Cameroon - Second Douala Port Project

Document of The World Bank FOR OFmFCIAL USE ONLY Report No. 4942 PROJECT COMPLETION REPORT UNITED REPUBLIC OF CAMEROON NATIONAL PORT AUTHORITY SECOND DOUALA PORT PROJECT February 14, 1984 West Africa Projects Department Transportation Division II This document has a restricted distribution and may be used by recipients only in the performance of their offiei duties. Its contents may not otherwise be disclosed without World Bank austhorization.  FISCAL YEAR July 1 - June 30 SYSTEM OF WEIGHTS AND MEASURES: METRIC Metric US Equivalent 1 meter (m) 3 3.28 feet (ft.) 1 square meter (m2) = 10.76 square feet (sq.ft.) 1 cubic meter (n3) = 35.30 cubic feet (cu.ft.) 1 kilometer (km) - 0.62 mile (mi.) 1 square kilometer (km2) = 0.39 square mile (sq.mi.) 1 hectare (ha) - 2.47 acres 1 metric ton (t) - 2,205 pounds (lb.) ABBREVIATIONS AND ACRONYMS ADB - African Development Bank BADEA - Banque Arabe pour le Developpement Economique de l'Afrique CCCE - French Economic Cooperation Agency (Caisse Centrale de Cooperation Economique) CIDA - Canadian International Development Agency dwt - Dead Weight Ton ERR - Economic Rate of Return FAC - Fonds d'Aide et de Cooperation FED - Fonds Europeen de Developpement GDP - Gross Domestic Product KfW - Kreditanstalt fur Wiederaufbau NPA - National Port Authority (Office National des Ports du Cameroon) PORTSIM - Bank's Port Simulation Model Ro/Ro - Roll-on, roll-off  FOR OFFICIAL USE ONLY UNITED REPUBLIC OF CAMEROON NATIONAL PORT AUTHORITY SECOND DOUALA PORT PROJECT PROJECT COMPLETION REPORT Table of Contents PREFACE ................. ....................................... (i) BASIC DATA SHEET .... ......... -*....................... *.................... (ii) HIGHLIGHTS .................... v*...... ................................... e(iii) I. INTRODUCTION ............................................................... I II. PROJECT PREPARATION AND APPRAISAL ...................... ........ 2 III. PROJECT IMPLEMENTATION ....... .................. ......... 5 A. Main Civil Works .......................................... 5 B. Tenders and Procurement ............... ..... ........ ...... 00. 8 C. Project Costs ....... ............................ .......... 8 D. -Project Financing .................................. . ................... 9 E. Disbursement ................ O-* ......................................... 10 IV. INSTIT!'CIONAL PERFORMANCE AND DEVELOPMENT ..................... 10 A. The National Port Authority ................... ....... *..... 10 B. Management and Organizational Effectiveness-......-----..- 11 C. Changes in Organisational Structure ....................... 11 D. Effectiveness of Long Range Planning and Management Information System. ..............9 12 E. Staffing and Training ............. ............... . 13 V. OPERATING PERFORMANCE. . . . ........................ 14 A. General Description ................... ..... ....... . ..... . 14 B. Actual Performance Compared with Appraisal Specifications ................................. . 1 4 C. Upstream Port Development..... ....... o .................... . 15 VI. FINANCIAL PERFORMANCE ..................... ............. . 15 VII. ECONOMIC RE-EVALUATION ............................. ...... ;.... 17 A. Traffic ................. .................. .... 17 B. Project Components and Economic Benefits ............. ...... O.. 18 VIII. BANK PERFORMANCE ............................ ................ . 19 IX. CONCLUSIONS ........... ...................... . .............. 20 This document has a restricted distribution and may be used by recipients only in the performance of their ofricial duties. Its contents may not otherwise be discosed without World Bank authorization.  CAMROON SECOND DOUALA PORT PROJECT PROJECT COMPLETION REPORT List of Tables and Annexes Table 1 - Initial and Revised Financing Plan and Work Components Table 2 - Actual and Expected Project Implementation Table 3 - Combined Financing Table Table 4 - Actual and Appraisal Estimates of Project Costs Table 5 - Actual and Estimated Schedule of Disbursements Table 6 - Efficiency Indicators Table 7 - Actual and Projected Source and Application of Funds (1976-1980) Table 8 - Actual and Forecast Income Statements (1973-1981) Table 9 - Actual and Projected Balance Sheets (1973-1981) Table 10 - Actual and Forecast Traffic of Major Commodities (1974-1981) Annex 1 - Economic Reevaluation Tables: Table 1 - Simulation - Input Data Table 2 - General Cargo Berths - Results of Simulation Runs Table 3 - Downstream Project-Related Cargoes - Updated Low Forecasts (1980-1985) Table 4 - Ship-Waiting Costs With and Without the Project Table 5 - Cost and Benefit Streams of Downstream Facilities Table 6 - Cost and Benefit Streams of Channel Dredging Table 7 - Cost and Benefit Stream of Upstream Facilities Table 8 - Breakdown of Downstream Project Related Cargoes vith Respect to Handling Method (1981-2000) Table 9 - Actual Cost of the Project (1977-1980) Annex 2 - Status of Agreements Chart 1 - National Port Authority Organization Chart, 1982 Chart 2 - National Port Authority Organization Chart, 1975 Chart 3 - Appraisal and Actual Implementation Schedule  - i - CAMEROON SECOND DOUALA PORT PROJECT (LOAN 1321/CREDIT 657CM) PROJECT COMPLETION REPORT Preface 1. This Project Completion Report reviews the performance of the Second Douala Port Project for which Loan 1321-CM in the amount of US$15 million and Credit 657-CM in the amount of US$10 million was made effective in June, 1977. 2. This report, prepared by the West Africa Region, is based on a field mission and on review of the project files. ONPC has indicated orally that it has no substantive comments on the report. 3. In accordance with the revised procedures for project performance audit reporting, this Project Completion Report was read by the Operations Evaluation Department (OED) but the project was not audited by OED staff. The draft report was sent to the Borrower for comments; however, none were received.  Mii) CAIEROON SECOND DOUALA PORT PROJFET 1321 Cl1657Ctl PROJECT COMIPLLTION REPORT BASIC DATA SHEET Key Project Date Original Items Plan ACtual Total PrcJ-rt Cost (USSailtion) 120.t6 145.20 Coat Overrun S -- 21 Loan Amount 15.0 15.0 Credit Amount 10.0 10.0 Disbursed Loan V 15.0 15.0 Dlebursed Credit 10.0 10.0 Cancetlled Loan Cancelled Credit Repaid Loan 1.26 1.26 HRpaid Credit Outstanding Loan 23.74 23.74 Outstanding Credit 10.00 0.00 Date Phyalcal Components Completed 03/83 12.31.00e/ (ProportLon Actually Completed by above date S) Proportion of Timt Overrun -- __ Economic Rate of Return to Cameroon 14% 16% Financial Rat" of Return 2 (1981) 5.0% 2.1% Other Project Date Item First Mention In FILe. 01.18.72 Covermen t AppiLcation -- Negotiatiosn June-July 1976 Board Approval 08.20.76 Loan Agreemnt 09.24.76 Effectiveness 06.15.77 Clostng Date 06.30.81 Fiscal Year Borrower July 1 - June 50 Borrower loan M.P.A. Borrower Credit Cov.rament of Cameroon Executing Agency S P.A. Cumulative Estimmted and Actuel Disbursement CIBNDIIDA) Tust'ooo) FT76 FY77 YY78 FY79 Fao (1) Appraiaal 6.05 16.78 23.51 25.00 25.00 (ii) Actual -- 13.17 17.81 22.5 25.00 % of (ii) to (i) -- 78 76 90 100 miselon Data month/ Uo. of No. of Date of Ite-m Year Days Pereone Man/Days Report IdentifricatiDn Preapprainal 11/73 12 3 26 01/15/73 Appraisal 10/22/75 Supervision I 10/77 I1 5 24 12/14/77 Supervision 2 07/78 7 1 7 07/14/78 Supervision 3 12/78 10 3 30 01/04/79 Supervision 4 07/79 8 4 32 08/10/79 Supervision 5 02/80 6 3 24 05/08/80 Supervieion 6 12/80 9 3 27 02/12/81 Supervision 7 04/81 5 3 15 05/08/81 Completion 02/82 8 3 24 03/15/82 Country Exchange Rates 2' Year Exchange Rate Appralasl USS1 - 225 CFAF 1976 USSI - 237 CPA? 1977 US1 - 247 CPAF 1978 US51 - 229 CFAF 1979 USS1 - 218 CFAF 198O USS11 - 206 CFAJ Average during USS1 -226 CFAF Project Ebecution It Half of Loan and Credit mold to Nory. 2/ Completed except for dredging works *till under execution eS of June 1982. 3/ floating averages. 06(82  - iii - CAMEROON SECOND DOUALA PORT PROJECT (LOAN 1321/CREDIT 657-CM) PROJECT COMPLETION REPORT Highlights 1. The principal objectives of the project were: (a) to provide additional capacity at Douala port for traffic projected through 1985; (b) to enable specialized log carriers and semi-specialized container ships to use the port; and (c) to improve road and rail access to the port and traffic within the port. 2. To achieve these objectives the project comprised the following elements: (a) construction of a new log port; (b) construction of a 500 m deep-water berth with storage area and transit sheds; (c) supply and installation of utilities; (d) a 530 m fishing berth with associated facilities; (e) dredging of the 22 km access channel to a depth of about -7.5 m; (f) construction of new rail sidings, a new railroad marshalling yard, and access roads; (g) rehabilitation of the existing port; and (h) consulting services for the supervision of construction. 3. Total project cost was US$145 million, about 21% higher than estimated at appraisal mainly due to a justified increase of the original project scope. The project was financed by several co-donors (AfDB, BADEA, CCCE, CIDA, FAC and KfW) with the Bank providing US$25 million.  - iv - 4. The project was successful. All elements have been satisfactorily implemented and the recalculated economic rate of return shows 22% against 18% estimated at appraisal. Higher than expected benefits obtained from rental of land for oil companies offset the 21% cost increase. The National Port Authority's (NPA) financial performance improved under the project and substantial productivity gains were achieved. 5. The following points may be of particular interest: (a) the consultants selected for construction supervision were not the same as those who had carried out the feasibility studies and had prepared the tender documents, resulting in difficulties to resolve site problems of this complex project (para. 3.11); (b) reasons for cost increase (paras. 3.14 to 3.16); (c) the cofinancing of the project with numerous donors made project management complex and difficult and led to delays in implementation and disbursements (paras. 3.19, 3.20 and 9.06a); (d) management performance and shift of emphasis from construction management to management of port operations and maintenance (paras. 4.04 to 4.06); (e) NPA's training program (paras. 4.15 to 4.17); (f) productivit- increase (para. 5.03); and (g) adequacy of traffic forecast (para. 7.02). EM#2/highlights  UNITED REPUBLIC OF CAMEROON NATIONAL PORT AUTHORITY SECOND DOUALA PORT PROJECT PROJECT COMPLETION REPORT I. INTRODUCTION 1.01 Cameroon, with a population of about 8.3 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 4.4% p.a. during the Third Plan (FY1972-1976), to about 8% p.a. during FY1977- 1981. Rapid expansion in agriculture, manufacturing and mining, including promising recent gas and petroleum discoveries and increasing gas and crude oil exports, supported by increased consumption and capital investments, contributed substantially to the economic growth. 1.02 During the Second and Third Plans the Government gave high pri- ority 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 was followed by a grad- ual shift towards the productive (agriculture, manufacturing and mining) and social sectors. The share of transport investments fell from a high 37% realized during the Third Plan (FY1972-1976) to a planned 26% for the Fourth Plan (FY1977-1981). 1.03 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 unex- ploited natural resources, particularly forestry, hydroelectric and min- eral resources, the outlook for continued economic growth appears favor- able. This growth however, will depend, among other factors, on the maintenance, improvement and expansion of the transport system, including the Port of Douala. So far, the Bank has helped finance the following transport projects: - The First Highway Project, completed in 1975 (US$12 million Loan 663-C! and US$7 million Credit 180-CN, larch 1970) - The First Railway Project, completed in 1975 (US$5.2 million Loan 687-CM, June 1971) - The First Douala Port Project, completed in 1976 (US$1.5 million Credit 229-CM, in January 1971)  - 2 - - The Second Highway Project, completed in 1978 (US$24 million Credit 429-CM and US$24 million Loan 935-CM, December 1973) - The Second Railway Project, completed in 1978 (US$16 million Loan 1038-CM, September 1974) - The Third Highway Project, completed in 1982 (US$16.5 million Loan 1515-CM, October 1978) - The Railway Engineering Project, completed in 1979 (Third Railway Project, US$2.3 million Loan S4-CM, June 1976) - The Fourth Highway Project (US$38.0 million Loan 1723-CM and US$10 million Credit 926-CM, November 1979) - The Fourth Railway Project (US$27.0 million Loan 1734-CM and US$20.0 million Credit 936-C1, January 1980). 1.04 The Second Douala Port Project, subject of this completion report, was financed together with eight co-donors under Credit/Loan 657/1321 CM and substantially completed in 1981. The Com- pletion Report is based on the folloving: - Appraisal Report of a Second Douala Port Project - Data available in Bank files - Findings of a final supervision mission which visited Cameroon in February 1982 - The draft PCR prepared by the NPA. II. PROJECT PREPARATION AND APPRAISAL 2.01 The Government of Cameroon and the NPA requested assistance from the Bank and other donors in the implementation of the Second Douala Port project, to meet the port's needs through 1985. This project was fore- seen as a logical extension of the First Douala Port project, which had increased port capacity to meet requirements until feasibility studies and implementation of the Second Port Project could be carried out. 2.02 Feasibility studies were undertaken by consultants Alternative sites along the Cameroonian coast and also within the Wouri estuary were considered. Douala was selected because of its accessibility by rail to a large area of forest reserves in southern and eastern Cameroon and because of its existing port infrastructure. Over the longer term, con- sultant's studies envisaged the possibility of additional facilities for oil tankers, and possibly bauxite traffic at Pointe Limboh, west of Victoria. Over the long term, it may also be appropriate to develop port facilities to the south near Kribi.  2.03 The Second Douala Port Project was designed to overcome the two major obstacles to development of the port of Douala, namely, its limited channel depth and lack of space for landward growth. The channel entrance had a limiting depth of about 5 m below low water datum, restricting size of fully-laden vessels which could enter or leave the port to about 3,500 dwt at high-water. Expansion was difficult in any direction; development upstream would have been hampered by limited water depth and the existing fishing industry, while development on the Bonaberi side of the channel involved problems of access and of its zoning for industrial development. Seaward development was also a problem due to location in that direction of a dockyard and naval base and to the sharp upward slope of the land behind the port facilities. 2.04 The solution provided through the project included dredging of the channel entrance to 7.5 m below low water datum over a length of 22 ka, with a depth of -9.5 m at the outer bar. Sand from the dredged channel would be used to reclaim land, both downstream and upstream of the existing port facilities. Buildings inhibiting expansion of the port downstream would be demolished, and the dockyard would be relocated upstream. 2.05 Principal objectives of the project were: (i) to provide additional capacity at Douala port for traffic projected through 1985, particularly to provide separate facilities for log exports and container traffic; (ii) to increase the depth of the access channel at Douala to enable specialized log carriers to up to 20,000 dwt and semi-specialized container ships to use the port; and (iii) to improve road and rail access to the port and traffic from within the port. 2.06 The original project comprised the following principal elements. A. Downstream Port Development (i) Construction of a new log port consisting of reclaimed area totaling about 20 ha for the reception, sorting, and storage of logs, a shallow quay of 50 m for launching and exporting logs within sheltered water, and three deep- water moorings for log carriers in the channel; (ii) construction of a deep-water berth of 240 m with -9.5 m depth alongside at low water (with the option of an extension to 400 m), for use by container vessels and as a general cargo berth, with a storage area (20.0 ha but initially without a container crane), as well as a transit shed; and (iii) supply and installation of utilities.  - 4- B. Upstream Port Development (i) New fishing berths, totaling 530 m in length and averaging a depth of -5 m; (ii) construction of a cold storage area and a fish marketing hall and associated facilities; (iii) construction of offices and workshops and provision of equipsent for a dockyard; and (iv) provision of a floating dry dock for the dockyard. C. Dredging of Access Channel Deepening by dredging of the port access channel to a depth of about -7.5 m in its inner 22 km length, and to about -9.5 m at the outer bar. D. Road and Rail Access Construction of: (i) new rail sidings and new railroad marshalling yard in the port area; and (ii) new road access to the log port, to be located in part on land not presently included in the port area. E. Rehabilitation of the Existing Port Removal of railway sidings and repair of paved aprons within the present port area. F. Consulting Services for Supervision of Construction 2.07 Negotiations took place in June 1976; the Board approved the project August 1976; and the loan/credit became effective in June 1977. The Bank's financing consisted of a loan of US$15 million and a credit of US$10 million equivalent. The tota