China - Tianjin Port Project

 Tianjin port project Report No: ; Type: Report/Evaluation Memorandum ; Country: China; Region: East Asia And Pacific; Sector: Ports & Waterways; Major Sector: Transportation; ProjectID: P003458 December 28, 1995 China: Tianjin Port Project (Loan 2689-CHA) The Implementation Completion Report (ICR) on the China Tianjin Port project (Loan 2689-CHA, approved in FY86) was prepared by the East Asia and Pacific Regional Office, with Appendix B contributed by the Borrower. The loan for US$130 million equivalent was approved on May 6, 1986, and closed on October 31, 1994, one year and ten months behind schedule. The loan was fully disbursed. The project was the second to assist port development in China. The project's main objectives were to assist the Government of China in relieving congestion in the Port of Tianjin—China's third largest and the one serving Beijing—and in increasing its handling capacity through the provision of additional facilities; it also aimed at improving the planning, managerial, and operational capabilities of its staff. To achieve these objectives, the project comprised construction of 11 berths (5 for timber, 6 for general cargo), related infrastructure and equipment, and technical assistance. The Bank also encouraged the establishment of an autonomous port authority, although this was not a formal objective of the project. The project was successfully implemented and its objectives were achieved. The project's main design change involved converting one of the timber berths for use by containers; this was expeditiously done thanks to flexible engineering design. The performance of an autonomous corporation for port construction, as well as that of Tianjin Port Authority, were very good; the delay in completing the project was mostly due to problems with preparation and evaluation of bids and implementation of contracts. Studies focused on engineering design, operational efficiency, preparation of a master development plan, and improving the access channel to the port. Most of the studies' recommendations were implemented; others are underway. A management information system, established under the project and currently operational, deserves special mention. Training was successfully carried out, both locally and abroad. Finally, Tianjin Port, as a pilot port in the decentralization policies started in 1984, was granted substantial autonomy in management and finances; however, tariffs remained controlled. The main lessons learned include: (i) more autonomy to port authorities and launching autonomous port construction companies, appear as effective first steps in decentralizing China's ports; and (ii) port decentralization needs to include more freedom to set tariffs. The economic rate of return for the project is estimated at 16 percent, which is satisfactory although lower than the appraisal estimate of 19 percent. The ICR is good. It rates the project outcome as satisfactory, sustainability as likely, and institutional development as substantial; it further rates the Bank's performance as satisfactory. The Operations Evaluation Department agrees with these ratings. No audit is planned.