Container Terminal Cotonou Port

Active

The project was a 25-year concession to build and operate the container terminal of Cotonou port. The government of Benin and the Millenium Challenge Corporation worked together to select a private operator through a competitive bidding process; the winning bidder was the Bolloré Group. The construction of the terminal was part of the deal. Solétanche Bachy of France was contracted for the construction of the quay. Upon the invitation of the government of Benin, three leading port logistics operators were invited to tender. Bollore Africa logistics won the tender, and was to be operating the terminal for 25 years. Bollore aimed to increase container traffic from 312.000 TEU (2008) to 1 million by 2030. When the concession agreement was signed, it was expected that container traffic would double in eight years to more than 723,000. The concession agreement was signed in september 2009. Groupement Bolloré, a joint-venture of Bolloré (France, 75%) and the Société de Manutention du Terminal à Conteneurs de Cotonou (SITC, a local spv company owned half by Bolloré, 25%) won the bid. The winning proposal 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 agreement. It also included an entry fee of US$33 million, ongoing fees of US$29 per TEU, and guaranteed annual traffic levels. The project was also expected to create more than 450 jobs. The IFC was the government's lead advisor on the structuring, tendering, and implementation of the PPP. The port sector reform was made possible with a $169 million grant from the Millenium Challenge Corporation. The funding allowed for the construction of the quay wall behind which the container terminal was constructed.

High