The project consisted of the building of a new container operator and was part of a major port sector reform plan. In the past, a number of attempts to revitalize the port had been attempted however none had been successful. In 2009 Groupement Bolloré, composed of Bolloré of France and the Société de Manutention du Terminal à Conteneurs de Cotonou, won the bid for a 25-year concession to build and operate the South Wharf Container Terminal. The project is of vital importance as it has the potential to be of huge economic benefit not just to Benin, but also to the wider region as a potential trade gateway to landlocked West African countries.
IPFA’s Team Experience was built upon a range of advisory services to PAC (Port Autonome de Cotonou) under the following four areas:
- Development of a PPP strategy in the Ports sector
- Development of Transaction Advisor (T-Ad) TORs, Contract Negotiation and Management
- Development of Stakeholder Communication Strategy and Implementation
- Development and implementation of Investor Conferences and Project/Portfolio Road Shows
The winning proposal included an entry fee of $33 million, ongoing fees of $29 per twenty-foot equivalent unit (TEU), and guaranteed annual traffic levels. The proposal also included a commitment to pay $200 million in concession fees during the first eight years of operation and invest $256 million in operating equipment and civil works over the life of the concession. The concession specified a completion date for wharf construction (21 months after the signing of the concession agreement) and outlined a termination procedure: if the construction is not completed 34 months after the signing, the concessionaire can terminate the agreement and be reimbursed for the entry fee paid at the signing.
The agreement also spelled out the concessionaire’s responsibility to pay the Port Authority a fixed fee when the wharf is delivered. After beginning operation the project expected to yield $200 million to $300 million in fiscal impact and create more than 450 jobs.
| Container Terminal Cotonou Port | Project ID: 6558 | ||
|---|---|---|---|
| Related names: | South Warf Container Terminal | ||
| Country/Region: | Benin/Sub-Saharan Africa | ||
| Financial closure: | 08/2009 | Location: | South Warf, Cotonou port |
| Primary sector: | Transport | Secondary sector: | Not Applicable |
| Status: | Operational | Update Status Date: | .. |
| Project company: | Bolloré Group | ||
| Type of PPI: | Greenfield project | Subtype of PPI: | Build, operate, and transfer |
| Contract period: | .. | Termination year: | .. |
| Publicly traded: | No | Stock market: | |
| Contract History: | .. | Contract award method: | Competitive bidding |
| Bid criteria: | Not Applicable | No. of bids: | |
| Renewal Contract Award Method: | .. | Renewal Bid Criteria: | .. |
| Renewal Number of Bids: | 0 | Number of systems: | 1 |
| Captive Facility: | No | Percentage Captive: | 0 |
| Government granting contract: | Federal | ||
| Type of government support: | Key Features of Government Guarantee: | ||
| Is PPP Project: | Related Infrastructure By Govt: | ||
| Is PPP Part of Public Project: | Total Cost Of Public Project: | ||
| Key Features of Revenue/Cost Support: | Main Revenue Source: | User fees | |
| PPP Type: | Period Type: | ||
| Project Banks |
Infrastructure services
| Subsector | Segment | Technology |
|---|---|---|
| Seaports | Terminal | Container terminal |
Sponsor info
| Sponsor name | % ownership | Sponsor country |
|---|---|---|
| Bollore Group | 88 | France |
History
| Year | % private | Payment commitments to the government* |
Investment commitments in physical assets* |
Capacity | Type | Government cash subsidy commitments* |
|---|---|---|---|---|---|---|
| 2009 | 100 | 233 | 256 | 1000 | Throughput | Not Available |
Multilateral support
| Year | Agency | Support type | Support amount* |
|---|---|---|---|
Funding Details
| Funding Year | Private Debt Funding | Capital Grants | Govt Funding (Grant, Loan or Equity) | Local Public Bank Funding | Donor Funding (Foreign State Banks + ECAs) | Debt Equity Grant Ratio | Private Equity Funding |
|---|