall manpower planning. The need for better personnel administration and manpower planning is demonstrated by the concentration of staff increases in the Directorate of Workshops as well as in the Directorate of Civil Works, where the activity level has not increased significantly. In the secondary ports, the number of staff has decreased slightly but further reductions are needed, mainly in Victoria and Garoua, in view of their decreasing traffic levels and present overstaffing. As part of the Action Plan for Organizational Development (Annex 5) agreed upon during - 7 - negotiations, NPA will present for comment to the Bank by June 30, 1984 a five-year manpower plan based on port activity projections. This Action Plan for Organizational Development also includes the hiring of a Deputy Director for the management of human resources by December 31, 1983. The proposed project includes some 18 man-months for consulting services to improve the structure of the Personnel Administration Department and for manpower planning. 3.08 NPA's salary adjustment system is basically automatic and does not provide adequately for individual merit recognition and incentives through selective salary adjustment. The proposed project includes 10 man-months of technical assistance to recommend improvements to the remuneration system and the personnel evaluation and grading system and to assist in implementing agreed improvements. In parallel, NPA has set up special training sessions on personnel motivation for its professional staff. 3.09 In the past, NPA relied upon expatriate technical assistance for highly qualified jobs related to supervision of construction of the new port under the Second Port Project. Due to the decreasing role of con- struction supervision in NPA and to the increasing availability of young Cameroonians, NPA can now gradually reduce foreign technical assistance by replacing some expatriates with qualified Cameroonians, for repair and maintenance work. NPA's future technical assistance program will be discussed annually with the Bank, as part of its manpower plan included in the Action Plan for Organizational Development (Annex 5). 3.10 NPA's technical training has improved significantly in the past three years. Under the Second Port Project, CIDA financed the reorgani- zation of NPA's internal training system which resulted in the organiza- tion of an adequate locally staffed training unit (with 24 part-time trainers, a qualified head of the training unit and support staff) and in the definition of 12 training curricula, to be implemented beginning in FY1982. In addition to this internal training system, NPA makes use of outside training for special requirements. Recently NPA prepared a tentative five-year training plan for outside training, to be revised annually. Also it will prepare by June 30, 1984 an internal training plan, as part of the manpower plan (para. 3.07). C. Port Management and Information System 3.11 NPA's management at the departmental and top levels is being progressively Africanized whenever qualified Cameroonians are avail- able. Newly created divisions such as those in charge of Statistics and Management Control are initially manned by technical assistants with suitable counterparts. Most managerial staff is well qualified and expe- rienced, and the quality of NPA's high-level managerial team is certainly one of its strong points. At the intermediate management level however, the weakness of financial incentives in NPA's remuneration system and of career planning has resulted in a rather apathetic attitude. NPA is aware of this problem and is trying to improve the situation. - 8 - Financial Information System, Budgeting and Corporate Planning 3.12 NPA's accounting system is generally satisfactory. It was suc- cessfully computerized and produces useful documents for decision-making at management level. NPA's fixed assets were revalued in 1981, as agreed under the Second Port Project. The revalued figures will be used for the calculation of depreciations for cost accounting and proposals for tariff adjustments. The inclusion of these revalued figures in the general accounts is still subject to a pending decision of the Ministry of Finances. During negotiations, the Government and NPA should agree to present annually to the Bank NPA's financial statements including re- valued assets in parallel with the financial statements required by national law. NPA should also agree to the annual up-dating of the evaluation of fixed assets. Adequate accounts are produced within two months of the closing date of the fiscal year and audited by a "public auditor" appointed by the Government. As the auditing procedure of the "public auditor" does not meet the Bank's standards regarding the audit of borrower's accounts, NPA agreed under the Second Port Project, to have its accounts audited by a private auditing firm. In the future, NPA should continue to submit audited financial statements to the Bank for review within six months after the end of the fiscal year. This proce- dure was confirmed at negotiations. 3.13 The ports' budgeting and management control systems have been modernized under the Second Port Project with technical assistance finan- ced by the CCCE. With this new budgeting system, NPA produces an ade- quate annual operating budget and can compare the actual result with the budgeted figure for each cost and revenue center. A budget review is organized every month at the Director General's level. The new budgeting system began functioning in January 1981, and is highly detailed and complete. However, it needs some simplification for reasons of practi- cality. The technical assistant who has been appointed to assist NPA in the implementation of the system will be retained for an additional two years. NPA has agreed to appoint promptly a qualified counterpart who can take over at the end of the expatriate's assignment. 3.14 NPA's financial system has grown increasingly complex with the increases in the volume of operations, with the development of financial operations in foreign currencies for servicing the debt, and with the extension of fixed assets. Recent staff reassignments have shown that intermediate-level staff were insufficiently trained and that there was a shortage of talents at the upper level. NPA agreed during negotiations to include in the Action Plan for Organizational Development (Annex 5) reinforcement of the financial sector through training of the staff, and by recruiting a qualified Deputy Director of Finances, once a new Director has been appointed, in consultation with the Bank. A Department for Corporate Planning will be established and adequately manned, in charge of preparing and updating annually the five-year revolving plan for port activities and the financial plan, and in charge of coordinating preparation of the investment and manpower plans. NPA agreed during - 9 - negotiations to include the establishment of this department in the Action Plan for Organizational Development (Annex 5). 3.15 In contrast, infrastructure investment planning is adequate but only as a result of consulting services provided under previous Bank projects. A Division of Economic Studies and Planning, in the Department of General Studies (Directorate of Studies) was created in 1979, but has not fulfilled NPA's expectations due to inadequate staffing. This sector of the Directorate of Studies must be reinforced with qualified local staff for economic studies. During negotiations, NPA agreed to include in the Action Plan for Organizational Development (Annex 5) the recruitment of a suitable candidate for the Division of Economic Studies. Statistics and Management Information 3.16 Recently, NPA undertook a complete revision of its statistical system for port operations to enable it to cope with the operational needs resulting from traffic increases and the need for operation of the management information system. However, the new system still needs to be further developed. The statistical system for port operations will be reviewed and improved following the UNCTAD recommendations for West African ports under the proposed project that includes technical assistance for this purpose. 3.17 With NPA's decentralization and the improvement in managerial techniques, the inadequacy of NPA's communication and information system is becoming more apparent, despite some recent improvements. The main problems are: (a) inter-departmental circulation of information and coor- dination for a task-oriented (non-hierarchical) approach; (b) avail- ability of basic technical documentation on port operations, accounting, economics, legal aspects, etc., below the upper management level; and (c) organization of an adequate records office and documentation center mainly for civil works, drawings, hydrography and dredging, statistics and accounting. The proposed project includes 14 man-months of technical assistance for improving NPA's communication and information system and for reorganizing its record office and documentation center. Data Processing 3.18 In the past, data processing for public entities was closely controlled by the Government. Therefore, NPA's data processing was per- formed mainly on the computer of the Presidency. With NPA's increasing requirements in this respect (e.g., statistics on operations, budgeting and accounting) the constraints and delays caused by the present system have become serious and prevent further development. The Government has recently changed its position on data processing policy in public firms, giving them more independence and accepting their autonomy in this respect. NPA is therefore considering the acquisition of its own autono- mous data processing system. This acquisition should be part of the implementation of a five-year plan to be agreed with the Bank covering the staged development of the port's data processing system. The proposed project includes provision for retroactively financing a review - 10 - of NPA's present data processing system by a qualified independent expert. This expert will assess NPA's present situation and its future needs, and prepare a long-term development plan to be submitted to the Bank for agreement by September 30, 1983 and to be promptly implemented thereafter. As a contribution to the implementation of the data processing plan, the proposed project includes provision for the procurement of hardware as needed for the implementation of the 1983-1985 portion of the agreed data processing development plan and technical assistance for software as needed for the transposition and improvement of the existing data processing system. Disbursement for computer hardware and technical assistance for software will be subject to the Bank's agreement on the review of the existing data processing system, and on the long-term data processing plan.- NPA agreed during negotiations, as part of the Action Plan for Organizational Development, to strengthen the upper level staff of the Data Processing Department, to allow it to cope with the sudden extension of its activities (Annex 5). IV. THE PORT OF DOUALA A. Port Facilities and Operations Port Facilities 4.01 The Port of Douala lies on the Wouri Estuary some 30 km from the ocean. The entrance channel is being dredged to a depth of 7.5 m over a length of about 22 km and to 9.5 m at the outer bar. Vessels up to 20,000 dwt will be able to use the Port when the ongoing dredging is completed except at the bar towards the third quarter of 1983. 4.02 Port facilities are largely on the Douala side of the estuary and.consist of: (a) a fishing port basin and a dockyard with 660 m long mar- ginal wharfs for fishing vessels and oil exploration boats; (b) along the entrance channel, 2,200 m of marginal wharfs (nominally fifteen berths) for general cargo, bulk berths for ALUCAM and CELLUCAM, containers and ro/ro; and (c) a log port basin with ramps for rolling logs into the water and a marginal wharf for loading logs in barges. Imports of petroleum products are handled at a mid-channel berth, while petroleum exports are handled in other ports in Cameroon. 4.03 The Port has a storage area of 106 ha, of which 6 ha are covered and 100 ha are open. Of the open storage, 22.6 ha are used for con- tainers, 20 ha for logs and the rest for bulk materials and general cargo. Access to the Port is provided by roads and railway spurs; a bridge connects Douala to the other side of the estuary at Bonaberi. At - 11 - Bonaberi there are two marginal wharfs adjacent to each other; one is used for unloading cement clinker and gypsum and the other for loading fruit. Dust from the clinker operation damages the fruit and creates an unhealthy environment for the stevedores. Under the project this situa- tion will be rectified through construction of a new marginal wharf on the Douala side for handling general cargo and fruit which may allow the vacated berth at Bonaberi to be modified and used for unloading a greater volume of cement clinker. Annex 3 describes the installations in Douala Port. Port Operations 4.04 NPA's functions at Douala Port include inter alia maintenance dredging of the entrance channel and along wharfs, buoyage and pilotage. NPA also operates a dockyard, a slipway, two floating docks, an ice plant and refrigerated storage for fish. General cargo traffic is handled by five independent stevedoring companies using their own equipment which they maintain. These companies lease sheds and open storage areas from NPA. Containers and ro/ro traffic are handled by a consortium of the five stevedoring companies that collect charges from the users. Log traffic, currently the second most important cargo in Douala, is handled by two autonomous companies which are owned in part by NPA. Alumina and its products are handled by ALUCAM and cement clinker by CIMENCAM; both companies are partly state-owned. The port has no working restrictions for nights or holidays. Details on port operations are also described in Annex 3. 4.05 NPA's port operations in Douala and cargo handling by private companies appear reasonably efficient when compared to some of the better managed West African ports; however, improvements need to be effected in maintenance dredging of the channel and along berths, in buoyage, in positioning of ships, pilotage, handling of fruit and in customs clearance procedures. The process of clearing containers has been slow. As a result of coordinated efforts by the parties concerned, NPA, customs and shipping agents, the average container storage time was reduced from about 45 days in 1980 to about 22 days in 1981. The Government and NPA are, following a recent study tour to European ports, preparing a plan of action for further reduction in the average container storage time which will be sent to the Bank for comment. B. Traffic - Past and Present 4.06 Total foreign traffic through Douala Port increased rapidly during the 1970s, particularly during the second half of the decade. Thus, total foreign traffic increased from 1.7 million tons in 1969 to 2.0 million tons in 1975 and 3.3 million tons in 1980 or by average rates of 3.2% p.a. and 10.9% p.a. respectively (Annex 4, Table 4.1). While the traffic growth slowed to 5.5% in 1981 to reach 3.5 million tons, this appears to have been a temporary phenomenon linked with a net decline in log exports. Preliminary traffic data for 1982 show 8.5% increase over - 12 - 1981 with imports increasing 11% and exports remaining unchanged due mainly to difficult log and timber market situation. 4.07 General cargo, including timber, accounted for about 75% of the traffic in 1969 and 60% of the 1981 tonnage. Bulk traffic handled at specialized facilities includes imports of petroleum products, clinker, gypsum, and alumina and exports of aluminum. Certain other minor items are also partly handled at the bulk facilities. 4.08 The tonnage of general cargo increased only marginally between 1969 and 1975--from 1.2 million to 1.3 million tons. However, in line with the faster growth in GDP, the general cargo tonnage rose to 2.1 million tons in 1980 or by 10.1% p.a., as compared with a growth rate of only 1% p.a., during the 1969-1975 period. Imports accounted for about 55% of the total general cargo tonnage in 1980 and exports for 45%. General cargo imports have been increasing faster than general cargo exports; between 1975 and 1980 the rates of increase were 13.0% and 7.3% p.a., respectively. 4.09 As for total traffic, the increase in general cargo suffered a temporary setback in 1981 as the growth in imports was offset by the decline in log exports. Rapid growth resumed in 1982 as the tonnage carried by general cargo vessels, container vessels and ro/ro vessels increased by about 17.5% over 1981 to reach 2.4 million tons. 4.10 The figures for general cargo exports include logs (approxi- mately 40% of the export tonnage). According to the Societe pour 1'exploitation des Parcs a Bois du Cameroun (SEPBC), approximately 70% of the logs are loaded from the waterside on board general cargo vessels, with the remaining 30% being loaded on returning mineral carriers or log carriers at buoys or at the ro/ro berth. The high percentage of the shipments on general cargo vessels is related to the organization of trade with substantial numbers of exporters and importers, which in turn results in small consignments. Other important exports are sawn timber, coffee, cotton and cotton oil, and fruit. The more important groups of general cargo imports are food and beverages, equipment (including iron and steel) and fertilizers. 4.11 General cargo is handled mostly by conventional break-bulk and multi-purpose vessels, although cargoes of fruit are carried by specia- lized reefer vessels loading under unsatisfactory conditions at the old fruit berth on the Bonaberi side (para. 4.03). The importance of con- tainer and ro/ro traffic has been increasing rapidly in recent years, aided by the new container berths and ro/ro facility. In 1980 container- ized traffic through the Port of Douala reached 411,000 tons in about 35,400 containers, averaging 11.6 tons per container. It rose to 553,000 tons in 1981. Roughly 60% of all cargo handled by ro/ro vessels are containerized. Approximately 90% of the container traffic is handled at the specialized container or ro/ro berths, with about 10% handled over the conventional general cargo berths (berths 3-11). Unlike many other developing countries, Cameroon's container traffic is fairly evenly balanced, with 305,000 tons of imports and 248,000 tons of exports in - 13 - 1981. This traffic pattern may, however, gradually change in the coming years inasmuch as general cargo imports are expected to grow faster than general cargo exports. 4.12 The average berth occupancy at the general cargo berths was 75% in 1980 and 73% in 1981, which is fairly high and the average ship- waiting time was 18 hours in 1980 according to NPA. As a result of increased traffic, the berth occupancy of the general cargo berths increased to an exceedingly high 85% in the first months of 1982, thus confirming the need for additional capacity. Apart from ships waiting due to lack of a vacant berth, this estimate also includes waiting by the larger vessels for high tide. V. INVESTMENT PLAN AND THE PROJECT A. NPA's Investment Plan 5.01 The Second Port Project was largely formulated on the basis of NPA's FY1977-1981 investment plan which laid heavy emphasis on physical elements geared to capacity expansion. The project provided most of the essential elements in that plan and also laid the foundations for an improved management system. 5.02 In view of the higher than anticipated traffic increases, the final part of this plan had to be accelerated by about one year in order to satisfy the demand (para. 5.05). Therefore, the rehabilitation of the old general cargo berths was successfully completed in 1980-1981. 5.03 For FY1982 to 1986, NPA has presented a new investment plan (Annex 4, Table 5.1) for a total of approximately CFAF 27.0 billion in constant francs, including replacements. The proposed project represents about CFAF 7.5 billion from a total of CFAF 21.4 billion for the FY1983- 1985 period. Essential items left out of the project are the oil explor- ation facilities, to be financed by the Government, and projects subject to further study, or to be executed on force account by NPA. 5.04 This plan is geared to extending port capacity following the expected traffic increase, to improving security of access, and to improving quality of service provided by Douala Port to landlocked countries. 5.05 Capacity extensions in the plan include: (a) the rehabilitation of quays 1 and 2, which are specialized for ALUCAM and CELLUCAM, completed in FY1982; (b) an extension by two berths (included in the proposed project) which is needed by CY1985 when general traffic is expected to reach 3.0 million tons; and (c) start of construction of a third container berth (included in the project subject to reconfirmation of its justification before start of construction) which is needed by about CY1988 when the traffic is expected to reach about 3.7 million tons. In addition, the investment plan includes items for improving the security of access and movement in the Port, with a stationary dredger - 14 - and a buoyage vessel, a logistic base for oil exploration, and the construction of a new headquarters for NPA, as well as the National Shipper's Council and the maritime companies. Subsidiarily, it includes the construction of a storage area for the landlocked countries, part of a regional project of assistance to these countries. The other items replace existing equipment. In addition to the capacity expansions under (a), (b) and (c) above, further general cargo capacity is likely to be needed by the early 1990s or when general cargo, including containerized traffic reaches about 4.3-4.6 million tons. The extent and timing of such further container or multi-purpose general cargo capacity expansions will depend on the rate of growth in general cargo traffic, the degree of containerization and the extent to which further productivity gains are achieved. 5.06 Most significant items of this plan are economically and techni- cally justified although the timing of the container crane purchase aimed at increasing berth capacity and the acquisition of a stationary dredger have to be studied further. In connection with the container cranes, it was concluded that the construction of a third container berth would be more advantageous taking into account the relatively modest investment cost of such a berth in the case of Douala (para. 6.04) and the fact that the container and multipurpose vessels presently serving or planned for West Africa are equipped with their own cranes for container handling. During loan negotiations NPA agreed not to acquire container cranes except with justification acceptable to the Bank. Studies for both maintenance and further deepening the channel from 7.5 m to 9 m, are included in the project. These studies will include technical, economic and financial evaluations and will be made available to the Bank by December 31, 1985. As agreed during negotiations, NPA will present to the Bank for review by June 30, 1984, as part of its corporate plan included in the Action Plan for Organizational Development, its investment and financing plan in two parts: Part A including all items economically and technically justified, and Part B for items envisaged but still subject to further studies. NPA will also present annually to the Bank, for discussion as part of this Action Plan, proposed changes to the investment and financing plan, over the disbursement period. B. Objectives of the Project 5.07 The main objectives of the proposed project are: (a) to provide additional port capacity to enable the Port of Douala to handle increasing traffic volumes under improved conditions, and with reduced ship-waiting and service time; (b) to improve navigational safety and ability to handle with- out undue delays larger ships by replacing an old, ineffi- cient tugboat by acquiring electronic positioning equipment, upgrading buoyage; and - 15 - (c) to improve further NPA's management information system, as well as its administrative and operating efficiency. C. Project Description 5.08 The project would comprise the following principal components: (a) Civil Works (i) construction of one 200 m long container berth and two 200 m long multi-purpose marginal berths, for handling mixed general cargo and, also at one of the berths, for loading fruit. The berths will be of steel sheet piling in 9.5 m water depth, with cathodic protection; (ii) construction of an approximately 46 m wide and 146 m long partly ventilated warehouse behind the first berth, for storage of fruit and general cargo; and (iii) construction of access roads and a railway spurl! on the apron of the first berth to handle heavy loads. (b) Equipment (i) mobile conveyors, for storage of fruit in the ventilated part of the warehouse and for loading of fruit onto ships; (ii) a tugboat of 1,700 hp with approximately 25-ton bollard pull; (iii) electronic positioning equipment; and (iv) upgrading of buoyage at the entrance channel. (c) Data Processing (i) technical assistance for data processing planning, including evaluation of computer requirements (8 man-months); and for software for management and technical operations (75 man-months); and 1/ The railway spur will be counter-sunk in the pavement to minimize the wear of tires on the cargo-handling equipment and improve operations. - 16 - (ii) a central processing unit and auxiliary equipment as defined in the data processing plan under (i) above. (d) Consulting Services (i) consultants for supervision of construction of civil works, tugboat, and for reception of fruit- handling equipment (82 man-months); (ii) consultants for establishing a system of staff evaluation and incentives (10 man-months); (iii) consultants for staff and manpower planning and personnel administration (18 man-months); (iv) consultants for organizing the records office and for filing technical, economic and managerial information (14 man-months); (v) consultants, for a port sector study (12 man- months); (vi) consultants for a dredging study plus mathematical model studies (30 man-months); and (vii) consultants for navigation aid study (17 man- months). 5.09 The consultants preparing the project considered alternative solutions for the handling of fruit, including the construction of a new multi-purpose berth (as recommended by them), the construction of a specialized fruit berth and the use of existing general cargo berths. Existing berths could not be used because of congestion and environmental problems while a specialized fruit terminal was not found to be economically and financially justified. The only suitable location for a new berth, as originally proposed, would be somewhere in the existing 600 m long gap along shore, adjacent to berth 11 and between the existing general cargo berths and the existing container terminal. Subsequently, in light of recent rapid traffic growth NPA and the Bank agreed to increase this project to two multi-purpose berths and a container berth. Construction of the container berth has been included as an option in the bid documents and in the project. Bank disbursement for this berth will be subject to confirmation, acceptable to the Bank of its justification (para. 5.16). D. Cost Estimates 5.10 The total estimated cost of the project is US$33.0 million equivalent. The cost estimates for civil works shown below are based on final designs and unit prices indicated by the consultants for similar - 17 - works and the preliminary bid evaluation by NPA/Direction Centrale des Marches (DCM) received in January 1983. The cost estimates for the other items are based on information obtained from builders of boats and equipment, and an estimated 183 man-months for consultants' work and 83 man-months of technical assistance for data processing at US$12,000 per man-month including per diem, transportation and other reimbursable items. Estimates are calculated in January 1983 prices and include price escalation and physical contingencies over the project period. Given the uncertainty in soil conditions (the area was used for dumping all kinds of debris), 15% physical contingencies were assumed for all civil works. Price contingencies have been calculated for foreign costs at 8.0% in FY1983, 7.5% in FY1984, 7% in FY1985 and 6% in FY1986-1988; for local costs at 12% annually. Project Cost Summary 1/ , 2/ (CFAF mi II Ion) (US mi l l ion) % of Foreign % of Total Local Foreign Total Local Foreign Total Exchange Base Costs Civil Works 1,666 2,856 4,522 4.9 8.4 13.3 63 40 Fruit-Handling Equipment 34 272 306 0.1 0.8 0.9 89 3 TugBoat -- 1,020 1,020 -- 3.0 3.0 100 9 Electronic Position Systems 170 170 -- .5 .5 100 2 Buoyage -- 68 68 -- .2 .2 100 1 Data Processing Equipment -- 272 272 -- 0.8 0.8 100 2 Consultants 238 544 782 0.7 1.6 2.3 69 6 Technical Assistance for Data Processing 68 272 340 0.2 0.8 1.0 80 3 Total Baseline Costs 2,006 5,474 7,480 5.9 16.1 22.0 73 66 Physical Contingencies 238 612 850 0.7 1.8 2.5 72 7 Price Contingencies 1,326 1,496 2,822 3.9 4.4 8.3 53 26 Total Project Costs 3,570 7,582 11,152 10.5 22.3 32.8 68 99 Front-end fee on Bank Loan -- 68 68 -- 0.2 0.2 100 1 Total Financing Required 3,570 7,650 11,220 10.5 22.5 33.0 68 100 1/ Rate of exchange 340 CFAF = 1.0 US$. Base costs as of January 1983. 2/ For details see Annex 4, Table 5.2; the cost estimates exclude taxes (the project will be exempted of taxes and duties). 5.11 Given the complicated soil conditions at the proposed location of the new berths, it was difficult to estimate project costs reliably. Furthermore, bid prices were expected to be affected by the existing workloads of pre-qualified contractors. NPA decided therefore to receive tenders prior to loan negotiations so that project costs could be adjusted as necessary; normal physical contingencies have been retained - 18 - for civil works to cover possible claims arising from difficulties in driving the steel sheet piling. E. Project Financing 5.12 The Bank will finance foreign exchange costs of US$22.5 million equivalent and NPA will finance local costs of the project of US$10.5 million equivalent. F. Project Implementation 5.13 NPA will be responsible for overall project implementation in accordance with the time schedule as shown in Chart 2. NPA will engage consultants satisfactory to the Bank to supervise construction of civil works. NPA is preparing, with the assistance of consultants, performance specifications for construction of a tugboat; the same consultants will also assist NPA in evaluating the bids for the tugboat and will supervise its construction. NPA had retained consultants to prepare tender docu- ments for the fruit-handling equipment and assist in the acceptance of the equipment. Overall project implementation is expected to take about five years and is scheduled to be completed by the end of 1988 (Chart 2). NPA will also retain consultants for (a) port sector study; (b) dredging study; (c) navigational aid study; (d) personnel administration; (e) staff evaluation; and (f) information systems. G. Procurement and Disbursement 5.14 All civil works and equipment will be procured under inter- national competitive bidding procedures following Bank guidelines. The computer will be procured under international competitive bidding fol- lowing the performance specifications prepared by the consultants for electronic data processing (EDP) planning, financed under the proposed project. Prequalification of contractors for the Douala Port extension civil works was carried out between July 15 and August 31, 1981 by NPA and the procurement agency (Commission Centrale des Marches - CCM) and the results were reviewed and six contractors prequalified. Also, draft bid documents for the above works incorporating changes recommended by the Bank have been revised and were distributed to the prequalified con- tractors July 27, 1982. Bids were received by DCM in October 1982 and preliminary evaluation completed by them December 1982. According to the latest program reviewed with NPA in January 1983, the overall project execution is expected to start after Board presentation (Chart 2). In the civil works bid documents, the construction of the third berth has been included as an option. Due to possibilities of additional cost reductions, DCM/NPA are considering awarding the contract for all three berths. NPA will appoint qualified consultants to assist with project implementation. These and other consultants financed by the loan will be selected on the basis of procedures to be agreed with the Bank and on terms and conditions satisfactory to the Bank. - 19 - 5.15 The proposed project includes provision of US$100,000 for retro- active financing of expenditures incurred after July 1, 1982. This comprises an amount of US$80,000 for the revision of NPA's EDP system and preparation of a long-term plan for data processing to be completed before procurement of the hardware equipment and software, as well as US$20,000 for the preparation by consultants of performance specifi- cations and bid evaluation for the tugboat. 5.16 The disbursement on the following items will be subject to the preliminary fulfillment of specific conditions: (a) the optional container berth will be subject to confirm- ation, satisfactory to the Bank, that it remains economically justified; (b) the EDP hardware and technical assistance for software will be subject to the presentation by NPA of a long-term EDP plan acceptable to the Bank; and (c) the fruit-handling equipment will be subject to assurance by NPA and the Government, satisfactory to the Bank, that the equipment will be used for the intended purpose. 5.17 The proposed Bank loan would finance 63% of the total cost of civil and related works, 100% of tugboat, data processing equipment, electronic positioning equipment and upgrading of buoyage in the entrance channel, 89% of fruit-handling equipment, 80% of technical assistance for data processing and 69% of consultants' services. Disbursements from the Bank loan will be made on receipt of full documentation. 5.18 While preparing the disbursement schedule, various profiles including that of the Second Douala Port Project were reviewed. The normal Bank profiles indicate a disbursement period of about eight years while the disbursement period for the Second Douala Port Project was five years. In the case of the Third Douala Port Project, tenders for civil works have been received. Execution of these works is not expected to be longer than 30 months. Taking these factors into account, the normal Bank profiles were compressed to five years (Chart 2). The cost estimate and the disbursements are based on the following time schedule. - 20 - Estimated Disbursement Schedule, FY1982-1988 (US$ millions) IBRD Fiscal Year and Quarter Quarter Cumulative 1983/84, quarter ending December 30, 1983 1.5 1.5 March 31, 1984 1.6 3.1 June 30, 1984 1.8 4.9 1984/85, quarter ending September 30, 1984 1.2 6.1 December 31, 1984 1.5 7.6 March 31, 1985 1.5 9.1 June 30, 1985 0.6 9.7 1985/86 quarter ending September 30, 1985 0.7 10.4 December 31, 1985 0.8 11.2 March 31, 1986 1.2 12.4 June 30, 1986 1.2 13.6 1986/87 quarter ending September 30, 1986 1.2 14.8 December 31, 1986 1.2 16.0 March 31, 1987 1.2 17.2 June 30, 1987 1.0 18.2 1987/88 quarter ending September 30, 1987 1.0 19.2 December 31, 1987 1.0 20.2 March 31, 1988 0.8 21.0 June 30, 1988 0.8 21.8 1988/1989 quarter ending September 30 1988 0.7 22.5 H. Environmental Impact 5.19 The proposed project should not have any measurable adverse effect on the Douala Port region. The transfer of fruit operations from the Bonaberi side, adjacent to the clinker berth, to the new multi- purpose berth on the Douala side should greatly improve the working environment for the stevedores engaged in fruit-loading operations. - 21 - VI. ECONOMIC EVALUATION A. Traffic Analysis and Projections 6.01 General cargo traffic at Douala increased at about 10% p.a. between 1975 and 1980 and totalled about 2 million tons (para. 4.08). Following a temporary slow-down in 1981, the rapid traffic growth continued in early 1982 (para. 4.09). The rapid growth in general cargo traffic, particularly for imports, accompanied substantial growth in the Cameroon economy. As indicated in para. 2.01, GDP increased by an esti- mated 8.1% p.a. between FY1977 and FY1981. With continuing Government priority being given to agriculture and other productive sectors and with substantial increases in oil and gas production expected, the prospects for continued economic growth of at least 7% p.a., through the 1980s appear favorable. 6.02 Traffic projections for the Port of Douala through 1990 were originally prepared by French Consultants OCCR. Long-term traffic fore- casts for the Port of Douala and other ports through the year 2000 were prepared by the Consultants BCEOM and OCCR in late 1980, in conjunction with a major study of the prospects for a new deep-water port in the southern part of Cameroon to help open up that part of the country. Taking into account these studies, NPA prepared traffic forecasts for Douala by major commodity through 1990, together with separate forecasts for containerized traffic. These forecasts are reasonable and were, with certain modifications, used for the economic evaluation. The modifica- tions involved primarily the use of a somewhat faster rate of growth for the category "Other Imports" and considerably more conservative forecasts for certain future exports, particularly for fruit, logs and the category "Other Exports." The general cargo traffic forecasts are summarized below and indicated in more detail in Annex 4, Table 6.1. Port of Douala General Cargo Traffic Actual and Forecast, CY 1980-1990 ('OOOs tons) Actual Forecasts 1980 1981 1985 1988 1990 General cargo imports 1,164 1,211 2,053 2,705 3,234 General cargo exports 837 781 951 1,044 1211. Total 2,001 1,992 3,004 3,749 4,345 These forecasts imply an average annual growth rate between 1980 and 1990 of 11.0% p.a., for imports and 2.9% p.a., for exports, showing an overall average of 8.1% p.a. These growth rates are considered realistic and perhaps somewhat conservative. The comparable average annual growth rates for 1975-1980 were 13.0%, 7.3% and 10.1% p.a., respectively, when GDP was growing only marginally faster than what is expected during the 1980s. If gas and petroleum revenues were used mainly for increased purchases of foreign consumer or capital goods, imports would increase faster than envisaged. - 22 - 6.03 Some uncertainty exists with regards to the future development of banana exports: Between 1973 and 1979, exports averaged 70,000 to 80,000 tons, but fell to 64,000 tons in 1980 (Annex 4, Table 4.1) and to 58,000 tons in 1981 due to drought and plant diseases. Inland transport and the loading facilities have also been problem areas. The Government is aware that measures need to be taken to revitalize the industry and has already taken some steps including: (a) a study by French experts to determine ways to improve inland transportation from banana plantations to the Douala Port; and (b) the early 1981 management shake-up of the Cameroon Banana Organization (OCB). Some thought is also being given to irrigation to improve quality and quantity and reduce seasonal fluc- tuation in production. Marketing is not considered a constraint due to the existing marketing arrangements which guarantee the Cameroon a quota in France at favorable prices. Improvements to the port facilities are, however, important for any recovery and expansion as assumed by the Con- sultants and NPA. The Consultants assumed that banana exports would recover and stabilize at about 80-90,000 tons along with 10-20,000 tons of pineapples, for a total fruit export volume of about 100,000 tons. These forecasts are much lower than NPA's latest forecasts. For this report, a lower, constant banana export figure of 50,000 has been used together with 20,000 tons of pineapples for a total fruit tonnage of 70,000. 6.04 As indicated in para. 4.11, container and ro/ro traffic have been increasing rapidly in recent years. For their traffic forecasts and analysis of general cargo berth utilization and ship-waiting time, the Consultants projected container and ro/ro traffic through 1990. These appeared overly conservative to NPA who, based on a commodity-by- commodity analysis, prepared new forecasts for container traffic through 1985. According to these forecasts, the container volume projected by the Consultants for 1990 might be achieved as early as 1985. For the Port Simulation Model (PORTSIM) analysis of the general cargo berth uti- lization and ship waiting by the Bank, NPA's projected extent of contain- erization was broadly used and extended to 1990. According to these forecasts, containerized traffic would increase from about 21% of all general cargo traffic in 1980 and 27% in 1981, to about 41% in 1985 and 55% in 1990. Without the existing excess capacity of the container terminal and the expected increase in the share of containerized traffic in the increasing general cargo traffic, additional general cargo capacity would have been required earlier and at the rate of about one new berth per year. The addition of the two multi-purpose berths are required by CY1985. Depending on the traffic growth, the degree of containerization, and the improvements in cargo-handling productivity at the container terminal, the addition of a third container berth will be needed by about CY1988. As indicated earlier (para. 5.14), NPA therefore has included in the civil works bid documents an option for construction of one additional container berth, expected to be completed by 1988. NPA has also requested its inclusion in the proposed project, subject to confirmation of its justification on the basis of updated traffic and productivity data. By avoiding double mobilization and the need for construction of a return wall, this approach results in lower - 23 - construction costs than if tendered separately; the incremental cost of the container berth, without price contingencies but including physical contingencies, is about US$4.2 million. The incremental justification for the third berth is discussed further in para. 6.11. It was assumed that all full container vessels, part of containerized traffic by multi- purpose vessels and all ro/ro traffic would be handled at the specialized container and ro/ro berths, that the two multi-purpose berths would handle both containerized general cargo, including fruit and that the remaining traffic would be handled at the existing general cargo berths. For the economic analysis, traffic volume beyond 1990 was kept constant as additional port capacity could then be needed. B. Project Benefits Container and Multi-purpose Berths and Related Equipment and Services 6.05 The quantified benefits from these items include: (a) reduced ship-waiting times for general cargo vessels, including multi-purpose vessels, as well as full container vessels due to increased port capacity -- the project item is not assumed to affect general cargo handling productivity significantly and no benefits from reduced general cargo ship service times were therefore considered; (b) reduced ship service times for reefer vessels loading bananas or pineapples; (c) reduced damage to banana cargoes and hence greater returns to banana exporters as the price for bananas varies with the quality of the fruit at unloading. Benefits which have not been quantified include greatly improved working conditions for dockers loading fruit, avoidance of the extra cost to ship owners from clinker dust, some reduction in ship waiting of clinker vessels which may be able to use the vacated banana berth in anticipation of discharging clinker or for final clean-up!' and supplemental employment generated during project construction. 6.06 PORTSIM was used for estimating general cargo ship-waiting time costs as well as reefer service time and ship-waiting costs using an average daily cost of $9,000 per day for reefer vessels and $8,000 for general cargo vessels; $9,500 for multi-purpose vessels carrying substantial quantities of containers and $13,800 for full container vessels. Reefer vessels could load up to 2,000 tons in 36 hours as 1/ Additional investment would be required by CIMENCAM before the berth could be used for discharging clinker. - 2.4 - compared with the present loading rates of about 75 hours, La1king into account a new conveyor loading system and ventilated storage for buffer stock provided under the project. For general cargo vessels it was assumed that productivity would continue to improve moderately, from about 560 tons per vessel day in 1981 to about 650 tons per day in 1985 and 700 tons in 1988. For full container vessels using ships gear the productivity was assumed to improve from about 2,300 tons per day in 1981 to about 3,000 tons in 1988. These productivity rates are considered reasonable. The same general cargo productivity figures were used with and without the project. 6.07 The estimate of potential benefits from reduced damage to fruit cargoes from the transfer to the new multi-purpose facility with improved cargo-handling equipment and ventilated storage is based on: (a) an export volume of 50,000 tons of bananas; (b) average prices on the French market in 1980 by category based on quality characteristics; and (c) details of the share of Cameroonian bananas sold in France in 1980 by category as well as assumptions regarding the possible increase in the relative share of the higher quality by categories as a resu-1-C of better port facilities and less damage to the fruit during waiting and loading. 6.08 For the economic analysis, it has been assumed that all benefits from reduced reefer service times and costs, as well as the reduced damage to bananas, and hence higher prices would accrue to Cameroon. This assumption is reasonable since bananas are sold on a commcission basis in the importing countries rather than on a f.o.b. basis. Thus, both the freight costs and the effects of lower banana qual-4-ty and price are borne by Cameroon. In the case of reduced general cargo ship-waiting costs, it has been assumed that only 60% of these benefits would accrue to the Cameroon, resulting from the further assumption that national flag vessels will carry at least 20% of the general cargo trade with all bene- fits accruing to Cameroon but that only 50% of the avoided ship-waiting costs to foreign ship-owners will be recaptured by Cameroon through avoided surcharges or freight increases and through increased port charges (para. 7.06). The share would be greater if Cameroonian vessels carried a greater share, such as the 40% mentioned in the United Nations Convention on a Code of Conduct for Liner Conferences. The resulting cost and benefit streams are summarized in Annex 4, Table 6.2. The capital costs include physical contingencies. New Tug and Navigational Assists 6.09 The Port of Douala has two boats: (a) one is six years old with an engine of 1,200 hp but an effective power of only about 850 hp due to a stability problem; and (b) one twenty-year old vessel with an engine of 950 hp. The second tug is approaching the end of its economic life. Furthermore, the relatively modest horsepower of the tugs makes for difficult maneuvering of the larger vessels, taking into account the currents and wind as well as the relatively restricted turning basin, particularly for tankers and dry bulk vessels. According to NPA, at present the tankers and dry bulk vessels lose about 2 hours for berthing/unberthing due to tug limitations; similar losses occur to about - 25 - 60% of the general cargo vessels while another 10% may lose up to 12 hours. In addition, about 10% of the vessels lose about one hour waiting for tugs for shifting. The main quantified benefit from the acquisition of the new, more powerful (1,700 hp) tug will therefore be reduced ship waiting and berthing/unberthing times. An additional benefit, which has not been taken into account in NPA's analysis, is the savings in all or part of the operating costs of the existing old tug which would be at least partly replaced by the new tug. 6.10 The electronic positioning equipment and upgrading of existing buoyage at the entrance channel to Douala will improve navigational safety as well as dredging efficiency. Due to their small investment cost and significant benefits, a separate economic evaluation was not carried out. C. Economic Return and Sensitivity Analysis Container and Multi-purpose Berths and Related Equipment and Services 6.11 On the basis of projected general cargo traffic and producti- vity, the quantified benefits discussed in Section B above, estimated capital costs (including physical contingencies), maintenance/operating costs and a 20-year economic life, these project items (representing about 73% of the project cost) would yield a rate of return of 34% and a FYB of 22% with a 12% cost of capital. Even if all the benefits related to avoided damage to fruit and reefer ship waiting and service reductions were excluded, the project would yield a rate of return of 29% with a FYB of 17%, which is satisfactory. The incremental FYB for the optional third berth is 17% in 1988 based on the best assumptions for traffic growth, degree of containerization and productivity. The incremental economic rate of return (ERR) for the third berth would be 34%. If traffic levels were to be 10% lower than forecast or if productivity at the container terminal were to be 5% higher than foreseen, the FYB for the optional berth would fall to 7% or 13% in 1988 respectively. Taking into account the fact that the cost of construction of the berth would be higher if construction were deferred and carried out separately (para. 6.04), as well as the satisfactory incremental rate of return for the berth, it is considered appropriate to include the third berth in the proposed project. However, in light of the justification's sensitivity to lower traffic growth and higher productivity, disbursements for this berth would be subject to confirmation, satisfactory to the Bank, that the berth remains economically justified. Tugboat 6.12 The economic analysis prepared by NPA takes into account the acquisition cost of the new tugboat and its full operating and maintenance costs on the one hand and the reduced ship waiting and berthing/unberthing times and costs based on existing conditions on the other. On this basis the ERR is estimated at 18%. The analysis is conservative as it does not take into account the savings of at least - 26 - part of the operating and maintenance costs of the old tug and the fact that waiting and berthing/unberthing times and costs without the new tug would have increased substantially as the old one became less and less useful and the Port would basically be left with one tug. Combined 6.13 The ERR for the project as a whole, including the costs and benefits from the two multi-purpose berths with related equipment and the tug as well as the costs of data processing, navigational aids and technical assistance, but without counting any benefits from these items would be 27%, and 24% if the benefits related to fruits are excluded. These rates of return exclude benefits assumed to accrue to foreign shipping lines. The sensitivity of the rate of return to more pessimistic assumptions on key variables were tested. The main results are indicated in Annex 4, Table 6.3 and are satisfactory. The project is therefore considered well justified. VII. FINANCIAL EVALUATION A. Past and Present Situation 7.01 Since 1976, NPA has followed the financial policy agreed under the Second Port Project, whose main characteristic was to significantly raise cash generation for servicing rising interest on the debts incurred for financing the port extension. NPA's nominal contribution to invest- ment was anticipated to decline, because the annual amount of investment was expected to decrease substantially after the opening of the new facility in FY1980. However, the actual activity level of the Port has been somewhat higher than projected and further capacity extensions have been needed since FY1980. Therefore, NPA's principal problem at present is to further raise its cash generation for backing its development plans. 7.02 Tables 7.1-7.6 in Annex 4 show NPA's and Douala Port's balance sheets, sources and applications of funds, and income statements for FYsl975-1982. A summary of the tables follows for FY1976-1982: - 27 - Summary of NPA's Financial Statements, FY1976-1982 (in million CFAF) FY1976 FY1978 FY1980 FY1982 Income Statements Operating revenue 2,180 3,584 5,322 8,781 Working expenditures 1,441 2,267 3,238 4,863 Cash generated from operations 739 1,317 2,084 3,918 Depreciation 652 814 1,377 2,199 Interest 2 151 942 1,369 Net profit (loss) 71 352 (235) 429 Working ratio .66 .63 .61 .55 Debt service coverage ratio - 9.1 2.2 1.87 Balance Sheets Net fixed assets 9,639 21,153 39,010 47,384 Equity 10,625 12,646 17,236 20,413 Long-term debt 365 9,502 23,267 25,700 Net working capital 1,351 995 1,493 (1,271) Net current assets (excluding cash) 469 614 818 (825) Cash 882 381 675 (446) Debt equity ratio 3/97 43/57 57/43 56/44 Rate of return on fixed assets .7 3.0 2.1 4.0 Sources and Applications of Funds Applications Capital investment 922 9,562 10,283 3,803 Debt service 2 151 1,067 2,011 Total applications 924 9,713 11,350 5,814 Sources Cash generated from operations 739 1,317 2,084 3,870 Grants and subsidies on investments 165 1,255 2,373 1,040 Long-term borrowing 370 8,699 8,163 1,151 Total sources 1,274 10,166 12,620 6,061 Increase in working capital (dec.) 820 876 1,219 481 Cash increase (decrease) (470) (423) ( 51) (234) 7.03 The main change in NPA's situation has been the need, since FY1976, for a higher cash flow to cover interest on long-term debt which was close to zero in FY1976 and CFAF 1,369 million in FY1982. This increase was anticipated as early as 1976 and its actual amount is in keeping with the projections made under the Second Port Project. 7.04 NPA's cash generation has increased sufficiently in the past to cover its debt service. It was CFAF 739 million in FY1976 (34% of revenue) and reached CFAF 3,918 million in 1982 (44% of revenue). The observed improvement is attributable to productivity gains and to timely tariff increases. - 28 - 7.05 Revenue increased by 302% from 1976 to 1982 (26% per annum). This increase is attributable to traffic increases of 96% (11.9% per annum) and tariff adjustments of 105% over six years (25% in real terms). Port revenues are based on the tonnage of merchandise imported and exported, on the number and size of ships, and on the berth occupancy. In the past, these statistics showed dissimilar trends: tonnage increased by about 11.9% per year; average ship size increased moderately from 8,317 tons gross weight in 1976 to 9,245 tons in 1982; ship number increased slightly from 1,328 to 1,391 during the same period of time, and berth occupancy was about constant with 3,920 days in FY1976 and 4,256 days in FY1982. The stagnation of berth occupancy and number of ships is attributable to the 71% increase in average ship load and to the increase in cargo handling productivity. Therefore, with constant tariff, NPA's revenue would have increased only on merchandise, while other categories of revenue would have stagnated. In order to compensate for these changes in the traffic structure, tariffs were selectively raised: moderately on merchandise (about +48%) and more significantly against ship (about +187%). The price of rentals, which was insufficient in 1976, has been also increased significantly by about 160%. 7.06 During the 1976-1982 period, NPA's tariff structure has thus significantly improved. However, it reflects mainly the direct cost of services, excluding depreciation on all operational assets, interest, and overhead expenses. During negotiations, NPA has accepted to include in the Financial Action Plan, a revision of its tariff structure based on full costs, including depreciation on all operational assets, interest and a sufficient contribution to overhead expenses. 7.07 Working expenses increased less than revenue (237%, or 22% per annum), from 1976 to 1982. This increase was reasonable, considering the 72% inflation during the same period and the 96% traffic increase. The constancy of the total number of staff in combination with the increase in traffic during the period indicates that staff productivity gains were substantial, but the most recent indications suggest that these economies of scale may have come to an end. Therefore, additional efforts have to be made to control staff numbers and costs. Staff number and cost will be controlled through: (a) improved manpower planning (para. 3.07); and (b) modification of the annual salary increase system, so as to replace the present automatic merit increase by a differentiated increase depending on individual performance, as evaluated through the personnel evaluation and grading system to be implemented under the proposed project (para. 3.08). NPA has agreed, as part of the Financial Action Plan, to limit total average salary increases resulting from promotion and seniority to 3% per annum starting in FY1984. Technical assistance is provided under the proposed project for these purposes (paras. 3.08 and 3.14). 7.08 As a consequence of the trends in revenue, costs and interest on long-term debt, NPA's self-financing capacity after debt service payment, available for investment financing and raising working capital on its own funds, has moderately improved from CFAF 737 million in FY1976 to - 29 - CFAF 1,993 million in FY1982. This increase in nominal terms corresponds to a stagnation in real value, which was foreseen under the Second Port Project, as the main NPA investment program was expected to be completed by FY1979, and therefore no increase in NPA's self-financing capacity in real terms for FY1979-FY1982 was anticipated by that time. However, as a result of the recent trends in traffic, and the good prospects for future developments, NPA accelerated its investment plans. Therefore, NPA's cash generation must be raised significantly to meet future debt service and self-financing requirements (para. 7.20). 7.09 NPA's investments in fixed capital for the FY1976-1982 period amounted to CFAF 47.1 billion and were generally supported by adequate financial studies. The investments included mainly the second Douala Port Project, in addition to which NPA spent about CFAF 21 billion for the rehabilitation of the old port and miscellaneous operations, which were generally justified, financed mainly from external funds. Over the FY1976-FY1980 period, NPA's contribution to investment declined from 42% in 1976 to zero in 1980, while capital investment was increasingly being financed from the Government's contribution and subsidiarily, from short- term resources. Since FY1980, NPA has succeeded in raising its contribution to about 22% in FY 1982. In the future, the recent trend should be amplified, and the financial autonomy and working capital of NPA restored (See Financial Action Plan, Annex 5B and paras. 7.22-7.23) Summary of NPA's Investment Financing Policy 1976-1980 (cumulative in million CFAF) Applications Capital investment 47,187 Financing Subsidies and grants 9,134 Long-term loans 27,842 NPA's contribution 10,211 % NPA 21% 7.10 Total long-term sources of funds (including NPA's cash genera- tion, long-term borrowings and subsidies from the Government) were lower than total long-term applications of funds (including capital investment and debt service) over the FY1976-FY1982 period (CFAF 48,917 million, as compared to CFAF 51,363 million) (Annex 4, Table 7.3). Hence, NPA's working capital decreased alarmingly from CFAF 1,498 million in FY1975 to minus CFAF 1,271 million in FY1982. 7.11 Moreover, NPA's management of net current assets (excluding cash) has contributed to worsen its liquidity situation: commercial receivables increased significantly from CFAF 613 million in FY1976 to CFAF 2,267 million at the end of FY1982, equivalent to three months of revenue, despite recent improvement in the billing and collection system. As part of the Financial Action Plan, NPA has agreed during - 30 - negotiations to pursue its efforts and to strengthen the authority of the operational department--which is in closer contact with the customers-- for charge collection. This move will permit the level of commercial receivables to be reduced from three months of revenue to two months by June 30, 1984. This target is included in the Financial Action Plan. 7.12 The combination of increasing commercial receivables and financing part of the capital investment from short-term resources has resulted in a very tight cash situation, whereby, as of June 30, 1982, NPA had a CFAF 446 million overdraft. NPA's future financial policy should improve this situation (para. 7.22). B. Future Situation 7.13 In order to determine under which conditions NPA will be in a position to generate the cash required to finance its long-term invest- ment plan and restore its cash situation, the financial tables (Tables 7.7-7.9 in Annex 4) have been prepared in current CFAF. Assump- tions for future prices and traffic are shown in Annex 4, Table 7.10. Subsidiary tables have been prepared for the Douala Port alone and are contained in the project files. 7.14 Determining factors for the future financial situation of NPA are as follows: (a) Traffic will continue to increase rapidly, sustained by Cameroon's good growth prospects and increasing oil revenues. A growth rate of 9.3% p.a. for total traffic (4.2 million tons in 1982 and 5.4 million tons in 1985) which has been forecast for the FY1982-1985 period (Annex 4, Tables 6.1 and 7.10), will prove decisive for expected improvements in NPA's financial situation; (b) The most important basic infrastructure capacity extensions of the Port have been completed under previous projects. Future investment needs are expected to be fairly limited (about CFAF 5.4 billion p.a., Annex 4, Table 5.1). They should however be phased according to the actual growth in traffic, in order to permit an improvement in NPA's financial rate of return; and (c) NPA's debt service will increase significantly starting in FY1983, because the grace period on major loans for the Second Port Project will terminate and because of the increase in interest rates on future loans. This increase will put a constraint on NPA's borrowing capacity. - 31 - 7.15 In view of these factors, NPA's financial policy must aim at: (a) raising its cash generation to service its substantial debt resulting mostly from past investment, and to finance the necessary increase in its working capital; (b) improving the management of its commercial receivables, to further improve its liquidity; and (c) avoiding excessive increase in long-term debts, and conse- cutive additional debt service, by raising NPA's capital investment self-financing rate. Raising Cash Generation 7.16 In order to meet the objectives mentioned above, cash generation must soar from CFAF 3.9 billion in 1982 to CFAF 7.4 billion in FY1985 and 9.6 billion in FY1987. It will require that revenue growth reaches 68% (18.9% per annum) between FY1982 and FY1985, while working expenses would only increase by 52% (14.9% per annum). This forecast increase in cash generation from operations is, however, a continuation of past performance, and is feasible under projected traffic increase and acceptable tariff adjustments. 7.17 The 68% increase in revenues between FY1982 and FY1985 will result from tariff adjustments for about 46%, and from traffic growth for about 15%. Of the 46% tariff increase, 39% will be due to price increases, and about 5% to limited tariff increase in real terms. A 16% tariff increase, equivalent to a 5% increase above inflation, to be effective in FY1983, is necessary to allow NPA to improve its cash situation. The principles for future tariff increases was agreed during negotiations and incorporated in the Financial Action Plan and in the guarantee Agreement. The 15% increase in revenue due to growth in traffic corresponds to a high 30% tonnage increase, but is partially offset by a declining average ship-berthing time (from 3.1 days in FY1982 to about 2.8 days in FY1985) because of productivity increases. 7.18 The significant 52% increase in working expenditure during the FY1982-FY1985 period is due: (a) for 33% to the effect of anticipated increases in international prices averaging 9% per annum and in domestic prices averaging 11% per annum, together with annual salary increases slightly above inflation; and (b) for 14% to the effect of increasing port activity on working expenses. However, a reasonable 2.5% annual staff productivity increase was also taken into account, as a result of the effort to be undertaken by NPA in this respect. 7.19 The CFAF 6.4 billion cash generation objective for FY1984 (CFAF 8.7 billion for FY1986) corresponds to a working ratio of approximately .50 from FY1984 onward. Target values of respectively .52 and .50 are included in NPA's Financial Action Plan (Annex 5), as agreed upon during negotiations. Financial forecasts are summarized below and detailed in Annex 4, Tables 7.7 to 7.10. - 32 - Summary of NPA's Projected Financial Statements (in CFAF millions) 1982 1984 1986 Income Statements Operating revenue 8,781 12,936 17,090 Working expenditures 4,863 6,515 8,351 Cash Generated from Operations 3,918 6,421 8,739 Depreciation 2,199 3,135 4,034 Interest 1,369 1,537 2,484 Net Result on Operations 429 1,913 2,404 Working ratio .55 .50 .50 Debt service coverage ratio 1.87 2.62 2.22 Balance Sheets Net fixed assets 47,384 62,845 71,059 Equity 20,413 31,915 35,525 Long-term debt 25,700 30,582 36,664 Net Working Capital Net current assets (excluding cash) (825) (366) 374 Cash (446) 18 757 Debt equity ratio 56/44 51/49 51/49 Rate of return on revalued fixed assets (%) 3.7 4.5 4.9 Sources and Applications of Funds Applications Capital investment 3,803 12,997 7,815 Debt service 2,011 2,441 3,934 Total Applications 5,814 15,438 11,749 Sources Cash generated 3,870 6,309 8,553 Grants and subsidies on capital investments 1,040 4,025 30 Long-term borrowing 1,151 5,571 4,121 Total Sources 6,061 15,905 12,703 Increase in working capital (dec.) 481 575 446 Cash increase (dec.) (234) (99) 509 Cash balance at end of year (446) 18 757 7.20 With the investment plan described in Chapter V and in Annex 4, Table 5.1, NPA will have, after servicing the debt, a rapidly increasing self-financing capacity amounting to CFAF 1,859 in FY1982, CFAF 3,868 million in FY1984 and CFAF 4,590 million in FY1986. This self-financing capacity must be used: (a) to increase NPA's share in future investment - 33 - financing in order to limit its debt service increase; and (b) to meet its working capital and cash needs. Improving Cash Situation and Working Capital 7.21 NPA's net short-term assets, including cash are insufficient, and even negative, imposing unnecessary budgetary constraints on oper- ations. They are expected to increase by CFAF 1,199 million, from CFAF -825 million in FY1982 to CFAF 374 million in FY1986. NPA will contribute these CFAF 1,199 million from its self-financing capacity. NPA has agreed during negotiations to include in the targets of its Financial Action Plan, the reduction of commercial receivables to two months of revenue. These measures will permit NPA to wipe out its bank overdraft by the end of FY1983 and to maintain its cash at a sufficient level (CFAF 757 million by the end of FY1986). NPA agreed to include in its Financial Action Plan the elimination of overdrafts by December 31, 1983, except for short periods. Increasing NPA's Contribution to Capital Investment 7.22 NPA's contribution to future capital investment must be raised starting in FY1982 in order to limit the increase in NPA's debt service and to avoid the decrease of its debt service ratio below the 2.0 level by FY1986. With the projected increase in cash generation and improve- ment in the management of NPA's working capital, NPA's contribution to future capital investment can be raised from 26% in FY1982 to 37% from FY1986 forward. A 17% contribution for FY1984 and a 40% contribution from NPA to its capital investment by FY1986 were agreed upon during negotiations and included in NPA's Financial Action Plan (Annex 5). Financing of Capital Investment, FY1982-FY1986 (in millions of CFAF) 1982 1984 1986 Capital investment (less force account) 2,961 11,959 6,559 New borrowing 1,151 5,571 4,121 Government contribution 1,040 4,025 30 NPA's contribution 770 2,363 2,408 NPA's contribution % of capital investment 26% 20% 37% 7.23 In order to prevent NPA's debt service from increasing exces- sively, NPA agreed during negotiations to present its five-year investment and financing plan for Bank review (para. 5.06). This invest- ment plan must include future acquisitions and equipment to be utilized under leasing agreements. Furthermore, to ensure NPA's financial viabil- ity, NPA agreed during negotiations not to incur any debt or leasing commitments, without Bank's agreement, unless its debt service ratio for the previous fiscal year is greater than 1.8. In addition, NPA will not, - 34 - without prior consultation with the Bank, carry out any investment other than those listed in Part A of the investment plan except with respect to items not exceeding in the aggregate the equivalent of CFAF 300 million within a 12-month period. Rate of Return on Net Fixed Assets and Profitability 7.24 Under the projected traffic increase, the investment plan and financing policies outlined above, NPA's net result will notably improve and increase from FY1983 onward. It will reach a satisfactory level of CFAF 1,809 million in FY1984 and CFAF 2,218 million in FY1986. The corresponding rate of return on net revalued fixed assets will improve from a 3.7% value for FY1982 to 4.9% from FY1986. A 4.5% target rate of return on revalued net fixed assets from FY1983 to FY1985, and 5.5% from FY1986 onward was agreed upon during negotiations. VIII. AGREEMENTS AND RECOMMENDATIONS 8.01 The following agreements were reached during negotiations: (a) The Government and NPA agreed: (i) To consult with the Bank before finalizing any arrangements whereby a third party would participate in the ship repair yard activities (para 3.06); (ii) That NPA's revalued fixed assets will be incorporated in a separate set of financial statements to be presented to the Bank annually, and that related estimates be updated annually (para. 3.12); and (b) NPA agreed: (i) To submit to the Bank for review by March 31, 1984 a plan for future maintenance dredging (para. 1.02); (ii) To the Action Plan for Organizational Development, and to implement it in accordance with the agreed time schedule (paras. 3.03, 3.04, 3.07, 3.14 and 3.15); (iii) To continue to submit to the Bank audited financial statements within six months after the end of each fiscal year (para. 3.12); (iv) To make available to the Bank by September 30, 1983 for agreement, the results of the review of - 35 - the existing data processing system and the long- term plan for data processing as prepared by the consultant employed by NPA (para. 3.18); (v) Not to acquire container cranes except with justification acceptable to the Bank (para. 5.06). (vi) To submit to the Bank for comment by December 31, 1985 the report on the dredging study dealing with maintenance and capital dredging of the Port of Douala and the entrance channel (para. 5.06); (vii) To appoint consultants, on terms and conditions satisfactory to the Bank, for project implement- ation (paras. 5.13, 5.14); (viii) To the measures set out in the Financial Plan of Action and to implement these measures in accordance with the agreed time schedule (paras. 7.11, 7.17, 7.21-7.23); (ix) Not to incur any financial commitment (borrowing or leasing) during the project disbursement period, without the Bank's agreement if its debt coverage ratio--defined as cash generation divided by the debt service for the same year--has been below 1.8 for the preceding fiscal year (para. 7.23); (x) Not make investments other than those included in Part A of the investment plan in excess of CFAF 300 million within a 12-month period without prior consultation with the Bank (para. 7.23); and (xi) To adjust tariffs so that the rate of return on revalued net fixed assets will be about 4.5% from FY1983 to FY1985, and 5.5% from FY1986 onward (para. 7.24). 8.02 As conditions for disbursement of funds for data processing hardware and software as well as for fruit-handling equipment, NPA agreed to submit a long-term data processing plan satisfactory to the Bank (para. 3.18) and the Government and NPA agreed to give the Bank satisfactory assurances that the fruit-handling equipment will be used for the intended purpose (para. 5.16). Disbursements of funds for the third berth will be subject to confirmation, satisfactory to the Bank, that it remains economically justified (paras. 5.16 and 6.10). 8.03 The proposed project is suitable for a loan to NPA of US$22.5 million equivalent on standard Bank terms. - 36 - ANNEX I Page 1 CAMEROON THIRD DOUALA PORT PROJECT Past Bank Group Activities in the Transport Sector Over the past ten years, the Bank Group has loaned Cameroon nearly US$259 million for the transport sector: US$70.5 million for railway projects, US$26.5 million for port projects, and US$150.3 million for highway construction and maintenance projects, and US$11.0 million for a feeder road project. The transport sector represents the second largest share (43%) of the Bank's past commitments in the Cameroon, closely following the agriculture sector (44%). First Railway Project (Loan 687-CM, US$5.2 million, 1970) Track renewal and rehabilitation, new freight cars and spares, reconstruction of the Japoma Bridge, and consulting services for the Douala-Yaounde realignment were provided by this loan. Financial covenants were not met due to overestimates of potential productivity and traffic volumes, and underestimates of staff costs. The rolling stock, track and consulting services components were executed satisfactorily. The bridge reconstruction ran into technical difficulties which had to be resolved under the Second Railway Project (Loan 1038-CM). First Highway Project (Loan 663/Credit 80-CM, US$19.9 million, 1970) The project included construction of the Ngaoundere-Garoua and the Tiko-Victoria Roads, feasibility studies and final engineering of the Garoua-Mora and Douala-Kekem Roads. Engineering problems with the drain- age design resulted in construction delays which led to cost overruns due to inflation. These were borne by the Government. The Project Performance Audit Report (No. 1574, April 29, 1977) for the project concluded that, in addition to reducing delays in project implementation, the Government should better coordinate transport activities. Improve- ments are being carried out partially under the Technical Assistance Project and the Third and Fourth Highway Projects. The transport sector study to be carried out under the Fifth Highway Project will also be designed to achieve this objective. First Douala Port Project (Credit 229-CM, US$1.5 million, 1971) The project provided for an industrial quay at Bonaberi and improved log handling facilities at Douala. Operating costs increased more rapidly than projected and target operating ratios were not met in addition to a number of other credit covenants. The physical execution of the project was satisfactorily completed in 1974 with some delays. The Project Performance Audit Report (No. 1604, May 24, 1977) for the - 37 - ANNEX I Page 2 project concluded that, despite a two-year delay in the completion of the works (due in part to Government procedures for prequalifications of tenderers and contract awards), the project has succeeded in removing serious bottlenecks in the Cameroon's port capacity. It also concluded that the project had contributed significantly to the definition of a long-term port development strategy, including improvements in the institutions concerned and in the financial situation (even though the covenanted financial objectives were not fully achieved). Second Highway Project (Loan 935/Credit 429-CM, US$48 million, 1974) The project covered the construction of three roads to paved standards: (a) Pont du Noun (Bafoussam)-Foumban Road (50 km); (b) Figuil-Mora section (163 km) of the Garoua-Mora Road; and (c) Douala- Kekem Road, a road maintenance study and technical assistance. The road maintenance study and reconnaissance study of forest evacuation roads were completed in May and December 1978, respectively. The roads were completed satisfactorily by July 1978 with the exception of the Garoua- Figuil Road (95 km) which the Government agreed to postpone. The cost of the project doubled due to inflation in 1973/74. A supplementary credit of US$15.0 million was approved in March 1976 to help alleviate the burden imposed on the Government by the project's cost overrun. Second Railway Project (Loan 1038-CM, US$16.0 million, 1974) Additional rolling stock and equipment, partial financing of the reconstruction of the Japoma Bridge, track renewal and consulting services were included under this project. Difficulties at the bridge site have been resolved but due to recession of the timber market, finan- cial targets were not met. Exchange depreciation has necessitated sup- plementary financing for part of the equipment and the consulting services under the Third Railway Project. Third Railway Project (Credit S-4 CM, US$2.3 million, 1976) The project included a feasibility study and detailed engineer- ing for the Douala Station and marshalling yard, as well as financing for part of the equipment and the consulting services from the Second Railway Project. The feasibility study, detailed engineering for the new station, and design study for the running shed and maintenance facilities were completed satisfactorily. Additional technical assistance is needed to fully implement the consultants' recommendations. This engineering credit has been refinanced under the Fourth Railway Project. The Project Performance Audit Report on the Second and Third Railway Projects (No. 3056, June 30, 1980) concluded that the projects' purpose was largely achieved but that the re-estimated economic rate of return is 10% against 13% estimated at appraisal due to shorter useful life of track, renewal works and lower than expected productivity of rolling stock. Compliance was met on most of the loan covenants, but the financial targets were not fully met because of rapidly rising costs and lower than expected traffic. - 38- ANNEXI Page 3 Second Douala Port Project (Loan 1321/Credit 657-CM, US$25.0 million, 1976) The principal components of the project are: a new fishing port and ship repair facility upstream from the existing port, a new log port and two container and one Ro/Ro berths downstream with scope for future expansion, and channel dredging. Construction was started in December 1976 and completed in 1982. The higher total cost for the project was covered by financing from NPA and the Government. The loan and the credit have been fully disbursed. The only remaining work will be to complete the dredging of the entrance channel. Maintenance dredging will be quantified only after the channel dredging is finished, and the channel hydraulics, suspended materials and density currents reach a state of equilibrium. The level of siltation may be higher than expected at appraisal which may increase maintenance dredging costs. At present consultants are studying the situation. First Technical Cooperation Project (Credit 673-CM, US$4.5 million., 1977) The project consists of advisory consultants' services to the Ministries of Economic Affairs and Planning, Agriculture, Transport, Equipment, Energy and Mining for investment planning, policy analysis and project processing. In the transport sector the project provided one economist/planner in the MOT and a second economist/planner in MINEP who have finished their assignments. First Feeder Road Project (Loan 1494-CM/Credit 749-CM, US$11.1 million, 1977) The project includes establishing a Central Feeder Roads Unit within the Department of Highways and a four-year program of construc- tion, improvement, rehabilitation and maintenance of about 2,000 km of feeder roads, including equipment purchase and operation, office and workshop construction and staff training in equipment operation and labor-intensive methods. The project's implementation is behind schedule because the organization in charge of the feeder roads is understaffed and because of shortages of local funds. The Government has submitted a satisfactory modified program for the execution of the project, reflecting the considerable increase in construction costs of the feeder roads. Third Highway Project (Loan 1515-CM, US$16.5 million, 1978) The main component of the project, the construction of the Garoua-Figuil Road to paved standard, was completed in 1979. Technical assistance to the MOT helped carry out an origin-destination survey with the first phase having been completed in September/October 1980 and the final phase in mid-1981 and also provided a transport advisor. A US$5.6 million cost overrun, mainly due to exchange rate fluctuations, has been covered by the Government. The Project Completion Report for the Second and Third Highway Projects (July 17, 1980) concluded that the impact of the substantial increase in project cost on the economic benefits was considerably expiated by a larger than expected increase in traffic using the roads. The re-estimated rates of return for the two projects were - 39 - ANNEX 1 Page 4 about the same as expected during appraisal (20%). The Project Completion Report also noted that progress in developing transport- related institutions has been slow compared with considerable progress made in upgrading the land transport system over the last decade. Fourth Highway Project (Loan 1723/Credit 926-CM, US$48.0 million, 1979) The project includes a training program for staff and workers for road maintenance, maintenance of about 17,000 km of roads and rehabilitation of 1,700 km through force account and domestic con- tractors, technical assistance to the domestic construction industry, two permanent weighing stations, and pre-investment studies for the Fifth Highway Project and forestry evacuation roads. Implementation of the project although delayed by about one year is satisfactory. Fourth Railway Project (Loan 1734/Credit 936-CM, US$47.0 million, 1979) The project includes construction of the marshalling yard, track and rolling stock, civil works, training equipment, consulting services and refinancing of Credit S-4 CM. The project became effective January 1980. Civil works at Douala Station are progressing satisfactorily although the final completion could be delayed by about 12 months due to unfavorable weather and unexpectedly poor soil conditions. Workshop modernization and some equipment procurement have also been delayed due to the late awarding of contracts. Implementation of the consultants' proposed improvements of administrative and managerial functions are progressing satisfactorily, although the retirement of the experienced Deputy Director-General has weakened the role of management. Fifth Highway Project (Loan 2180-CM, US$70.0 million, 1982) The project consists of: (i) the construction of the Edea- Yaounde Road (181 km) and the construction of new buildings for the National Civil Works Laboratory; (ii) consultants' services to supervise the road construction works, to prepare a national transport survey and to evaluate the paved road network; and (iii) technical assistance to the Ministry of Equipment, the Ministry of Transportation and to the laboratory. Because of administrative delays the period for making the loan effective has been postponed until January 25, 1983. However, the contractors and the supervising consultants for the road works have been selected, and the technical assistance to the Ministry of Equipment has started. Cofinancing for the road construction works is provided by the Kuwait Fund, Islamic Bank and Abu Dhabi Fund; the Governments of Canada and the Netherlands and private banks in the Netherlands to a total of US$91.5 million. - 40 - ANNEX 2 Page 1 CAMEROON THIRD DOUALA PORT PROJECT The Transport System Road Network and Road Transport 1. Cameroon, with about 65,000 km of roads, has an extensive net- work judging from the 0.14 km per km2 road density which compares favor- ably with neighboring countries. 1/ However, paved roads account for only 4% of the total network and are concentrated around Douala, Yaounde and Garoua where the network is most developed. 2/ Elsewhere, large parts of the country are still isolated or served by the most rudimentary infrastructure. Beside the paved roads, all weather accessibility on the classified network, which totals about 32,800 km, is possible to some extent on the engineered national gravel roads. The rest of the classi- fied network provides mainly dry season access. The unclassified network consists mainly of non-engineered seasonal tracks which are generally in poor condition and serve limited traffic. The evolution of the network is shown in the following table using the functional classification system adopted in March 1979: % Average 1972 1976 1980 Annual Growth (km) (km) (km) 1972-1980 Classified Network - Paved Roads 1,400 2,000 2,400 7.0 - Gravel and Earth Roads 19,500 24,300 30,400 5.7 National 1,000 2,000 4,200 19.6 Provincial 2,300 2,800 5,900 12.5 Departmental 2,200 5,700 6,100 13.6 Rural 14,000 14,800 14,200 -- - Total 20,900 26,300 32,800 5.8 Unclassified Network - Earth Tracks 22,000 28,000 32,000 4.8 GRAND TOTAL 42,900 54,300 64,800 5.3 Source: Ministry of Equipment, November 1980. 1/ Nigeria = 0.16 km/km2, Chad = 0.02 km/km2, Gabon = 0.02 km/km2 Congo = 0.03 km/km2 and CAR = 0.04 km/km2 2/ However, the density of paved roads is four times less in Cameroon (0.005 km/km2) than in Nigeria (0.02 km/km2). - 41 - ANNEX 2 Page 2 2. The condition of the network varies from good to poor. The three dominant economic regions (northern, central and western) are con- nected by partly paved roads which frequently become impassable during the rains. Consequently, Yaounde in the central region may be isolated sometimes simultaneously from the agriculturally rich western highlands and from the Port of Douala, especially whenever the railroad is closed due to accidents, etc. Edea, located between the two cities, is an important industrial center and generates most of the country's electric power. Its economy depends on reliable access to Yaounde and Douala. The existing paved road between Douala and Edea (92 km) is in an advanced stage of deterioration and unmaintainable in its present condition. Construction of this section on a substantially shorter alignment started in 1980. The construction of the Edea-Yaounde section is therefore one of the Government's highest priorities and forms part of the proposed Fifth Highway Project. 3. The vehicle fleet is estimated at about 83,000 vehicles (exclud- ing two wheelers). The trend in registrations reflects in general the increasing level of economic activity in the country. Overall, annual registrations increased from under 2,000 in 1960 to about 16,000 in 1978. The average annual growth over the last 18 years has been around 13%. High growth for vans and trucks reflects demand for freight trans- portation and the growth in the consumption of diesel fuel. About 59% of the fleet consists of passenger cars and is located mostly in the urban areas. Vans account fox about 18% of the fleet while the rest (23%) consists of heavy vehicles. 4. The road transport industry is competitive and characterized mainly by many local firms owning one or a few trucks. Although the industry suffers from financial instability, it provides basic services and in general is growing in line with domestic demand. 5. Most freight requiring special handling is transported by either the larger trading houses hauling on own account or specialized firms. Parastatal companies such as SODE-COTON and Cameroon Development Corporation mainly haul on own account and operate sizable fleets of their own. Timber and petroleum are generally transported by the con- cessionaires although specialized domestic firms have entered the market. International freight to Chad and CAR is handled by domestic and foreign firms. Cameroon's bilateral quota for Chad is handled through affiliates of SOGETRANS. The increasing CAR traffic is less attractive to Cameroonian haulers, however, because of the poor road (500 km) between the border and Bangui. 6. As discussed in greater detail in the appraisal report for the Fifth Highway Project (Report no. 3473-CM), consumers in the Cameroon pay significantly more than the opportunity cost of either gasoline or diesel and the Government does not subsidize road users. Table 1 (reproduction of Table 2.4 of Report 3473-CM) provides information on retail prices of motor fuel in Cameroon while Table 2 (reproduction of Table 2.5) compares domestic retail and international petroleum product prices. - 42 - ANNEX 2 Page 3 Railways 7. The railway, whose main lines are the Trans-Cameroon line (Douala-Ngaoundere, 913 km) and the western line (Douala-Nkongsamba, 160 km), are operated by the National Railroad Company of Cameroon (Regie Nationale des Chemins de Fer du Cameroon - REGIFERCAM), an autonomous state agency which is under the responsibility of the Ministry of Transport. The principal commodities carried are timber, petroleum products, alumina and other material for ALUCAM, construction materials, cotton, cocoa and manufactured imports. Between FYs 1973-1980, freight traffic increased steadily at an average annual rate of 8.5% in ton-km and 3.7% in tons carried. Freight traffic in FY1981 increased by 15% in ton-km. In FY1981 freight traffic exceeded 1.5 million tons over an average distance of 441 km, or 663 million ton-km. Over 99% of the tonnage was carried on the Trans-Cameroon line. Passenger traffic, on the other hand, showed a slow but steady decline in the same period and fell from over 1.7 million passengers in FY1973 to 1.2 million in FY1981. 8. REGIFERCAM is operating at a loss but steps are being taken to solve operational, managerial and financial problems. External donors are financing the track realignment between Douala and Yaounde, the oldest and most heavily used section, as well as the purchase of locomo- tives and rolling stock. The ongoing Fourth Railway Project provides, inter alia, a mechanism aimed at improving REGIFERCAM's operations, marketing, tariffs and finances. A Government committee recently sub- mitted recommendations to improve the financial position of REGIFERCAM; these recommendations are still under consideration by the Government and their scope are therefore not yet known. Ports, Shipping and Inland Waterways 9. Douala is the principal port, handling about 90% of Cameroon's foreign and transit trade. It is discussed in Chapter III and further in Annex 3. 10. Kribi is a sheltered lighterage and shallow quay port of 280 m located in the south, with traffic in agricultural and log exports, handling 7,530 tons of imports and 207,000 tons of exports, mainly log from nearby areas, in 1980. It has a 7,000 m2 log park and 11,000 m2 storage area, of which 8,800 m2 are covered. Victoria, a small port with a finger quay of about 80 m, is located in the rocky bay of Ambas, in the western region. It has 13,200 m2 of storage areas, of which 3,500 m2 are covered, and caters particularly to cocoa and rubber exports. Tiko is located in a sheltered area in the western region with limited import- ance, catering particularly to banana exports. It is a small port with a 2 main wharf about 135 m, a lighterage wharf about 120 m and 3,500 m of covered storage areas. In 1980, 2,178 tons of imports and 24,820 tons of exports were handled through these two ports. Garoua Port on the Benoue River in northern Cameroon is a seasonable port and has been of limited importance since the Nigerian civil war. The uay at Garoua is 256 m with 125,000 m2 storage area, of which 4,800 m are covered. The total imports/exports handled in 1980 was 250 tons. - 43 - ANNEX 2 Page 4 11. Cameroon Shipping Lines S.A. (CAMSHIP), formed in 1975, has developed fairly successfully. The Government, the National Investment Company, and UNIMAR (a West German shipping company) have equal shares in CAMSHIP. The fleets' six ships total about 75,000 deadweight tons (dwt). Additionally, CAMSHIP has a chartered banana boat of 4,100 dwt. The tonnage carried increased by 15% in 1979 and 23% in 1980 to reach 434,000 tons, of which 334,000 was break-bulk and about 100,000 tons containerized. In 1979, CAMSHIP carried about 32% of the export tonnage (excluding bananas and other fruit) and around 29% of the import tonnage (excluding bulk cargo) between Douala and Northern Europe. Since early 1979 regular operations to Western Mediterranean ports have started. CAMSHIP had a small deficit in FY1979. The results for FY1980 were not yet available at the time of the appraisal mission. 12. CAKSHIP receives favorable treatment from the Shippers' Council of Cameroon which controls cargo allocations. Since its reorganization in 1978, the Council has substantial financial resources at its disposal. It receives 0.3% of the value (f.o.b.) of all trade and has started to use these funds to study the production, marketing and trans- port of major commodities. The first of such studies, on coffee, has been published. Air Transport 13. Air transport in Cameroon comprises Cameroon Airlines (CAMAIR) which operates scheduled passenger and cargo flights and charters, and the Armed Forces and small companies that operate charters and carry freight. CAMAIR was formed in June 1971 and is owned 75% by the Govern- ment and 25% by Air France with which it has reciprocal marketing arrangements. It operates domestic services (which are generally unpro- fitable) between Douala, Yaounde and 12 other domestic airports, and profitable international services between Douala, West and East Africa, and Europe. In FY1980, CAMAIR transported 499,834 passengers, an increase of 19% over FY1979. Domestic traffic accounted for about 76% of the passengers carried, regional traffic for 14% and long distance flights for 10%. Freight traffic amounted to 10,000 tons. - 44 - ANNEX 3 Page 1 CAMEROON THIRD DOUALA PORT PROJECT Existing Port Facilities and Operations at Douala Location 1. Douala Port, which lies on the Wouri Estuary some 30 km from the ocean, is the major port of Cameroon. The port provides very good shelter to seagoing ships; however, when exposed to high winds and cur- rents it is difficult to berth/unberth large vessels. This situation will be improved under the project with procurement of a more powerful tug. The Channel 2. The entrance channel extends 30 km from the ocean; under the Second Port Project it was dredged to 7.5 m depth below lowest low water (LLWL), and at the outer bar NPA is continuing to dredge down to 9.5 m; this work is expected to be completed by the end of the current year. Minimum tidal range is about 1.7 m. Maximum ship size that can enter the channel at all tides is limited to 20,000 dwt. The channel is provided with a sufficient number of buoys which however need to be upgraded and electronic positioning equipment is needed; both will be done under the project. Port Facilities1/ 3. The Port lies largely on the Douala side of the estuary with a cement clinker unloading wharf and a banana loading wharf on the Bonaberi side. A road and rail bridge connects both sides. Port facilities on the Douala side consist of a fishing basin, a 2,200 m long marginal wharf and a log basin. The fishing basin accommodates two floating docks and 660 m long marginal wharfs for fishing vessels and oil exploration boats. In the basin, average low water depth is 5.5 m. Along the entrance channel, at the continuous marginal wharfs (normally fifteen) of varying lengths there are: one mineral wharf, two container wharfs, one ro/ro wharf and the remainder are general cargo wharfs. Low water depth along these wharfs varies between 11.5 m and 8.5 m. The log port basin has three ramps for rolling logs into the water and a 150 m long marginal wharf for loading non-floating logs into barges. The basin during the recent expansion of the Douala Port was dredged to 9.5 m depth to provide sand for the land reclamation component. Petroleum imports are handled at mid-channel berth through a pipeline. All wharfs in Douala are built of anchored steel sheet piling with cathodic protection. The Port of Douala has a total storage area of 106 ha, of which 6 ha are covered and 100 ha are open. Of the open storage, 22.6 ha are used for containers, 1/ For existing minor ports see Annex2, para. 10. -45 - ANNEX 3 Page 2 20 ha for logs and the rest for bulk alumina and general cargo. Of the storage area reserved for containers, 1.8 ha is used for prestowing, 8.4 ha for storage of fuR boxes, 1.2 ha for storage of empty boxes and 1.2 ha for refrigerated boxes. In the log port, 10 ha is reserved for sorting out logs and 10 ha for logs already marketed and designated for transportation to specific destinations. In addition, the Port of Douala has an ice-making plant of 100 t daily capacity with three storage silos of 100 t each equipped for loading trucks by gravity, and a 16,500 m cold storage for fish. 4. The dockyard operated by NPA is equipped with a 100 ton slipway and various covered workshops. There are two floating docks (a 1,200-ton and a 800-ton), one floating crane, one cutter suction dredger and one trailer suction dredger. In addition NPA has a number of launches, pilot boats and other work boats. Port Operations 5. NPA is responsible for conservancy and provision of navigational aids, pilotage, operation of a dockyard for repairs of its work boats and other small craft, maintenance dredging in the Port and at the entrance channel, operation of the ice plant and refrigerated storage for fish and shrimp, and maintenance of port infrastructure. General cargo and ro/ro are handled by five independent stevedoring companies: SOCOPAO, CAMATRANS, SOAM, TRANSCAP and SOCOMAC. In addition to their privately- owned warehouses, these companies lease sheds and open storage from NPA. The container terminal is operated by a consortium composed of the five stevedoring companies. Log traffic is handled by two autonomous companies with their own log-carrying equipment ashore, as well as tugs and barges. In these two companies NPA is a minor shareholder. Alumina and its products are loaded/unloaded from ships by ALUCAM and cement clinker by CIMENCAM; both are partly owned by the state. 6. There are no restrictions on night or holiday work and opera- tions continue for 12 hours per day on average. The present arrangements for general cargo handling are reasonably satisfactory and result in traffic throughput similar to other reasonably well-functioning West African Ports, of about 1,000 tons of general cargo per meter of wharf, and 5 containers per berth per hour. In contrast, banana cargoes at Bonaberi are not handled properly or at a fast enough rate; old mobile ladders are used and due to an adjacent cement plant, the environment is dusty. Maximum loading rates obtainable are under 15 tons/hour per mobile ladder; these ladders often break and cause heavy damage to the perishable fruit. With the new wharf located in Douala in a dust-free environment and the conveyor belt system financed under the project, loading rates per conveyor should increase up to 50 tons/hour and damage to the cargo would be minimized. CAMEROON THIRD DOUALA PORT PROJECT Douala Port - Total Import and Export Traffic, CY1969-1980 ('000 tons) Percent p.a. Increase 1969 1973 1974 1975 1976 1977 1978 1979 1980 1969-1980 1969-1975 1975-1980 IMPORTS Petroleum Products 256 350 340 362 435 487 552 622 686 9.4 5.9 13.7 Clinker 23 138 210 195 176 243 330 392 415 30.1 42.9 16.2 Food and Beverage 117 163 160 174 199 276 315 300 332 10.0 6.9 13.8 Equipment 68 77 84 108 105 144 155 222 218 11.2 8.0 15.1 Fertilizer 51 44 35 59 41 54 102 87 87 5.0 2.5 8.0 Alumina 88 91 95 106 95 79 82 84 85 (0.4) 3.1 (3.7) Cement 106 10 18 6 5 10 23 40 37 (8.5) ( ) 43.8 Gypsum n.a. 18 9 6 11 10 21 11 33 n.a. n.a. 40.6 Other Imports 216 256 280 287 293 387 424 460 490 7.7 4.9 11.3 Total Imports 925 1,147 1,231 1,304 1,360 1,690 2,004 2,218 2,383 9.0 5.9 12.8 of which Specialized Bulk 367 597 645 670 717 819 985 1,109 1,219 11.5 10.6 12.7 > General Cargo 558 550 586 634 643 871 1,019 1,109 1,164 6.9 2.2 13.0 EXPORTS Logs 298 403 319 214 329 334 324 362 385 2.3 (5.4) 12.5 Sawn Timber 53 76 84 70 81 69 75 92 121 7.8 4.8 11.6 Subtotal Timber 351 479 403 284 410 403 399 454 506 3.4 (3.5) 12.2 Coffee 68 84 107 98 103 73 93 110 104 3.9 6.3 1.2 Cotton and Cotton Oil 31 51 44 42 63 70 66 71 79 8.9 5.2 13.5 Cocoa and Products 78 74 78 70 59 49 58 61 75 (0.4) (1.9) 1.4 Bananas 35 69 75 82 87 88 84 85 64 5.7 15.2 (5.0) Aluminum 52 31 32 27 22 29 21 47 12 (12.5) (10.7) (15.0) Other Exports 113 102 119 93 92 86 87 134 125 0.9 (3.4) 6.1 Total Exports 728 890 858 696 836 798 808 893 965 2.6 (0.8) 6.8 of which Specialized Bulk 52 31 32 27 22 29 21 47 12 (12.5) (10.7) (15.0) General Cargo 676 859 826 669 814 769 787 846 953 3.2 (0.2) 7.3 Total Traffic 1,653 2,037 2,089 2,000 2,196 2,488 2,812 3,111 3,348 6.6 3.2 10.9 c of which Specialized Bulk 419 628 677 697 739 848 1,006 1,156 1,231 10.3 8.9 12.1 ex General Cargo 1,234 1,409 1,412 1,303 1,457 1,640 1,806 1,955 2,117 5.0 1.0 10.1 1/ Actual traffic data for 1981 are indicated in Table 6.1. Source: Compiled on the basis of information made available by NPA. - 47 - ANNEX 4 Table 5.1 CAMEROON THIRD DOUALA PORT PROJECT NPA Five-Year Investment Plan, FY1982-1986 (in 1981 CFAF billions) FY1982 FY1983 FY1984 FY1985 FY1986 TOTAL List A Projects Technically and Economically Justified Oil exploration area 1.00 4.00 4.00 9.00 Rehabilitation Berth 1 and 2 0.90 0.90 NPA-CNCC Headquarter 0.30 0.50 0.50 1.30 Storage area for landlocked countries 0.80 1.80 2.60 Fruit terminal, con- tainer and gen7ral cargo berths 1- 1.73 1.73 1.74 5.20 Fruit Handling Equipment -Y 0.11 0.11 0.12 0.34 Tugboat - 0.50 0.60 1.10 Access Program - 0.85 0.85 0.86 2.56 Small crafts 0.12 0.12 0.15 0.39 Replacement transportation equipment 0.05 0.05 0.10 Repair works 0.50 0.50 0.50 0.50 2.00 Data processingk1/ 2/ 0.20 0.20 0.21 0.61 Studies 0.02 0.03 1/ 0.35 1! 0.35 Yi 0.35 1.10 2.72 7.53 8.91 4.97 3.07 27.21 List B Projects Subjects to Further Studies Dredging Equipment 0.40 0.40 0.30 1.10 /1 Included in the proposed Third Douala Port Project. /2 Tentative estimate. Subject to further studies. Source: NPA and Bank staff. 02/83 - 48 - ANNEX 4 Table 5.2 CAMEROON THIRD DOUALA PORT PROJECT Project Cost Summary US$ million CFAF millions equivalent1/ % of Foreign Local Total Foreign Local Total Cost 1. Civil Works a. Three berths & dredging 2,278 1,326 3,604 6.7 3.9 10.6 b. Warehouse 306 204 510 .9 .6 1.5 c. Railroad & services 272 136 408 .8 .4 1.2 Subtotal - Civil Works 2,856 1,666 4,522 8.4 4.9 13.3 Contingencies Physical 442 238 680 1.3 .7 2.0 Price 918 1,258 2,176 2.7 3.7 6.4 Subtotal - Cont. 1,360 1,496 2.856 4.0 4.4 8.4 Total - Civil Works 4,216 3,162 7,378 12.4 9.3 21.7 67 2. Equipment a. Fruit handling equipment 272 34 306 .8 .1 .9 b. Tugboat 1,020 -- 1,020 3.0 -- 3.0 C. Elec. Pos. System 170 -- 170 .5 -- .5 d. Bouyage 68 -- 68 .2 .2 Subtotal - Equipment 1,530 34 1,564 4.5 .1 4.6 Contingencies Physical 136 -- 136 .4 -- .4 Price 340 -- 340 1.0 -- 1.0 Subtotal - Cont. 476 -- 476 1.4 -- 1.4 Total - Equipment 2,006 34 2,040 5.9 .1 6.00 18 3. Data Processing a. Hardware 272 -- 272 0.8 -- 0.8 b. Technical Assistance 272 68 340 0.8 0.2 1.0 Subtotal 544 68 612 1.6 0.2 1.8 Contingencies Physical 34 -- 34 .1 -- .1 Price 102 -- 102 .3 -- .3 Subtotal - Cont. 136 -- 136 .4 -- .4 Total - Computer 680 68 748 2.0 .2 2.2 7 4. Consultants 544 238 782 1.6 .7 2.3 Contingencies Price 136 68 204 .4 .2 .6 Total - Consultants 680 306 986 2.0 .9 2.9 7 GRAND TOTAL 7,582 3,570 11,152 22.3 10.5 32.8 Front-end fee on Bank Loan 68 -- 68 .2 -- .2 1 Total Financing Required 7,650 3,570 11,220 22.5 10.5 33.0 100 01/83 CAMEROON THIRD DOUALA PORT PROJECT Douala Port - Traffic Forecasts, CY1981-1990 ('000 tons) Percent p.a. ----Actual---- ----------------------------------Forecast------------------------------------- Increase 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1980-1990 IMPORTS Petroleum Products 686 733 828 911 1,000 1,103 1,191 1,286 1,389 1,500 1,600 Clinker 415 450 502 552 607 668 735 808 888 977 1,075 Food and Beverage 332 366 399 445 492 544 591 640 693 748 805 Equipment 218 197 325 378 433 488 536 585 632 682 736 Fertilizer 87 59 96 101 106 112 115 118 121 124 127 Alumina 85 140 140 150 161 169 203 243 280 322 370 Cement 37 50 53 56 59 61 63 65 67 69 71 Other Bulk Import 25 58 81 93 106 120 134 150 167 185 205 Gypsum 33 16 40 43 48 53 58 64 71 78 85 Other Imports 465 539 604 676 757 848 950 1,064 1,192 1,335 1,495 Total Imports 2,383 2,608 3,068 3,405 3,769 4,166 4,576 5,023 5,500 6,020 6,569 10.7 of which General Cargo 1,164 1,211 1,477 1,656 1,847 2,053 2,255 2,472 2,705 2,958 3,234 11.0 EXPORTS Logs 385 303 369 400 408 416 424 433 442 450 460 Sawn Timber 121 118 121 148 157 166 175 184 192 200 210 Subtotal Timber 506 421 490 548 565 582 599 617 634 650 670 Coffee 104 110 122 130 138 142 145 148 150 152 154 Cotton 60 52 69 74 79 84 88 94 100 107 114 Cocoa and Products 75 81 81 84 86 88 90 92 94 96 98 Fruit 64 58 60 65 70 70 70 70 70 70 70 Aluminum 12 39 56 57 58 59 54 52 50 48 46 Paper Mass -- -- 60 70 70 70 70 70 70 70 70 Other Exports 144 165 172 178 186 193 201 209 217 226 235 Total Exports 965 926 1,110 1,206 1,252 1,288 1,317 1,352 1,385 1,419 1,457 4.2 of which General Cargo-! 837 781 846 900 920 951 983 1,014 1,044 1,076 1,111 2.9 Total Traffic 3,348 3,534 4,178 4,611 5,021 5,454 5,893 6,375 6,885 7,439 8,026 9.1 of which General Cargo 2,001 1,992 2,323 2,556 2,767 3,004 3,238 3,486 3,749 4,034 4,345 8.1 /1 In 1980, Including 70% of log exports as general cargo and 30% as bulk with the share of log general cargo declining to 50% by 1984. Excluding, in addition, aluminum exports and from 1982 paper mass exports over CELLUCAM berth. The general cargo export volume and the total general cargo volume in 1980 was lower than the figures in Annex 4, Table 4.1 due to the exclusion of part of the log traffic from the general cargo categories in this table. Source: Compiled on the basis of information made available by NPA and Bank staff estimates. 08/82 - 50 - ANNEX 4 Table 6.2 CAMEROON THIRD DOUALA PORT PROJECT Cost and Benefit Streams for Container and Multi-Purpose Berths, CY1983-2004 (in US$ '000s) Benefits General Higher Return Maintenance Reefer Cargo on Bananas Capital and Operating Service Waiting from Reduced Costs Costs Time Costs Time Costs Damage 1983 3,000 1984 4,600 1985 4,600 - - 1986 4,400 600 2631/ 2,1311 - 1987 700 600 546 4,635 8002/ 1988 - 900 546 8,632 800 1989-2004 - 900 515 10,495 800 1/ Assuming half year of benefits -n y. 2/ Assuming a delay in benefits accrual. Source: Bank staff estimates. 01/83 - 51 - ANNEX 4 Table 6.3 CAMEROON THIRD DOUALA PORT PROJECT ERR Under Different Assumptions ERR (%) A. Container and Multi-purpose Berths with Shed and Cargo Handling Equipment 1. Best Estimate 1' 34 (1) 10% increase in project cost 32 (ii) 10% reduction in benefits 31 (iii) Both 29 (iv) 20% increase in project cost 29 (v) 20% reduction in benefits 26 (vi) Both 24 (vii) Benefits lagged by one year 28 (viii) Benefits lagged by two years 23 (ix) Excluding benefits from reduced damage to fruit and from reduced reefer service costs. 29 2. Conservative Traffic Assumption (10% lower) 26 (a) Excluding benefits from reduced damage to fruit and from reduced reefer service costs. 20 3. Conservative General Cargo Productivity (5% higher) 26 (b) Excluding benefits from reduced damage to fruit and from reduced reefer service costs. 22 B. TugBoat 182) C. Combined including Technical Assistance and Data Processing 27 (i) 10% increase in project costs 25 (ii) 10% reduction in benefits 25 (iii) Both 23 (iv) 20% increase in project costs 23 (v) 20% reduction in benefits 22 (vi) Both 18 (vii) Benefits lagged by one year 22 (viii) Benefits lagged by two years 19 (viii) Excluding benefits from reduced damage to fruit and from reduced reefer service costs. 24 I/ Based on traffic forecasts in Table 6.1, capital and maintenance costs in Table 6.2 and other factors explained in Chapter VI. 2/ As estimated by NPA. As explained in paras. 6.09 and 6.11 this is a very conservative estimate. Source: Bank staff. 01/83 - 52 - ANNEX 4 Table 7.1 CAWfROON THIRD DOUALA PORT PROJECT NPA Consolidated Balance Sheets, FY1975-1982 (in millions of CFAF) 06/30/75 06/30/76 06/30/77 06/30/78 06/30/79 06/30/80 06/30/81 06/30/82 A.s of June 30 (FY75) (FY76) (FY77) (FY78) (FY79) (FY80) (FY81) (FY82) (Provisional) SASSETS Fixed Assets Gross Value 3,839 11,252 14,702 24,067 32,582 42,610 51,533 55,266 - Depreciation -(1,215) -(1,767) -(2,514) -(3,247) -(3,846) -(4,710) -(6,251) -(8,380) Net Value 2,624 9,485 12,188 20,820 28,735 37,900 45,272 46,886 Work In Progress 6,653 162 103 274 745 828 -- -- Investments 28 28 28 47 57 227 443 443 Claims (more than one-year term) 18 18 10 12 53 55 55 55 Total Fixed Assets 9,323 9,693 12,329 21,153 29,590 39,010 45,780 47,384 Current Assets Stores 139 122 136 148 136 156 128 237 Prepaid Expenses 22 18 35 51 132 182 289 424 Receivables 369 613 825 1,233 1,648 2,273 2,475 2,767 Cash 1,352 882 804 381 626 675 342 95 Total Current Assets 1,882 1,635 1,800 1,813 2,542 3,286 3,234 3,523 -[ABILITIES Long-Term Liabilities Equity Capital 8,040 8,040 8,040 8,040 8,040 6,040 8,040 8,040 Retained Earnings & Subsidies 2,420 2,585 3,356 4,606 6,823 9,196 11,031 12,373 Total Equity 10,460 10,625 11,396 12,646 14,863 17,236 19,071 20,413 Long-Term Debt 361 365 803 9,502 15,104 23,267 25,219 25,700 Total Long-Term Liabilities 10,821 10,990 12,199 22,148 29,967 40,503 44,290 46,113 Current Liabilities Accrual Liabilities 179 60 13 22 455 566 389 438 Other Current Liabilities 205 278 1,915 798 1,711 1,227 4,335 4,356 Total Current Liabilities 384 338 1,928 820 2,166 1,793 4,724 4,794 Current Ratio (Current Assets/ 4.90 4.83 1.07 2.21 1.17 1.83 1.63 1.36 Current Liabilities) Debt/Equity Ratio (Long-Term Debt + .07 .07 .24 .81 1.16 1.45 1.32 1.26 Current Liabilities) : Equity Source: Compiled on the basis of information made available by NPA. C /83 - 53 - ANNEX 4 Tab le 7.2 CAW£ROON THIRD DOUALA PORT PROJECT Douala Port Balance Sheets, FY1975-1982 (in millions of CFAF) 06/30/75 06/30/76 06/30/77 06/30/78 06/30/79 06/30/80 06/30/81 06/30/82 As of June 30 (FY75) (FY76) (FY77) (FY78) (FY79) (FY80) (FY81) (FY82) (Provisional) ASSETS Fixed Assets Gross Value 8,916 10,084 13,458 22,738 31,256 41,201 49,021 52,906 - Depreciation -(1,038) -(1,515) -(2,162) -(2,797) -(3,304) -(4,093) -(5,606) -(7,646) Net Value 7,878 8,569 11,296 19,941 27,952 37,108 43,415 45,260 Work in Progress 408 112 82 274 744 827 753 600 investments 46 28 28 47 57 227 443 442 Claims (more than one-year term) - - - - 51 56 56 56 Total Fixed Assets 8,333 11 406 20,262 28,804 38,218 44 4 Current Assets Stores 97 87 97 101 110 114 92 194 Prepaid Expenses 21 17 36 52 126 176 282 406 Receivables 310 538 725 1,088 1,409 2,104 2,283 2,570 Cash 1,284 1,112 1,032 828 435 553 249 (317) Total Current Assets 1712 5 1,890 2 2,080 22 2, LIABILITIES Lon-Term Liabi ities EsuitU Capital 7,327 7,327 7,327 7,327 7,327 7,327 7,327 7,327 Retained Earnings & Subsidies 2,184 2,466 32 4,594 6,574 9,241 1 249 12865 Total ty 9,511 9,793 10,593 11,921 13,901 16,568 18,576 20 Long-Term Debt 360 365 803 9,502 15,104 2 25,219 2 Total Long-Term Liabilities 9,871 10,158 11,396 21,423 29,005 39,835 434795 45 892 Current Liabilities Accrual Liabilities 174 47 12 21 452 563 366 415 Other Current Liabilities - 258 1 8 87 766 3,412 2,904 Total Current Liabilities 174 305 1,900 908 118,79 9 778 Current Ratio (Current Assets/ 3.20 5.75 .99 2.27 1.10 2.21 .76 .86 Current Liabilities) Debt/Equity Ratio (Long-Tenn Debt + .05 .07 .25 .87 1.22 1.48 1.56 1.43 Current Liabilities) r Equity Source: Compiled from data made available by NPA. 03/83 - 54 - ANNEX 4 CAMEROON Table 7.3 SECOND DOUALA PORT PROJECT NATIONAL PORT AUTHORITY Consolidated Sources and Applications of Funds, FY1976-1982 (in millions of CFAF) Annual amounts FY1976 FY1977 FY1978 FY1979 FY1980 FY1981 FY1982 (Provisional) Long-Term Applications Capital Investment 922 3,383 9,562 9,763 10,283 8,421 3,803 Debt service Interest 2 43 151 465 1,067 1,045 1,262 Repayment - - - - - 521 749 Total long-term applications 924 3,426 9,713 10,228 11,350 9,987 5,814 Long-Term Source Cash generated from operations 739 1,226 1,317 779 2,084 2,871 3,870 Subsidies and grants 165 771 1,250 2,217 2,373 1,318 1.040 Long-term loans 370 438 8,699 5,603 8,163 2,473 1,151 Total long-term sources 1,274 2,435 11,166 8,599 12,620 6,662 6,061 Excess long-term sources/appls. 350 (991) 1,453 (1,629) 1,270 (3,325) 247 Increase in working capital (dec.) 820 (913) 1,876 (1,807) 1,219 (2,992) 481 Cash increase (dec.) (470) (78) (423) 178 51 (333) (234) Cumulative amounts Long-Term Applications Capital Investment 922 4,305 13,867 23,630 33,913 42,334 46,137 Debt service 2 45 196 661 1,728 3,294 5,226 Total long-term applications 924 4,350 14,063 24,291 35,641 45,628 51,363 Long-Term Sources Cash generated from operations 739 1,965 3,282 4,061 6,145 9,016 12,886 Subsidies and grants 165 936 2,186 4,403 6,776 8,094 9,134 Long-term loans 370 808 9,507 15,110 23,273 25,746 26,897 Total long-term sources 1,274 3,709 14,975 23,574 36,194 42,856 48,917 Excess long-term sources/appis. 350 (641) (812) (717) (553) (2,772) (2,525) increase in working capital (dec.) 820 (93) 1,783 (75) 1,295 (1,697) (1,216) Cash increase (decrease) (470) (548) (971) (793) (742) (1,075) (1,309) Source: Compiled from data made available by NPA. 01/83 - 55 - ANNEX 4 Table 7.4 CAfEROON THIRD DOUALA PORT PROJECT Douala Port Sources and Applications of Funds, FY1975-1982 (in millions of CFAF) FY1975 FY1976 FY1977 FY1978 FY1979 FY1980 FY1981 FY1982 (Provisional) Applications (long-term) Increase in fixed assets.L-I 922 3,383 9,562 9,763 10,203 7,962 3,803 Service of the debt - 4 142 464 1,065 1,586 2,011 Total long-term applications 922 3,387 9,704 10,227 11,268 9,548 5,814 Sources (long-term) Cash generated from operations (less works on force account) /2 635 949 868 1,058 1,628 2,229 3,226 Financing of works on force account through operations 93 116 485 626 450 752 842 Grants and subsidies 174 531 856 1,980 2,667 1,078 1,040 Increase In long-term debt 365 438 8,699 5,603 8,163 2,473 1,151 Other long-term sources 4 - - - - - - Tofal long-term sources 1,271 2,034 10,908 9,267 12,908 6,532 6,259 Excess of long-term sources over long-term applications of funds 349 (1,353) 1,204 (960) 1,640 (3,016) 406 Increase in working capital 521 (1,273) 1,000 (567) 1,522 (2,712) 432 Cash increase (172) (80) (204) (393) 118 (304) (26) Cash at the end of the period 1,284 1,112 1,032 828 435 553 249 (317) /1 Including works on force account: CFAF 93 million in 1976; 116 million in 1977; 458 million in 1978; 626 million in 1979; 450 million in 1980. /2 Works on force account are accounted for as revenue, but as they do not Involve a cash Inflow, strictly speaking, they should be subtracted from cash generated from operations. Source: Compiled from data made available by NPA. 01/83 - 56 - ANNEX 4 Table 7.5 CAMEROON THIRD DOUALA PORT PROJECT NPA Consolidated Incone Statements, FY1975-1982 (in millions of CFAF) FY1975 FY1976 FY1977 FY1978 FY1979 FY1980 FY1981 FY1982 (Provisional) Charges against ships 497 622 810 1,068 1,276 1,604 1,801 2,174 Charges against merchandise 702 849 1,197 1,218 1,431 1,546 2,150 2,716 Rentals 299 342 450 432 578 1,225 1,884 2,755 Miscellaneous 456 367 690 866/1 1,235/2 947/3 1,000/4 1,136 Total operating revenue 1,954 2,180 3,147 3,584 4,520 5,322 6,835 8,781 Staff Costs 693 835 1,024 1,182 1,438 1,782 1,843 2,315 Materials and Supplies 179 233 351 420 644 686 1,065 1,292 General Expenses 380 373 546 665 659 770 1,056 1,256 Total working expenditure 1,252 1,441 1,921 2,267 2,741 3,238 3,964 4,863 Cash generated from operations 702 739 _2 3,918 Depreciation 499 652 795 814 1,024 1,377 1,860 2,199 Net operating revenue 203 73 431 503 755 707 1,011 1,719 Interest on long-term debt 1 2 43 151 464 942 1,045 1,389 Net profit (loss) 202 71 388 352 291 (235) (34) 350 Working ratio .64 .66 .61 .63 .60 .61 .58 .55 Operating ratio .89 .96 .86 .85 .83 .87 .85 .80 Debt coverage ratio 9.1 3.8 2.2 1.83 1.87 Rate of return (%)/5 .7 3.9 3.0 2.9 2.1 2.- 3.7 Average value of net fixed assets 9,508 11,011 16,741 25,371 34,300 41,586 46,582 /1 Including CFAF 458 million works on force account. /2 Including CFAF 628 million works on force account and CFAF 136 million excess of depreciation on previous years. /3 Including CFAF 450 million works on force account. /4 Including CFAF 757 million works on force account. /5 Defined as net operating revenue/average value of net fixed assets. Source: Compiled from data made available by NPA. 02/83 - 57 - ANNEX 4 Table 7.6 CAMEROON THIRD DOUALA PORT PROJECT Douala Port Income Statements, FY1975-1982 (in millions of CFAF) FY1975 FY1976 FY1977 FY1978 FY1979 FY1980 FY1981 FY1982 (Provisional) Charges against ships 495 569 610 1,039 1,312 1,556 1,711 2,076 Charges against merchandise 659 849 1,195 1,081 1,213 1,456 2,045 2,599 Rentals 238 342 449 355 480 1,139 1,770 2,629 Miscellaneous 394 326 294 831 L 1,139 L 993 / 992 1 1,127 Total operating revenue 1,786 2,086 2,748 3,306 4,144 5,144 6,518 8,431 Staff Costs 585 835 1,026 1,017 1,264 1,593 1,628 2,062 Materials and Supplies 190 232 350 384 1,034 650 963 1,176 General Expenses 289 291 303 579 163 723 946 1,126 Total working expenditure 1,064 1,358 1,679 1,980 2,461 2,966 3,537 4,364 Cash generated from operations 722 728 1,069 1,326 1,684 2,078 2,981 4,068 Depreciation 434 620 796 702 893 1,297 1,774 2,112 Net operating revenue 288 108 273 624 791 781 1,207 1,956 Interest on long-term debt 1 - 4 142 464 1,065 1,045 1,341 Net profit (loss) 287 108 269 482 327 (284) 162 615 Working ratio .65 .65 .61 .60 .59 .59 .54 .52 Operating ratio .89 .95 .90 .81 .81 .84 .81 .77 Debt coverage ratio 9.1 3.8 2.2 1.90 1.49 Rate of return (%) 1.12 2.71 3.94 3.22 2.34 3.- 4.3 Average value of net fixed assets 8,521 10,057 15,834 24,533 33,317 41,387 45,512 /1 Including CFAF 458 million works on force account. /2 including CFAF 628 million works on force account and CFAF 136 million excess of depreciation on previous years. /3 including CFAF 450 million works on force account. /4 Including CFAF 752 million works on force account. /5 Defined as net operating revenue/average value of net fixed assets. Source: Complied from data made available by NPA. 02/83 - 58 - ANNEX 4 Table 7.7 CAMERDON THIRD DOUALA POR1 PROJECT NATIONAL PORT AUTHORITY PROJECTED SOURCES AND APPLICAT IONS OF FUNDS FY 1981-1991 (IN MILLIONS OF CFAF) 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 LONG TERM SOURCES CASH GENERATED 3918. 4577. 6421. 7379. 8739. 9649. 10724. 11668. 12573. 14077. BORROWINGS 1151. 926. 5571. 4645. 4121. 3898. 4251. 4249. 4547. 4865. CAPITAL INCREASE 0. 0. 0. 0. 0. 0. 0. 0. 0, 0. GOVERNMENT CONTRIBUTIONS 1040. 5263. 4025. 28. 30. 32. 35. 37. 40. 43. NON OPERATING REVENUES 312, 347. 385. 424. 466. 503. 543, 587. 634. 684. NON OPERATING EXPENSES 360. 419. 489. 565, 652. 739. 839, 951. 1078. 1223, TOTAL LONG TERM SOURCES 6061. 10694, 15914. 11911, 12703. 13342. 14715. 15590. 16715. 18447. LONG TERN APPLICATIONS INVESTMENT IN INFRASTRUCTURE 2646. 6501. 8539. 3597. 3885, 3434. 3761. 4025. 4307. 4608. INVESTMENT ON FORCE ACCOUNT 842. 935. 1038. 1141. 1256. 1356. 1465,. 1582. 1708. 1845. INVESTMENT IN BUILDINGS 315. 595. 643, 347. 390. 1296. 1400. 1498, 1602. 1715. INVESTMENT IN EQUIPMENT 0. 60, 2778. 2958. 2284. 1296. 1400. 1498. 1602. 1715. TOTAL INVESTMENT 3803. 8091. 12997. 8044, 7815. 7382. 8025. 8602. 9220. 9882. INTEREST 1262. 1279. 1362. 1923. 2301. 2755. 3113. 3468. 3636. 3774. REPAYMENT 670. 699. 916. 1233. 1450. 1602. 1927. 2771. 3295. 3584. LOSS (GAIN) .ON FOREIGN EXCHANGE 79. 165. 163. 187. 183. 197. 196. 194. 189. 187. TOTAL DEBT SERVICE 2011. 2143. 2441. 3343. 3934. 4554. 5236. 6432. 7119. 7545. TOTAL OTHER INVESTMENT 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. TOTAL LONG TERM APPLICATIONS 5814. 10234. 15438. 11387. 11748. 11936. 13261. 15034. 16339. 17427. EXCESS LT. SOURCES / LT. APPLIC 247. 460. 476. 523. 955. 1406. 1454. 556. 377. 1020. SHORT TERM SOURCES INCREASE ACCRUALS 49. 22. 25. 168. 113. 136, 107. 106. 50. 42. INCREASE PAYABLES 34. 34. 27. 26. 30. 35. 39. 39. 46. 50. SHORT TERM APPLICATIONS INCREASE IN STORES 109. 109. 87. 84. 95. 110. 123. 124. 146. 157. INCREASE IN RECEIVABLES 292. -279. 402. 274. 349. 291. 334. 320. 370. 473. INCREASE PREPAID EXPENSES 135. 122. 126. 130, 145. 155. 173. 178. 234. 247. LIQUIDITY INCREASE -234. 563. -99. 230. 509. 1021. 970. 79. -277. 233. CASH AT THE END OF PERIOD -446. 117. 18. 248. 757. 1778. 2748. 2828. 2551. 2784. - 59 - ANNEX 4 Table 7.8 03/10/93 CAMEROON THIRD DOUALA PORT PROJECT NATIONAL PORT AUTHORITY PROJECTED INCOME STATEMENTS FY 1981-1991 (IN MILLIONS OF CFAF) 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 REVENUE ON SHIPS 1313. 1604. 1866. 2454. 2832. 3353. 3834. 4400. 5051. 5832. 6710. REVENUE ON STAYING TIME 488. 570. 649. 828. 913. 1081. 1217. 1388. 1602. 1843. 2135. REVENUE ON MERCHANDISE 2150. 2716. 3257. 4145. 4721. 5470. 6061. 6698. 7171. 7726. 8556. RENTALS 1884. 2755. 3211. 4062. 4690. 5401. 5982. 6667. 7287. 7989. 8923. MISCELLANEOUS REVENUES 99. 111, 123. 137. 150. 165. 179. 193. 208. 225. 243. REVENUE ON WORKSHOP 149. 183. 214. 272. 315. 364. 402. 449. 492. 538. 603. FORCE ACCOUNT 752. 842. 935. 1038. 1141. 1256. 1356. 1465. 1582. 1708. 1845. TOTAL REVENUE ON OPERATIONS 6835. 8781. 10255. 12936. 14764. 17090. 19031. 21260. 23394. 25861. 29015. EXPENDITURES STAFF COSTS 1843. 2315. 2690. 3100. 3528. 3985. 4477. 5018. 5542. 6338. 7132. MATERIALS AND FUELS 1065. 1292. 1520. 1702. 1877. 2077. 2307. 2565. 2827. 3136. 3469. GENERAL EXPENDITURES 1056. 1256. 1468. 1713. 1980. 2289. 2598. 2953. 3356. 3815. 4337. TOTAL WORKING EXPENDITURES 3964. 4863. 5678. 6515. 7385. 8351. 9382. 10536. 11726. 13288. 14938. CASH GENERATION 2S71. 3918. 4577. 6421. 7379. 8739. 9649. 10724. 11668. 12573. 14077. DEPRECIATION ON INFRA 784. 980. 1245. 1586, 1754. 1937. 2108. 2294. 2493. 2707. 2937. DEPRECIATION ON BUILDINGS 316. 278. 305. 334. 350. 367. 426. 490. 558. 631. 709. DEPRECIATION ON EQUIPMENT 760. 942. 943. 1215. 1506. 1730. 1854. 1989. 2134. 2289. 2456. TOTAL DEPR. (NON REV. ASSETS) 1860. 2199. 2492. 3135. 3610. 4034. 4388. 4773. 5185. 5627. 6101. TOTAL OPERATING COSTS 5824. 7062. 8170. 9650. 10995. 12385. 13771. 15309. 16911. 18916. 21039. NET OPERATING REVENUE 1011. 1719. 2085. 3286. 3769. 4705. 5260. 5951. 6483. 6946. 7976. INTEREST CHARGE 1045. 1290. 1279. 1374. 1923. 2301. 2755. 3113. 3468. 3636. 3775. LOSS (GAIN) ON FOREIGN EXCH. 0. 79. 165. 163. 187. 183. 197. 196. 194. 189. 187. RESULT ON OPERATIONS -34. 429. 806, 1913. 1846, 2404. 2505. 2838. 3015. 3310. 4201. EXTRA OPERATIONAL REVENUE 279. 312. 347. 385. 424. 466. 503. 543. 587. 634. 684. EXTRA OPERATIONAL EXPENSES 306. 360. 419. 489, 565. 652. 739. 839. 951. 1078. 1223. NET RESULT -61. 382. 733. 1809. 1705. 2218. 2269. 2543. 2651. 2866. 3663. RATIO WORKING RATIO 0.58 0.55 0.55 0.50 0.50 0.49 0.49 0.50 0.50 0.51 0.51 OPERATING RATIO 0.85 0.80 0.80 0.75 0.74 0.72 0.72 0.72 0.72 0.73 0.73 INTEREST COVERAGE RATIO 0.97 1.28 1.51 2.23 1.86 1.97 1.84 1.86 1.82 1.87 2.07 DEBT SERVICE RATIO 1.83 1.87 2.14 2.62 2.21 2.22 2.12 2.05 1.81 1.77 1.87 - 60 - ANNEX 4 Table 7.9 03/10/83 CAMFRUON THIRD DOIAI.A PORT PROJECT NATIONAL PoRr AUTHORITY PROJECTED ILANCE SHEETS 9Y 1981-1991 (IN MILLIONS OF CFAF) 1981 1982 1983 1984 1985 1986 1987 1989 1989 1990 1991 ASSETS FIXED ASSETS LAND 12310. 12310. 12310. 12310. 12310. 12310, 12310. 12310. 12310. 12310. 12310. INFRASTRUCTURE 23962. 27430. 34846. 44403. 49121. 54242. 59012. 64218. 69805. 75800. 32233. BUILDINGS 5794. 6109. 6704. 7347. 7695. 8085. 9380, 10780. 12278. 13880. 15595. EQUIPMENT 9467. 9417. 9427. 12154. 15062. 17297. 18543. 19892. 21340. 22892. 24557. TOTAL GROSS FIXED ASSETS 51533. 55266. 63287. 76214. 84188. 91933. 99245. 107201. 115733. 124882. 134694. DEPRECIATION ON INFRASTkUCT 2233. 3193. 4417. 5983. 7717. 9635. 11722. 13996. 16469. 19156. 22073. DEPRECIATION ON BUILDINGS 1343. 1621. 1925. 2259. 2609. 2977. 3403. 3893. 4451. 5082. 5791. DEPRECIATION ON EQUIPMENT 2675. 3567. 4459. 5625. 7081. 8761. 10565. 12b04, 14588. 16827. 19233. TOTAL DEPRECIATION 6251. 8380. 10802. 13867, 17407. 21372. 25690. 30393. 35508. 41065. 47097. OTHER INVESTMENT 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. 0. TOTAL NET FIXED ASSETS 45292. 46886. 52485. 62347. 66781. 70561. 73555. 76808. 80225. 83817. 87598. OTHER FIXED ASSETS 498. 498. 490. 498. 498. 498. 498. 498. 498. 498. 498. TOTAL FIXED ASSETS 45780. 47384. 52983. 62845. 67279. 71059. 74053. 77306. 80723. 84315. 88096. SHORT TERM ASSETS STORES 128. 237. 346. 433. 517. 612. 721. 844. 968. 1114. 1272. RECEIVABLES 2475. 2767. 2488. 2890. 3164, 3513. 3804. 4139. 4459. 4829. 5302. PREPAID EXPENSES 289. 424. 546. 672. 802. 947. 1102. 1275. 1453. 1688. 1935. CASH AVAILABLE 342. 95. 117. 95. 248. 757. 1778. 2748. 2828. 2551. 2794. TOTAL SHORT TERM ASSETS 2892. 3523. 3497. 4090. 4731. 5829. 7406. 9006. 9708. 10182. 11293. TOTAL ASSETS 48672. 50907. 56480. 66935. 72010. 76888. 81459. 86312. 90431. 94496. 99388. LIABILITIES LONS TERM LIABILITIES CAPITAL 8040. 8040. 8040. 8040. 8040. 8040. 8040. 8040. 8040. 8040. 8040. RETAINED EARNINGS 11031. 12373. 18205. 23875. 25421. 27485. 29590. 31972. 34466. 37183. 40702. LONG TERM DEBTS 25219. 25700. 25927. 30582. 33994. 36664. 38960. 41285. 42763. 44016. 45297. TOTAL LONG TERM LIABILITIES 44290. 46113. 52172. 62497. 67454. 72190. 76590. 81296. 85269. 89238. 94039. SHORT TERM LIABILITIES PAYABLES 3781. 3815. 3849. 3877. 3903. 3933. 3967. 4006. 4045. 4092. 4142. ACCRUALS 389. 438. 459. 484. 652. 766. 902. 1009. 1116. 1166. 1208. OVERDRAFTS 554. 541. 0. 77. 0. 0. 0. 0. 0. 0. 0. TOTAL SHORT TERM LIABILIIES 4724. 4794. 4308. 4438. 4555. 4698. 4869. 5015. 5161. 5258. 5349. TOTAL LIABILITIES 49014. 50907. 56480. 66935. 72009. 76888. 81459. 86312. 90431. 94496. 99388. RATIO CURRENT RATIO 1.63 1.36 1.23 1.09 0.96 0.81 0.66 0.56 0.53 0.52 0.47 LIQUIDITY RATIO 1.71 1.46 1.37 1.21 1.08 0.90 0.73 0.61 0.59 0.58 0.53 DEBT-EQUITY RATIO 1.32 1.26 0.99 0.96 1.02 1.03 1.04 1.03 1.01 0.97 0.93 RATE OF RE1URN 0.022 0.037 0.040 0.053 0.056 0.067 0.072 0.071 0.081 0.083 0.091 RATE OF RET. ON REV. ASS. 0.022 0.037 0.037 0.045 0.045 0.049 0.049 0.049 0.048 0.046 0.047 CAMEROON THIRD DOUALA PORT PROJECT DOUALA PORT TRAFFIC STATISTICS FOR DOUALA 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 NUMBER OF SHIPS 1216. 1391. 1496. it84. 1667. 1768. 1867. 1990. 2123. 2265. 2420. TOTAL TONNAOE 3534. 4178. 4611. 5021. 5134. 5893. 6375. 6885. 7439. 8026. 8670. AVERAGE STAYING TIME 3.22 3.06 2.97 2.92 2.79 2.76 2.74 2.73 2.73 2.74 2.75 PPICE T1DEXES NATIONAL INFLATION 0.140 0.120 0.110 0.110 0.100 0.100 0.080 0.080 0.080 0.080 0.080 INTk.RNATIONAL INFLATION 0.120 0.100 0.090 0.090 0.080 0.080 0.080 0.080 0.070 0.070 0.070 SAL^RY INCREASES 0.120 0.160 0.100 0.090 0.090 0.080 0.070 0.070 0.070 0.070 0.070 STAFF MFRTT INCREASE 0.030 0.030 0.030 0.030 0.020 0.020 0.020 0.020 0.020 0.020 0*020 IN.FSTMFNT PRICE INPEX 0.000 0.000 0.080 0.080 0.080 0.080 0.080 0.080 0.070 0.070 0.070 DEPRECIATION NATIONAL CURREN. 0.000 0.050 0.050 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 REAL TARIFF INCREASES (1) TARIFF INCREASE ON SHIPS 0.150 -0.040 -0.020 0.120 0.000 0.020 0.000 0.000 0.000 0.000 0.000 TARIFF INCRE ON STAYINGTIME 0.300 -0.040 -0.020 0.120 0.000 0.020 0.000 0.000 0.000 0.000 0.000 TARIFF INCR. ON MERCHANDISE 0.200 -0.040 -0.020 0.060 -0.040 -0..030 -0.050 -0.050 -0.080 -0.080 -0.050 TARIFF INCREASE ON RENTALS 0.050 0.160 -0.020 0.080 0.000 -0.010 -0.030 -0.030 -0.050 -0.050 -0.030 TARIFF INCR. FOR WORKSHOPS / 0.070 -0.040 -0.020 0.080 0.000 --0.010 -0.030 -0.030 -0.050 -0.050 -0.030 AVERAGE TARIFF INCREASE 0.147 0.030 -0.020 0.084 -0.014 -0.008 -0.028 -0.028 -0.045 -0.044 -0.026 (1) ON TOP OF LOCAL INFLATION O -J 41. - 62 - ANNEX 5 Page 1 ACTION PLANS A. Action Plan for Organizational Development 1. In order to meet the requirements arising from past and future increases in traffic and size of ships, the completion of extension works of the Port, and the increasing complexity of NPA's financial system with its increasing indebtedness, NPA will further strengthen its organization and continue modernizing its corporate planning system. Organizational Development 2. All measures included below should be implemented by December 31, 1983. (a) Directorate of Civil Works. In order to raise staff pro- ductivity and reduce costs, NPA will fully enforce the management control system in this sector to control costs and productivity, reinforce upper-level staff by trans- ferring staff from the Directorate of Studies where they are no longer needed to the Directorate of Civil Works (para. 3.03) and control increases in staff through the manpower plan (para. 3.07). (b) Access and Movement of Ship. To improve the safety in movement of ships, a Directorate of Access will be created. It will be responsible for access maintenance, dredging hydrography and assistance to navigation. This directorate will be headed by a Cameroonian Director assisted by a qualified expert. The existing staff in NPA in charge of these matters will be trained especially for access problems in a special training plan to be discussed with the Bank (para. 3.04). (c) Management of Human Resources. NPA's training system is now in effect. Beginning in late 1983, NPA will implement more effective plans and systems for manpower development, training, and personnel administration and evaluation, with the assistance of consultants financed under the proposed project. The present organization for the management of human resources will need strengthening at the senior level. Therefore, a position of Deputy Director to Human Resources, in charge of personnel administration, social services, and training will be created, directly under the authority of the Director of General Administration and filled by end-1983 (para. 3.07). (d) Directorate of Finances. The task of the senior staff has become more complex with the management of the debt, part - 63 - ANNEX 5 Page 2 of it in foreign currencies, and the extension of the cost accounting system. Therefore, the intermediate-level staff of the Directorate of Finances will receive specialized training as included in the agreed outside training plan (para. 3.10). In the present organization, all decisions are taken by the Director who is overloaded with day-to-day problems. After the nomination of a new Director of Finances, in consultation with the Bank, NPA will hire a Deputy Director to share the work load of the Director, and thus allow him to concentrate on financial policy issues (para. 3.14). (e) Division of Economic Studies. This division is currently insufficiently staffed. NPA will recruit one highly qualified economist for traffic analysis, projection and economic investment studies (para. 3.15). (f) Data Processin Department. This department is currently limited in size, because its activities comprise only maintenance of existing programs, collection of input data and dispatching of printouts. With the acquisition of hardware, giving NPA full autonomy in data processing, the tasks of the Department will be qualitatively and quantitatively changed. NPA will have to expand its programming and operating capacities, and in priority, reinforce the higher-level staff of the Department by recruiting a qualified specialist by September 30, 1983, prior to the delivery of the hardware equipment. (g) Corporate Planning. NPA has already a training plan, prepared by the Training Division, and an investment plan, prepared by the Department of Studies. It will establish a Corporate Planning Department in charge of coordinating long-term planning with the Training Division and the Department of Studies, and of preparation of the financial and operational plans. NPA will appoint a suitable person for heading this department. Long-Term Planning 3. Within the framework of the National Development Plan, NPA will prepare by June 30, 1984 a full five-year corporate plan. This plan will be discussed with the Bank prior to final approval by NPA's Board, and will be updated annually thereafter, in consultation with the Bank during the project disbursement period. The corporate plan will comprise: (a) a manpower plan, to be prepared with technical assistance as needed (para. 3.07); (b) an investment and financing plan (para. 5.06); and - 64 - ANNEX 5 Page 3 (c) an operational plan for port activities. B. Financial Action Plan 4. This plan of action comprises those measures geared to improving profitability and strengthening NPA's working capital and liquidity. Improvement of Profitability 5. In order to raise its operating revenues and to capture a significant portion of the benefits for the project, NPA will ensure that its tariffs are sufficient to achieve a working ratio defined as working expenditures (i.e., staff costs, consumption and supplies, and general expenditures) divided by total revenue from operations, of at least .52 in FY1984 and .50 from FY1986 forward (para. 7.19). 6. Tariff structure will reflect more adequately the full costs of services provided to port users defined as direct cost, plus depreciation on infrastructure, financial costs, and a margin sufficient to cover total overhead (para. 7.06). 7. In order to avoid an excessive increase in staff costs, NPA will limit total average salary increases resulting from promotion and seniority to a maximum of 3% per annum starting in FY1984 (para. 7.07). 8. Further to para. 3(b) above, NPA's investment policy will be described in a detailed five-year revolving investment and financing plan to be prepared and presented to the Bank by June 30, 1984. This plan will present in Part A all items justified by adequate technical, economic and financial studies and in Part B items subject to further study. It will be updated annually, in consultation with the Bank, during the disbursement period of the project (para. 5.06). Strengthening of Financial Structure 9. In order to strengthen its financial structure, NPA should improve the management of its short-term assets and reinforce its working capital. For that purpose, the following objectives will be implemented: (a) By June 30, 1984, commercial receivables will be reduced to two months of revenue. For that purpose, NPA will give full responsibility for revenue collection to the operational department (para. 7.11); (b) Starting as of December 31, 1983, bank overdrafts should not be incurred (except for short periods (para. 7.21)); and - 65 - ANNEX 5 Page 4 (c) To avoid an excessive increase in indebtedness, NPA will raise its contribution to capital investment on its own funds to 17% in FY1984 and 40% from 1986 forward (para. 7.22). CAMER00N THIRD DOUALA PORT PROJECT NAT-ONAL PORT AUTHORITY ORGAN-ZAT-ON CHART 江織． CAMEROON THIRD DOUALA PORT PROJECT Project Execution Timetable YEARS 1982 1983 1984 1985 1986 1987 1988 QUARTERS 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 4 1 2 3 4 1. CIVILWORKS 11. EQUIPMENT (i) Banana Handling Conveyors 7 7 00 Tug Boat NO Electronic Positioning Equipment Buoyage Upgrading in the Entrance Channel I Cr1% 111. COMPUTER (i) Hardware (ii) Technical Assistance IV. 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Р л �а< ° ., . . � � � � . . . � i ч' i .. , �к . . . � �� ��iп � ei р+.��iгпи� ��т + �Г� _ + i , } ,; + i � �� �i . . .. . `� Э ���I � ,� 1 , . ,. 3 I �� �Ii . ��� � � � � � �� ��� i , . 1/ � '� � �� `''/�; , F �' 11 ;1;� '� �т � �� �� �� � (�i Н ог / � I I ' � \ 1 + , � " ;_ ; о 9о, п !о, в.°п,! п� -1 _" ',1 � � '� 11 � , __� ' logs 1�у Ьогдв ап0 �у + I� n.f'(5оп Свiо,•� �w5т, , I I I� вог>,�- А<< '� аиоп,н�птг! 1i _ 1� , 1 1I �prolemion,o �а°°���� � .'1 I � ыкпхwогег � ', �i� � � � д. � � •' � � � � � � I S1o�a9e �а� п !пг / У���' � �� /' I floai�ng�..�i �, / I ��/ J / I �/ � � �' � CAMEROON I 4� у,,, � i �''� ° TH1RD DOUALA PORT PROJECT %� DOWNSTREAM PORT EXTENSION � �-� ��� . PREVЮl15 � , �"/'� FM15T1NG РРОIЕСТ OJECi \ / �,� °д ��1�-, _� � aon ian����,e, ��'� ,- -�� -ч Roads �,�,� , '� � �в+ . - � .-` ROilwey5 ` �\ -; r ,.пп. Рогг 1�п�гг . % \� ' о ioo зоо эоо +оо soa ьао мЕгЕRS COz >| > 800n 33 mz - 06 »t - -l-