Public Private Partnership Cap Haitien Port Project

Transcription

1 Public Private Partnership Cap Haitien Port Project September 2015

2 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. Cap Haitien Port Project 2 IFC

3 TABLE OF CONTENTS IMPORTANT NOTICE... 2 TABLE OF CONTENTS... 3 KEY TRANSACTION HIGHLIGHTS... 5 CAP HAITIEN PORT LOCATION, INFRASTRUCTURE AND CURRENT CONFIGURATION Location Facility Characteristics Neighboring Ports Competitive Advantages CAP HAITIEN PORT EXISTING SHIPPING LOGISTICS AND TRAFFIC Shipping Services and Characteristics Traffic forecast LEGAL AND REGULATORY FRAMEWORK Responsibilities relating to the operation and maintenance of the Port Contracting Authority TRANSACTION PROCESS AND TIMELIME Cap Haitien Port Project 3 IFC

4 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, Cap Haitien Port Project 4 IFC

5 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: Cap Haitien Port Project 5 IFC

6 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 Cap Haitien Port Project 6 IFC

7 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 5. 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; 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 Cap Haitien Port Project 7 IFC

8 6. 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. 7. 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 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. Cap Haitien Port Project 8 IFC

9 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 Cap Haitien Port Project 9 IFC

10 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: Cap Haitien Port Project 10 IFC

11 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 Cap Haitien Port Project 11 IFC

12 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. Cap Haitien Port Project 12 IFC

13 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 study 1 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 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 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. Cap Haitien Port Project 13 IFC

14 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-au- Prince 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 Cap Haitien Port Project 14 IFC

15 Demand Type and Primary Port of Entry 2014 TEU Estimate Port of Cap Haitien Throughput 5,000 CIP Imports Caucedo and Rio Haina 1,000 CIP Exports Puerto Plata 800 Construction Materials Caucedo 450 Other DR Imports 520 Refrigerated Food via Port-au-Prince 1,080 Freight of All Kinds via Port-au-Prince 2,040 Cocoa Exports via Port-au-Prince 380 Food Relief Programs via Port-au-Prince 790 Total 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 Throughput Throughput Throughput Inbound (TEU) Outbound (TEU) Total (TEU) TEU Standard Container 4, ,657 TEU Refrigerated TEU Empty Standard Container 290 4,009 4,299 TEU Empty Refrigerated Total 5,421 5,111 10, 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). Cap Haitien Port Project 15 IFC

16 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 50, , , ,481 40,000 30,000 26,200 30, , ,000 80,000 66,566 20,000 60,000 10, General Cargo (MT) Current Capacity (MT) 40,000 20, Dry Bulk (MT) Current Capacity (MT) Cap Haitien Port Project 16 IFC

17 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 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. Cap Haitien Port Project 17 IFC

18 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- Cap Haitien Port Project 18 IFC

19 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. Cap Haitien Port Project 19 IFC

20 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 November 2015 Transaction Structure Approved by GOH/USAID October 2015 Initial Market Sounding January 2016-November 2016 Bidding Process December 2016 January 2017 Commercial Closing RFQ, RFP, Investors Due Diligence, Winning Bidder Selection February March 2017 Financial Closing Cap Haitien Port Project 20 IFC

21 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) Alix Celestin General Manager/CEO Autorité Portuaire Nationale Tel: alix.celestin@apn.gouv.ht Philippe Neves Investment Officer IFC PPP Transaction Advisory Latin America and Caribbean Department Tel: + 57 (1) PNeves@ifc.org Rose-Lourdes Elysée General Coordinator Unité Centrale de Gestion des PPP Ministère de l Economie et des Finances Tel: rosel.elysee@mef.gouv.ht rlelysee@hotmail.com Cap Haitien Port Project 21 IFC