Public Private Partnership
Cap Haitien Port Project
September 2015
IMPORTANT NOTICE
This market interest document (hereinafter referred to as the Document) is being issued
on behalf of the United States Agency for International Development (USAID) and of the
Government of Haiti (GOH) acting through the National Port Authority (“Autorité Portuaire
Nationale” or APN) to present the proposed Public Private Partnership for the Cap Haitien
Port (CHP or the Port) as a business opportunity and to obtain preliminary assessment
and feedback and an initial indication of level of interest in participating in the transaction.
The comments and feedback obtained will greatly assist USAID and GOH in deciding how
to structure the potential transaction going forward by ensuring that the requirements of
prospective port investors have been duly considered.
The Document does not contain or assert to contain all the information that a prospective
investor may desire. In all cases, interested parties should conduct their own investigation
and analysis of the information set forth in this Document.
This Document has been prepared by the International Finance Corporation (IFC) together
with its consultants from information supplied to it by USAID, the GOH and APN, as well
as several other government agencies and departments. None of USAID, the GOH and
any of its ministries, departments or agencies, nor IFC and any of its agents,
representatives, or advisors makes any representation (express or implied) or warranty as
to the accuracy or completeness of this Document or the information contained herein and
shall have no liability for it or for any other written or oral communication transmitted in the
course of an interested party’s evaluation of the proposed transaction. None of USAID,
the GOH, nor the IFC and any of its agents, representatives or advisors shall be liable to
reimburse or compensate an interested party for any costs or expenses incurred by the
recipient in evaluating or acting upon this Document.
This document does not obligate USAID or the GOH to release a solicitation or award a
contract(s) nor does it commit either (nor their advisors) to pay for costs incurred in the
preparation and submission of any eventual proposal.
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TABLE OF CONTENTS
IMPORTANT NOTICE ........................................................................................................................... 2
TABLE OF CONTENTS ......................................................................................................................... 3
KEY TRANSACTION HIGHLIGHTS ...................................................................................................... 5
CAP HAITIEN PORT – LOCATION, INFRASTRUCTURE AND CURRENT CONFIGURATION ............ 9
1.
Location ...................................................................................................................................... 9
2.
Facility Characteristics .............................................................................................................. 10
3.
Neighboring Ports ..................................................................................................................... 12
4.
Competitive Advantages ........................................................................................................... 12
CAP HAITIEN PORT – EXISTING SHIPPING LOGISTICS AND TRAFFIC ......................................... 13
1.
Shipping Services and Characteristics ...................................................................................... 13
2.
Traffic forecast .......................................................................................................................... 15
LEGAL AND REGULATORY FRAMEWORK ....................................................................................... 18
1.
Responsibilities relating to the operation and maintenance of the Port ...................................... 18
2.
Contracting Authority ................................................................................................................. 18
TRANSACTION PROCESS AND TIMELIME ....................................................................................... 20
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INVESTMENT OPPORTUNITY
The Government of Haiti (GOH) wishes to rehabilitate and modernize the international
seaport located in Cap Haitien, Haiti. The GOH has requested the financial support of the
United States Agency for International Development (USAID) to improve the facilities and
efficiency of Cap Haitien Port (CHP or the “Port”) to boost economic growth in the northern
part of the country. Concurrently, USAID and GOH through the Autorité Portuaire
Nationale (APN) and the Ministry of Economy and Finance (MEF), have initiated the
process of implementing a Public-Private Partnership (PPP). The GOH and USAID wish
to solicit feedback from interested parties on the viability of the transaction structure and
scope of responsibilities proposed below in order to eventually identify a terminal operator
with proven experience to operate and maintain the Port and implement the construction
work to rehabilitate the Port under a long-term and sustainable contract (“Transaction”).
The GOH and USAID have engaged the International Finance Corporation (IFC) as lead
advisor to provide support in developing the transaction structure and selection
procedures of a private operator (the “Operator”) through a fair and transparent bidding
process.
GOH and USAID are particularly seeking to:
Leverage a planned USAID financial contribution of up to $65 million that will cover
the rehabilitation cost of CHP infrastructure (container, general cargo and terminal
access requirements)
Reorganize facilities to accommodate growth-oriented cargo segments
Reduce costs associated with the use of the Port
Apply international best practice to improve port service quality and increase
throughput volumes through a PPP
Interested port operators are invited to provide their feedback, outlining their views about
the investment opportunity, potential issues affecting the feasibility of the Transaction,
necessary conditions required for the Transaction to be viable, and any additional issues
that may be useful for further consideration in development of the transaction and related
transaction structuring. This feedback will be used to assist USAID, GOH and IFC in
structuring and implementing the Transaction.
We would appreciate your preliminary indication of interest, as well as a statement of any
areas of concern, or suggestions toward the enhancement of the transaction that you may
have. To facilitate this process, IFC is soliciting comments from interest parties from
October 5 to October 20, 2015; and if appropriate will conduct informational sessions with
interested parties during the period of October 8 - October 30, 2015.
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KEY TRANSACTION HIGHLIGHTS
Interested parties are expected to provide feedback on the following matters:
1.
TRANSACTION OVERVIEW:
USAID and the GOH are interested in the development of northern Haiti and USAID has proposed a
funding envelope up to $65 million for the rehabilitation of the Port. In addition to supporting the planned
rehabilitation USAID anticipates providing technical assistance to the APN to improve its administrative
and regulatory functions at the Port, as well as to the Administration Générale des Douanes (AGD) to
improve customs processing at the Port. As well, through the IFC, USAID is supporting the GOH, which
is interested in awarding a contractual agreement to a private entity to operate and maintain the Port.
USAID and GOH are considering two structures:
Preferred Structure:
USAID and the GOH together seek to emulate a Design-Build-Operate-Transfer (DBOT) transaction by
conducting a single, combined iterative market research, prequalification, solicitation, and negotiation
process under the United States Government (USG) procurement framework leading to the award of
(1) a Design-Build (DB) contract to be led and supervised by USAID and (2) an Operation-Maintenance
(OM) contract from the GOH to a single bidder or bidding group, based on the best overall value
ultimately proposed by single bidders or bidding groups against pre-identified project criteria.
USAID and the GOH believe the best overall proposals for the rehabilitation and operation of the port
can be made by single bidders or bidding groups taking responsibility for development of a business
plan for operation of the port, and designing and implementing corresponding improvements based on
that business plan, the revenues it will generate and the funding envelope and operator’s own capital
available for improvements.
Alternative Structure:
A second structure is also being considered by USAID and GOH, whereby two different firms would
sign one contract each under two different procurement processes. A construction firm would sign a
Design-Build contract with USAID under the USG procurement framework and in parallel a port operator
would sign a long term PPP contract with GOH under Haiti’s 2009 Public Procurement Law.
2.
POTENTIAL TRANSACTION STRUCTURES:
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At this stage of the project analysis, USAID and GOH are contemplating the following possible
structures for the CHP Project:
Preferred Structure:
Under the first structure, the project would take the following form:




A private entity selected through a combined USAID-GOH procurement process under the USG
procurement framework, will be responsible for the design and construction of port capital works
as well as operations and maintenance of the port;
USAID will contract with the selected entity for construction of the vast majority of those capital
works;
A limited portion of the capital works will be constructed and funded at the selected entity’s risk
and expense in accordance with Haiti’s 2009 Public Procurement Law.
GOH will contract with the same selected entity to operate and maintain the port through a long
term PPP contract under Haiti’s 2009 Public Procurement Law.
Alternative structure:
The project could also take the following form:


Under USG procurement framework, a construction firm will be selected for the design and
construction of port capital works and USAID will award a contract to the construction firm for
those works;
Under GOH 2009 Public Procurement Law, a terminal operator will be selected for the
commercial management, operation and maintenance of the port under a separately tendered
contract.
Under both structures, the operator would have the right to collect fees from users during operation and
maintenance of the port, a portion of which may be remitted to the GOH in a fee sharing agreement.
3.
SCOPE OF WORK
Under the GOH-USAID combined structure described above, the selected entity’s scope of work will
entail:
Design / Build (DB):
-
The selected entity will be responsible for the design and rehabilitation of the Port.
Most capital works will be funded by USAID through a contract with the selected entity.
A limited portion (up to $3 million) of those capital works will be constructed and funded at the
selected entity’s risk and expense.
Operation / Maintenance (O&M):
-
The selected entity will operate in the Port in parallel to the implementation of the capital works;
The selected entity will operate the only terminal with container handling capacity and will thus have
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-
exclusive container handling responsibility; this includes handling containers for both cellular and
multipurpose / break-bulk vessels;
The selected entity will also be permitted to handle general cargo / break-bulk vessels as berth
utilization and terminal capacity permit;
The selected entity will have the right to load / discharge other types of cargo when requested by
other operators to do so;
The GOH is considering transferring to the selected entity the obligation to assume: (i) Periodic
maintenance of the container, general cargo and terminal access; and (ii) heavy maintenance and
repair of the Port. For this task, the entity will be reimbursed by APN.
Under the alternative structure described in section two of this table, the scope of work for both
selected private entities will entail:
Design / Build (DB):
-
A construction firm will be in charge of the design and rehabilitation of the Port.
Capital works will be funded by USAID through a contract with the construction firm.
Operation / Maintenance (O&M):
A terminal operator will be selected for the PPP contract and will have the following responsibilities:
The selected operator will operate in the Port in parallel to the implementation of the capital works;
The selected operator will operate the only terminal with container handling capacity and will thus
have exclusive container handling responsibility; this includes handling containers for both cellular
and multipurpose/break-bulk vessels;
- The selected operator will also be permitted to handle general cargo/break-bulk vessels as berth
utilization and terminal capacity permit;
- The selected operator will have the right to load/discharge other types of cargo when requested by
other operators to do so;
- The GOH is considering transferring to the selected entity the obligation to assume: (i) Periodic
maintenance of the container, general cargo and terminal access; and (ii) heavy maintenance and
repair of the Port. For this task, the entity will be reimbursed by APN
PROCUREMENT
The GOH award would be made in conformance with Haiti’s 2009 Public Procurement Law (Loi du 10
juin 2009 fixant les règles relatives aux marchés publics et aux conventions de concession d’ouvrage
de service public) together with its implementing regulations;
-
5.
The USAID Design-Build award would follow USG laws and procurement regulations.
We draw attention to the following points:
-
In 2013, the Government undertook a reform and modernization process of the port sector in Haiti,
including the operation of ports in the country;
The reform’s principal objective is to enhance the regulatory and institutional framework of the port
sector in Haiti and seeks to facilitate private sector participation in the port sector by transforming
the mandate of the APN into that of a port regulator
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6.
7.
EMPLOYEES
There are a total of 105 employees currently employed by the APN at the Port, 79 of whom are
permanent employees and 26 of whom are on contract. Please note that APN may expect that some
of its existing employees at the Port be transferred to the selected Operator.
CAPITAL INVESTMENTS REQUIRED
Civil works: are expected to be up to $50 million and will be funded by USAID. Civil works are
anticipated to focus primarily on design and construction associated with the repair / replacement of
the current commercial and cruise quays and related dredging. If one entity is selected for both
construction work and operation and maintenance, in accordance with Haiti’s 2009 Public Procurement
Law, a small portion of those civil works will be supported by the Operator.
Urgent works: are expected to be up to $15 million and will be funded by USAID. The United Nations
Office of Project Services (UNOPS) has been contracted by USAID to implement urgent works, which
include the following activities: repairs and replacement of Navigational Aids and VHF communications
system; installation of a CCTV System; improvements to security and the port perimeter wall;
improvements to lighting; demolition of unused buildings; installation of a movable reefer system with
generator; site utility upgrades; separation of the container yard from general cargo and break-bulk
areas; improvements to linear circulation; expanding and paving the container yard; new floating docks
for cabotage vessels; a pilot boat; and a tug boat. Urgent works will be phased and are expected to be
finalized by July 2017.
Equipment and IT system Capex: The Operator will supply and finance the terminal’s major
equipment and IT system necessary for container and break-bulk handling.
Important Note: The operator / selected entity will operate the port during the implementation of both
urgent and civil works.
8.
OWNERSHIP OF PORT SITE
According to Haitian law, all “ports” belong to the State.
9.
LITIGATION
Based on information provided by APN, we understand that there is no significant litigation or
arbitration currently pending which would reasonably be expected to have a material effect on the
design-build contractor or the operator.
10. ENVIRONMENTAL & SOCIAL (E&S) ISSUES
USAID is funding and monitoring the completion of an Environmental Assessment (EA) according to
US laws and regulations. The Operator will be required to fulfill its responsibilities under the agreement
with the GOH in line with IFC’s Performance Standards (PS). Construction under the USAID contract
must conform to the U.S. Government’s environmental compliance requirements and building codes.
Details on the specific E&S risks to be mitigated and managed by the Operator during operation shall
be made available in the Data Room during the bidding process.
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CAP HAITIEN PORT – LOCATION,
INFRASTRUCTURE AND CURRENT
CONFIGURATION
1. Location
The Cap Haitien Port (CHP) is one of Haiti’s principal international ports, second only to
Port-au-Prince. Located in the Bay of Cap Haitien, the port sits on Haiti’s North Coast. It
provides direct access to the markets in the northern departments of the country, which
are largely geographically separated from the capital city and its port facilities by mountain
ranges. The natural catchment area serves a population of approximately 10% of the
country’s nearly 10 million people. The Port’s centrally located geographic position in the
Caribbean Basin enables direct shipping services to the United States and the opportunity
for single connections to major global hubs throughout the region.
Hispaniola Island
Figure 1: Cap Haitien’s Hinterland Market and Major Roadways Serving Hispaniola Ports
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2. Facility Characteristics
Cap Haitien Port is comprised of the following
four distinct marine structures:
100m-long Cabotage Quay,
30m-long Ro-Ro Quay,
250m-long Commercial Quay, and,
115m-long Outer Quay (or Cruise Quay)
Current Status: Key Statistics
 Area: Approximately 10ha.
Including 4.5ha container yard
2,500 sq-m covered space
2.7ha open storage
 Vessels calls: ~325 p.a.
 Containers: ~ 10,000 TEU p.a.
 Dry Bulk: ~65,000 mt p.a.
 General Cargo:~26,000 mt p.a.
 Navigation Channel: 3.2km with
natural depth of 12m+ (not incl.
berths)
 Max Depth at Berth: 8.2 m
Figure 2: Cap Haitien Port Aerial Photo
Source: Inter-American Development Bank (IDB) Road Access Study
The Cabotage, Ro-Ro and Commercial Quays are located on the South side of the Port,
and the Outer Quay doglegs left from the Commercial Quay and is just off the east end of
the peninsula. The Outer Quay has three auxiliary structures, including pedestrian access
bridge (not functional), a mooring dolphin (not functional), and a catwalk. The existing port
site map is presented below:
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Figure 3: Cap Haitien Current Port Site Map
As shown in the figure 3, there are three gates that provide access in and out of the Port;
access to the gates is provided by Boulevard du Cap-Haitien. On-site support facilities
include security and law enforcement buildings, customs, administration, water tanks,
warehouses, and an electric substation (note that the substation is not functioning).
The Port is administered by APN, the national port authority. Current services provided at
the Port include pilotage, line handling, dockage, storage, security, customs inspections,
and cargo handling. Cruise ships have called on the Port in the past. Local artisan shops
(labeled Tourist Village) on site would be used to market artisan products to visiting
passengers; however, there is currently no cruise ship traffic.
The APN currently serves as a landlord and oversees security, harbor master functions,
pilotage and coordination with other government agencies, including customs. Individual
private sector companies independently provide cargo handling, stevedoring, vessel
agency, terminal operations, warehousing and storage functions. There are four tenants
in the Port. One company has a lease over the principal container storage area, and
another has recently financed and constructed a new on-dock warehouse primarily for rice
storage. A third leases warehouse space provided by the Port, and a fourth tenant has a
facility dedicated to cement bagging and storage. Other dry bulk and cargo handling
companies provide stevedoring and bagging services to dry bulk customers who utilize
off-site storage. It is important to note that in January 2015, APN issued a letter of contract
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termination to the company leasing the container handling area. Out of the four tenants,
the other three companies have on-going leases with APN (including the cement company
which extended their lease with APN until September 1, 2017).
3. Neighboring Ports
The CHP primarily competes with port terminals in Port-au-Prince to serve shipping
demand for regional consumers and businesses in Cap Haitien’s hinterland market and
with various Dominican Republic ports for imports and exports serving emerging exportoriented agriculture and manufacturing industries.
The following ports are current potential rivals to CHP: Port-au-Prince in Haiti and
Caucedo, Rio Haina, Puerto Plata, and Manzanillo in the Dominican Republic. Figure 1
above illustrates the relative locations of the various ports competing to serve markets
near the CHP.
4. Competitive Advantages
The CHP’s competitive advantages include the increased potential to offer lower ground
transportation times and costs to reach customers in the Cap Haitien hinterland market as
well as more direct ocean shipping service to and from the United States. Its close
proximity to existing and planned business activities such as the Compagnie de
Développement Industriel (CODEVI) or the Caracol Industrial Parks, agricultural
plantation developments (Agritrans has a confirmed order of at least 60 TEU's per week
from early January 2016), and other consumer and industrial based import/export
businesses enable direct access to ocean shipping services with limited road
transportation distances and border crossings. The extension of the HOPE / HELP law,
which provides duty-free treatments of certain textile and apparel items, represents also
a powerful incentive for the textile sector (active in the two mentioned industrial parks).
While there are numerous advantages to the CHP, one significant disadvantage relative
to other identified port alternatives in the region is its aging, dilapidated infrastructure and
site layout/configuration.
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CAP HAITIEN PORT – EXISTING
SHIPPING LOGISTICS AND
TRAFFIC
The section `below describes the current logistics in and out of the Cap Haitien market
region and the way major regional shippers prioritize routes. These descriptions are based
on the analysis of AECOM that performed an independent market study1 in association
with IHS-Global Insight.
1. Shipping Services and Characteristics
The current shipping logistics into and out of the Cap Haitien market region were assessed
by AECOM as advisors to the IFC and completed in April 2015. The main conclusions of
the assessment are:
Dry bulk vessels carrying rice (typically from Louisiana) or sugar (from the
Caribbean or South America) call to the port with frequencies often ranging
between 2-4 calls per month;
The port has three weekly container vessel services operated by Antillean Marine
Shipping, Haiti Shipping Lines (HSL) and a joint service between CMA-CGM and
Caribbean Feeder Services LTD;
The joint CMA-CGM/Caribbean Feeder Services LTD service currently employs 2
geared vessels with nominal capacities of 645 TEUs and 712 TEUs. This service
provides feeder connections from Kingston, Jamaica a major transshipment hub
in the Caribbean basin. The Antillean Marine Shipping and Haiti Shipping Line
services utilize geared vessels with nominal capacities in the range of 300-350
TEUs and provide direct connections between southern Florida market in the US,
the Dominican Republic and Colombia;
Port-au-Prince and Caucedo ports currently serve large shares of import container
demand for the Cap Haitien market region due to better carrier
frequency/connectivity, lower transit times, and better service reliability compared
to current carrier offerings calling CHP;
The Port competes with Puerto Plata for apparel manufacturing exports to North
America and will likely compete with Manzanillo for perishable agriculture product
exports.
The Port generally enjoys a total logistics cost advantage (including ocean freight, port
fees, and ground transportation costs) within the Northern Haiti market region for bulk
1
That is confidential information and that will be made available to prequalified bidders in the framework of the tender process to be launched.
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products such as rice and sugar as well as grain shipments (bagged break bulk), and
both inbound and outbound container traffic to North America.
The following describes how major regional shippers prioritize route choice factors
according to research and interviews conducted for the market demand assessment:
Regional consumer and business consumption tends to be driven by a
combination of relative costs, economies of scale, and established supply chain
and distribution services in Port-au-Prince;
Raw material imports used by garment manufactures at the Caracol Industrial Park
(CIP), about 30km east of Cap Haitien, seek low cost, single connection routings
from Asia, South America, and Central America. Consequently, they currently
utilize services calling the Port of Caucedo, in the DR due to lack of connecting
service options calling the Port of Cap Haitien;
Shippers of CIP finished products to North America tend to prefer shipping
outbound from Puerto Plata due to economies of scale advantages, including
service frequency, as well as confidence in security and reliability;
Manzanillo is currently advantageous for banana and refrigerated container
exports because of its experienced personnel, history serving the agricultural
export sector in the DR, reliability, and availability of sufficient refrigerated
container plug connections.
Existing traffic at CHP:
It is estimated that in 2014 the Port of Cap Haitien captured only about 40% of the total
container market demand for the Cap Haitien Market Region (5,000 out of about 12,000
TEUs). Even if export-oriented industries do not reach planned short- and long-term plans,
the market assessment shows that there are opportunities to grow the CHP’s market share
by diverting existing Cap Haitien Market Region demand from port facilities in Port-auPrince and the Dominican Republic with improved vessel service offerings and more
efficient port operations.
Table 1 provides an estimated breakdown of existing Cap Haitien Market Region container
demand and current routing. These figures include only full containers.
Table 1: Cap Haitien Market Region Demand: Container FULL TEUs
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Demand Type and Primary Port of Entry
Port of Cap Haitien Throughput
CIP Imports – Caucedo and Rio Haina
CIP Exports – Puerto Plata
Construction Materials – Caucedo
Other DR Imports
Refrigerated Food via Port-au-Prince
Freight of All Kinds via Port-au-Prince
Cocoa Exports via Port-au-Prince
Food Relief Programs via Port-au-Prince
Total
2014 TEU Estimate
5,000
1,000
800
450
520
1,080
2,040
380
790
12,060
Table 2 complements the information by identifying, for 2015, a breakdown by container
type inbound and outbound, which includes both full and empty containers.
Table 2: Port of Cap Haitien Throughput – Containers (2015 TEU Estimate)
Container Type
TEU – Standard Container
TEU – Refrigerated
TEU – Empty Standard
Container
TEU – Empty Refrigerated
Total
Throughput
Inbound (TEU)
4,343
788
Throughput
Outbound (TEU)
314
-
Throughput
Total (TEU)
4,657
788
290
4,009
4,299
5,421
788
5,111
788
10,531
2. Traffic forecast
As per figure 4 below, containerized cargo is expected to grow from ~10,000 TEUs to
~37,000 TEUs in the next 25 years under a set of base case assumptions, according to
the AECOM / IHS study mentioned above. The forecasts show that container cargo will
be the main growth area driven by a rapid increase in agricultural exports (in particular
bananas).
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Figure 4: Containerized Cargo: 5.2% CAGR
Containerized Cargo (MTs)
Growth in general cargo is projected to be on average 0.6% per year, equivalent to 15%
growth over 25 years as general cargo continues to become containerized. Growth in dry
bulk is projected to be 2.9% per year on average primarily driven by continued population
and economic growth, foreign aid support, and household incomes.
Figure 5: General Cargo: 0.6% CAGR
Figure 6: Dry Bulk: 2.9% CAGR
General Cargo (MTs)
Dry Cargo (MTs)
60,000
160,000
50,000
140,000
120,000
40,000
30,072
30,000
136,481
100,000
26,200
80,000
66,566
60,000
20,000
40,000
10,000
20,000
2015
2020
2025
2030
2035
-
2040
2015
General Cargo (MT)
Current Capacity (MT)
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2025
2030
2035
2040
Dry Bulk (MT)
Current Capacity (MT)
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Autos and other vehicle-based cargo primarily consist of used cars being imported from South
Florida. These vehicles are often transported together with other general cargo consisting of used
effects, or freight-all-kind (FAK) on spot services. Since most vehicles are loaded directly on deck
of small general cargo vessels, vehicles are unloaded using existing shore cranes
(construction/jib boom style cranes). Auto and other vehicle volumes are estimated to grow on
average of 3% per year, increasing from current levels of approximately 3,440 mt to 7,200 mt by
2040.
Current container throughput capacity is estimated to be approximately 19,000 TEUs per year.
Based on the above mentioned growth projections, demand for such capacity could be exhausted
in the short to medium term should the port be successful in capturing the additional market
shares as expected under improved conditions. Long term container demand over the next 25
years is projected to require more than twice current capacity levels. Projected demand for
general cargo, however, is well below existing capacity, indicating a miss-alignment of allocated
space for this segment. Dry bulk projections are also expected to exceed current demand levels
but not require as significant a reallocation and increase in capacity as the situation with the
container segment.
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LEGAL AND REGULATORY
FRAMEWORK
Recently, the GOH has undertaken an ambitious port reform program. However, given the
fact that this reform is still incomplete and has yet to be adopted by the GOH, the
Transaction will be undertaken under the existing legal framework. As a consequence,
GOH, APN and IFC will ensure that actions taken in furtherance of the Project do not run
counter to the stated aims of the reform program, and vice versa, in order to ensure that
the operation of the Port as a PPP remains coherent with both the existing and future
framework governing the Haitian port sector as a whole.
1. Responsibilities relating to the operation and maintenance of the Port
Pursuant to the APN Decree (Décret du 15 mars 1985 organisant l’Autorité Portuaire
Nationale), the APN is mandated with the general authority to regulate and operate ports
in Haiti. More specifically, APN (i) is responsible for the management, operation and
development of port facilities in Haiti, (ii) has the authority to establish the tariffs and fees
applicable to port users and determine the terms and conditions applicable to their
collection, as well as to adopt regulations in respect thereof, and (iii) has the authority to
delegate the operation of any of the ports which it operates and to establish the terms and
conditions for the lease or delegated operation of port property as well as any other
property under its jurisdiction.
Customs are regulated by the Décret du 5 mai 1987 relatif au Code Douanier (the
“Customs Code”). The Administration Générale des Douanes, an administrative body
distinct from the APN, is mandated with the authority to collect all applicable customs fees
and to enforce the provisions of the Customs Code. The Customs Code also includes
particular provisions relating to the transport of goods through ports, including the
transport of goods by way of cabotage.
2. Contracting Authority
USAID and the GOH together seek to emulate a Design-Build-Operate-Transfer (DBOT)
transaction by conducting a single, combined iterative market research, prequalification,
solicitation, and negotiation process under the United States Government (USG)
procurement framework leading to the award to a single bidder or bidding group of (1) a
construction contract to be signed by the United States Government and (2) a Public-
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Private Partnership (PPP) contract with the Government of Haiti for long term Operation
and Maintenance of the Port.
Regarding the PPP contract, both the MEF and the APN may need to execute the project
agreement: the APN in furtherance of its role as the public body tasked with regulating
and operating port activities in Haiti and contracting with private operators in respect of
public works or services rendered in respect of ports in Haiti, and the MEF in furtherance
of its general oversight role over public entities within GOH’s structure, including APN, and
in its capacity as the contracting authority in connection with the funding from USAID.
Execution of the PPP Agreement by MEF may also provide comfort to the PPP Operator
that the contractual obligations of the APN such as channel maintenance, maintenance of
common access areas and facilities not governed by contractual arrangements with third
party service providers will be backed by the full faith and credit of the Government,
represented by the MEF.
GOH and USAID are also considering conducting an alternative transaction whereby two
different firms would sign one contract each under two different procurement processes:
A construction firm would sign a Design-Build contract with USAID under the USG
procurement framework and in parallel a port operator would sign a long term PPP
contract with GOH under Haiti’s 2009 Public Procurement Law.
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TRANSACTION PROCESS AND
TIMELIME
The GOH and USAID have engaged IFC to advise on transaction structure and execution.
Currently, the APN, USAID and IFC are finalizing due diligence studies with the objective
of identifying any technical, environmental & social, legal or financial issues and designing
an attractive, sustainable and balanced transaction structure.
We look forward to receiving potential investors preliminary indication of interest, as well
as a statement of any areas of concern that potential investors may have.
An indicative transaction timeline is presented below.
Indicative Transaction Timeline:
Nov 2014-July 2015
Due Diligence
October 2015
Initial Market Sounding
November 2015
Transaction Structure
Approved by GOH/USAID
January 2016-November
2016
Bidding Process
RFQ, RFP, Investors’ Due
Diligence, Winning Bidder
Selection
December 2016 –
January 2017
Commercial Closing
February – March 2017
Financial Closing
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For further information or to discuss the potential opportunity in more detail please contact:
CONTACTS
David Bot Ba Njock
Investment Officer
IFC PPP Transaction Advisory
Latin America and Caribbean Department
Tel: +1 (202) 473 1974
Email: [email protected]
Philippe Neves
Investment Officer
IFC PPP Transaction Advisory
Latin America and Caribbean Department
Tel: + 57 (1) 319 2364
Email: [email protected]
Alix Celestin
General Manager/CEO
Autorité Portuaire Nationale
Tel: + 509 4646 2222
Email: [email protected]
Rose-Lourdes Elysée
General Coordinator
Unité Centrale de Gestion des PPP
Ministère de l’Economie et des Finances
Tel: + 509 3701 6022
Email: [email protected]
[email protected]
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