Tanzania - Port Rehabilitation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 4212-TA, STAFF APPRAISAL REPORT TANZANIA PORT REHABILITATION PROJECT November 8, 1984 Eastern Africa Regional Office This docuiment 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 EQUIVALEN1S Currency Unit = lanzaniia Shillirng lSh 1.0 = US$0.06 I Sh 17.0 = US$1.00 FISCAL YEAR 1/ July 1 to June 30 WEIGHTS AND MEASURES 1 meter (m) = 3.2808 feet (ft) 1 kilometer (km3) 0.6214 miles (ml) 1 kilogram (kg)' 2.2046 pounds (lbs) 1 metric ton (tonne) 1.023 short tons GLOSSARY OF ABBREVIA1IONS AMI Agence Maritime Interrnationial AIC = Air lanzania Corporation BEACON British East Africa Contairier Consortium DANIDA = Danish International Development Agency EAC = East African CommuLity EAHC East Africarn Harbours Corporation EEC European) Economic Commiunity EDF = Economic Development Fund FINNIDA Finnish Irnterriational Development Agency KOJ Kurasini Oil Jetty MCW = Ministry of Commurnicatiorns and Works MOCI Ministry of Communications and Iransport MOW Ministry of Works MPEA = Ministry of Planninrg arid Economic Affairs NMC = National Milling Corporation NORAD = Norwegian Agency for Development NTC National Transport Corporation ODA Overseas Development Administration (lJ.K) RSA = Republic of South Africa SWI = Ship Waitirig lime IHA = lanzaniia Harbours Authority IRC = lanzaria Railways Corporation ZBR = Zaire, Burundi arid Rwanda 1/ Years givern in this report refer to the twelve months endinig in the year mentiorned.  FOR OFFICIAL USE ONLY UNITED REPUBLIC OF TANZANIA PORT REHABILITAIION PROJEC1 lable of Contents Page No. I. Ihe Transport Sector .................................... 1 A. Economic Background ................................. 1 B. The Transport Sector ................................ 1 C. Transport Policy, Planning and Coordination ......... 5 D. Summary .......... 7 E. Past Bank Group Sector Operations ................... 7 II. The Port Sub-Sector ..................................... 10 lanzania Harbours Authority ............................. 10 A. Organization Management and Staff ................... 10 B. Budget Accounts, Audit and Insurance .... ............ 11 C. Management Information System (MIS) and Port Planning ..................................... 12 D. Tariffs ............... .............................. 12 E. Training . ........................................... 13 The Port of Dar es Salaam ............................... 14 F. General . ............................................. 14 G. Port Physical Characteristics ....................... 15 H. Port Operations and Maintenance ..................... 16 I. Past and Present Traffic ............................ 18 J. Technical Assistance ................................ 19 III. The Project ............. 21 A. Background ............ .............................. 21 B. Objectives ............ .............................. 21 C. Description ........... .............................. 22 D. Cost Estimates and Financing Plan ..... .............. 25 E. Implementation ...................................... 26 F. Environmental Aspects ............................... 27 G. Procurement ........... .............................. 28 H. Disbursements .......... ............................. 29 This report has been prepared by Messrs. J. Lethbridge (Sr. Port Engineer), M. C. Dick (Sr. Economist) and A. A. Krishnarn (Financial Analyst) on the basis of their findings during an appraisal mission in November/December 1981, and subsequent post appraisal missions. 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 Conternts (Continued) Page No. IV. Economic Analysis ........................................ 35 A. Future Traffic ................................. 35 B. Project Benefits ................................ 38 C. Sensitivity Analysis . . .42 D. Project Risks... 43 V. Financial Evaluation .. ..49 A. General .49 B. Past Performance .49 C. Financial Forecasts .51 D. Projected Operating Statements .52 E. Projected Cash Flow .52 F. Projected Balance Sheet .54 VI. Agreements Reached and Recommendations .61-62 ANNEXES 1 Selected Documents and Data Available in Project Files . .63-64 2 Engineering Aspects ..65-67 3 Channel Improvements ..68-69 4 Bank Projects in Transport Sector .70 5 Ports Iraining ..71-76 6 Technical Assistance and Training Detailed Requirement ..77-86 7 Progress Rpoorting System . .87-90 CHARTS 1 THA Organization .................... . ............. 91 2 Port Organization ................. .............. . 92 3 Implementation Schedule ....93 MAPS 1 Existing and Proposed Developments 2 Project Locations  TANZANIA PORT REHABILITATION PROJECT Credit and Project Summary Borrower: United Republic of Tanzania. Beneficiary: Tanzania Harbours Authority (THA). Amount: SDR 26.2 million (US$27 million equivalent). Terms: Standard. Re-Lending Terms: Total credit will be on lent to THA for 20 years including 5 years of grace at 11% per annum. THA to bear foreign exchange risk. Co-financing: The United Republic of Tanzania is arranging co- financing as follows: grants from the Governments of Denmark-DANIDA (US$7.9 million equivalent); Finland- FINNIDA (US$6.8 million equivalent); Italy (US$3.8 million equivalent); Netherlands (US$10.3 million equivalent); Norway-NORAD (US$2.8 million equiva- lent); and United Kingdom-ODA (US$0.3 million equiva- lent). Project Objectives The proposed project is designed to provide for the and Description: rehabilitation and modernization of the Port of Dar es Salaam, Tanzania's major port which also serves as an important regional port for several neighboring countries (Burundi, Malawi, Rwanda, Zaire, Zambia). The proposed project would provide special container handling facilities and equipment, replace some deteriorated general cargo equipment, modernize grain handling facilities, rehabilitate lighterage facili- ties and the petroleum jetty, repave sections of berths, and provide for a review of additional rehabilitation requirements, technical assistance and training, and consultancy services. The container and grain facilities would lower trans- port costs for Tanzania and land-locked neighbors, while the jetty, lighterage and paving investments are necessary to restore facilities to acceptable condition. Technical assistance and training would improve the Tanzania Harbours Authority's ability to train its personnel, and improve its operational and maintenance capability. Risks: Traffic could fail to increase as forecast; however, container traffic is likely to continue to grow  - ii - rapidly and grain and petroleum imports are unlikely to decrease significantly. Institutional benefits may materialize only slowly, but training and technical assistance should reduce this risk. No major physical risks are anticipated in implementing the proposed project beyond those that are normally expected in the construction of a project of this type and for which provision has been made by use of consultants. Estimated Project Costs: Local Foreign Total --------US$ millions----- Components: Advance Civil Works 3.0 1.7 4.7 Main Project Civil Works 11.9 24.4 36.3 Main Project Equipment 0.6 17.6 18.2 Technical Assistance/Training 0.9 3.1 4.0 Consultative Services a/ 0.7 2.5 3.2 Base Cost (mid-1984 prices) 17.1 49.3 66.4 Contingencies: Physical 1.9 2.1 4.0 Price 13.0 7.6 20.6 Total Project Cost b/ 32.0 59.0 91.0 Financing Plan: Local Foreign Total ------