I *N> § w rc I ql TO I RRE S TRICTED [REPORTS DESK| Report No. TO-408b I WITllINj I 1 This report was prepared for use within the Bank and its affiliated organizations. | They dc not accepl responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNAI'IONAL ]3ANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOP?MENT ASSOCIATION APPRAISAL OF THE TUNIS-LA GOULETTE PORT PROJECT TUNISIA April 21, 1964 Departmnent of Technical Operations CURRENCY EOTITVATLNTR 1 f T._ _ :_ _ ___ TTP * < 1. Tu nisia Dii .cLaUr v- TJ O Sp z . 3 O 1 U. S. Dollar - G. 420 Tunisian Dinars (420 Millemes) Tonnages of cargo are given tnrougnout in rnetric tons weight. The fiscal year is the calendar year. APPI?UISAL OF TIlE TUNIS-LA GOUI2TTE PORT PROJECT TABLE OF CONTEMTS Pare No. SUIf-TARY i ii I. INTRODUCTION ' IIT. CAE'RAT. RAGCKGsROUND Tlhe Ports of Tunisia ( aTnT) 1) Inland Transportation 2 Adm..nnsratin of the PAv+s Future Port Development '3 III. PORT OF TUNIS-LA GOULETTE h General (-IIap 2) l Iuns 4 (Onld Port) - + Restrictions on Shipping at Tunis Old Port h L.a Goulett \1ilayj ,)j Existing Equipment at Tunis-La Goulette IV. OPERATIOPS Past Traffic Bulk Cargoes o General Cargo e Distribution of Cargo Treaffic between Tunis and La Goulette 6 Operating Efficiency 7 (i) Tunis Old Port 7 (ii) La Goulette 7 Labor Relations 7 Future Traffic Estimates 7 General Cargo 5 Passenger Traffic 5 Port Capacity and Requirements 8 Land Access to La Goulett,e 1:L V. THE PROJECT (iap 3) 1:L General Description 1:L Dredging and Reclamation 1: Roads and Bridges 1: Additional Berths 12 Sheds and Other Buildings 12 Consultants' Services 1:3 Cost Estimate 1.3 Construction and Procurement 14 Town Planning ill Economic Justification 14 Economic Return 1.' Page No. VI. PAST FINANCES AND EARNINGS 16 Charges Structure and Rates 16 Past and Present Finances 16 Present Debt 17 Existing Assets 1l vII. I FUTURE FiViiMNCE 18 VIII. CONCL,USIONS A-ND RECO IYF;NDATIONS 19 APENIDI CES 1. Tuni.s Old Port 2. Vessels calling at Tunis-La Goulette 1957-1962 3. Table of the draft of total movements of vessels using Tunis-La Goulette, 1962 4. RegieIs Existing Equipment 5. Ratio of Cargo Traffic at Tunis-La Goulette to all Ports 1959-1962 6. Analyses of Cargoes Handled at all Ports -1961 7. Analysis of Cargo Traffic at Tunis-La Goulette 1953 - 1962 8. Comments on Certain Items of General Cargo - Past Traffic 9. EstiLmates of Future Traffic, Portcf Tunis-La Goulette - 1963-1971. 10. Comnents on Certain Items of Forecast Tonnages 11. Estimated D stribution of Traffic at Tunis-La Goulette - 1963-1971 12. Est:imate of Project Cost 13. Regie Des Ports de Commerce - Present Debt 14. Regie des Ports de Commerce/Office des Ports Nationaux Tunisiens Statement showi.ng .Estimated Revenues, Expenses and Surnluses .and Interest and Debt Service Coverage, 1963 to 1971 15. Regie des Ports de Commerce/Office 'des Ports Nationaux Tunisiens Estimates of Debt Service 1963-1971 16. Regie des Ports de Commerce/Office des Ports Nationaux TuniEiens Statement of Estimated Cash Flow 1963-1971 17. Tunis-La GoLlette Port Project - Financial Forecasts Bases and Assumn.tions Used 1. xlMajor Ports and Service Areas 2. Canal and Rnad Man of Tunis-La Goulette Area 3. Port of La Goulette Project Photographs i., Port of Tunis (old Port) 2. Port. of Ta (l'ci---tte C QTTVM"A 'DV i. The Government of the Republic of Tunisia has asked the Bank to help firnnce improvir±en's aniu extbnsions a u'iie La Gouleuue part o0. une port system of Tunis-La Goulette, more specifically the provision of' cargo facilities at the e:dsting quay, the construction of two auditionai berths, sheds and warehouses, the relocation of the road access to the port and the relocation of a breakwater. The estimated cost of the project is 'US4111.4 million equ:ivalent, including US$7.0 million equivalent foreign exchange. ii. Tunis is the capital city of Tunisia and is the principal coyamer- cial center of the country. The port serves an area with about 2.2 million inhaboitants, or more than 50% of the total population of the country. It is the principal port for general cargo and during the past few years it has handled 75% of all of the imports, 40% of all exports and 50% of the total traffic of the coun-try. The other commercial ports are Bizerte, Sousse and Sfax. iii. The Tunis-La Goulette port comp'lex comprises: a) the old port of Tunis in the city at the landcTard end cf a shallow 10-kilometer long canal; there are 965 meters of quay used I'or general cargo, jett:Les and dolphin berths for coal and minerals and other minor facilities. The quays are old and of poor design and construction. The mud sub-soil and siltation from storm drains severely restrict the depth of water in the harbor and alongside the quays and have causect con*- siderable subsidence of the quays and buildings in the wharf area. Transit sheds, warehouses and open storagre areas are insufficient but lack cf space prevents any extension. The width and depth of the canal restricts shipping movements to single line traffic. All these factors contribute to restric- tions in the size of ships using the port, to severe congestion of cargoes and to high costs of shipping and cargo handling. There is no way in wlhch the Tunis oLd port could be rebuilt into a modern efficient deen water port. However, because of the lack of facilities at La Goulette most of the general cargo i s still handLed at TiPni-is. b) By about l954. 730 meters of deen water nuav had been constriucted at La Goulette on the North bank of the harbor at the seaward end ol the canal. However_ trans-it . warehouses and other facilitnes for handlin2: gen-er2 cargo were not provided. This qluay is at present used almost exclusively for grain and without the adritionn1 failities cannot handle general crg -in sufficient quantities to afford needed relief at the old port, or to hand1le the exoected traffic growt^h. r nnno.ciiD T.i (Iillt+t+ on +.hnthe cr.h czirlpn trho halrbnrb nf. Qnr n there are bulk faci'lities for the export of iron ore anr] phosphates and a iv. Dui ng the pei od 1953-1962 total general cargo traffic at TuniLs- La Goulette rose steadily by 345,000 tons and is expected to increased-by about the same fiigure during the nine years 1963=971. It is clear that, in order to re'lieve the present serious congestion at Tunis and to hancdle the .1 JLI~,LK-i L41 6~LV CX1 V.'4 cl±.L.L.t -,, ULLJV IZ.A_.L .I.LLISIE L.J ~.Y IU U.:L,' KfJ .L~ UU1 exp,ected -in-cr--ea-se -- in- general -as +rai ,- the exitin -- a -- La T,Goul--tte must be provided with facilities to handle a maximum amount of general ca,rgo and t'InLU Utlhi q4uay ILUOU U eJxteLdeLIUtdeU9 - 4ii - v. 9he project is designed to extend the quay at La Goulette by 370 meters, to provide two additional bert,hs, and to constUr-uct -the Uecessary buildin-s and other facilities in the whole of the wharf area. The capacity of- L: Uouiette will then be about 650,00C tons of general cargo in addi-:ion to substantial tonnages of grain and 7wrine. vi. Corpetent consultants hlave prepared the designs, which are technic- ally sound, and the cost estimates, whichL are rea istic. They wll continue as consulting engireers and will ;uperViEe construction of the project. Tender procedures are being carried out on the basis of international co ipetitive bid- ding. Construction will take about tlhree years. vii. The commercial ports of Tuni.sia are at present operated by the Regie des Ports de Conrierce, a government department. The Governrment will set up a new autnomous body, to be known as the Of'fice des Ports Nationaux Tunisiens, to take over and aclminister the ports., under a charter satisfactory to the Bank. The passing of the law authorizing the! creation of thle Office will be a condi- tion precedent to the effectiveness of' a Banl. loan to finance the project. The Office is to be under comapetent management and to have .ood financial and cost- ing systems. It is to have a port charges structure and rates cdesigned to en- sure that its future finances will be satisfactory. viii. Cash surpluses earned by the present Regie des Ports de Commerce are held by the Treasury in an account for the credit of the Regie. These sur- pluses, which amounted to about T.D. 1.8 million at December 31, 1962, suffi- cient to cover !aost of the local currency costs of the project, are to be made available f'or this purpose. Any further sums needed are to be provided by the Of'fice out of the cash surpluses i-t Trwill earn during the period of construction of the project. ix. The financial forecasts used in. thi-s report are conservative; but evel so, after completion of the project interest coverage will avera-e 1.6 times diurin n the four years l968- 1 971- while debt, service I.-vJrace will avPr2CPe 1 times. The economic return wil1 be about lO5. x. The project is operationally, economically and financiall;r sound and has been acrorded h.i ih rn ori ty by the Grovernment= The project is suIi table for a Bank loan of US4`7.0 million equivalent to be mnade to the Governmnent. A ten nof 25 vpqr!n incliildina 2 t.hree-year grace period, wniilr h be app-oriate. I ImTRODUCTION 1. The Government of the Republic of Tunisia has asked the Bank for a loan to meet the foreign currency costs of improvements and ex- tensi inn at the TA Goulette nart of the nort system of Tunis, amounting to approximately US$7.0 million equivalent out of a total of US$111.4 million equivalent. The rovevrnment wciithi be the borrower. 2. 'The pcprec ons s of ricin of eargo facilities at the existing quay at La Goulette, and cornstructing two additional berthls, t,T hc A !r 1 4 14t1 _ ca ri r+,. +4c v fi .. t'h ; 1 *w+o o - c sheds, warehou.LJ.ses and other9L~&Ok. fa .lite-.jJ.' d..3L11.I.S *Jc I h wse fF la § . WL v Uv _.P J.S prepared by Bureau Central D'Etudes pour les Equipements D'Outre-Mer I(D C E.O.A/,' I dat4ed lrl4A.be -96 and)4 -^ac -92 an -c i -td -nd L .f ~J.V L"L,G %A uIJ~!I~. J7 ' "J U~ I'i..L'L Vr _ .L ~ 1 traffic forecast prepared by Societe d'Etudes Techniques et Econom:iques . e.. r .m .2 1iU ,LA t ly1u.3. fi.La.l illJ,..'Jr. anA data -su- J. I3. by Howell and Company, Accounting CorLsultants, over a period to Janiuary 2, q~~o n - | , - _ m_ _ . _A ~- - _ 2 1__ __:_L___-= 1964; Sand o t findings of 1L a Ban 11mitssionU Wh1h visi Vted TLunsa . n July 1963. II GE!i1 BACKGROU1D The Ports of Tunisia (Map 1) 4. The Republic of Tunisia borders on Algeria to the west and. Libya to the southeast, and has an area of about 164,000 km2. The coast:Line to the north on the Mediterranean Sea is about 300 km and to the east about 1,000 km. The population is about 4.2 million. 5. There are four deep-water ports: Bizerte on the north coa3t; Tunis-La Goulette, about 60 km to the south; Sousse, 120 km south of Tunis; and Sfax, 120 km south of Sousse. AJ]1 these ports suffered considerable damage during the last World War. Sousse and Sfax were rebuilt dwuing the years 1948-54 and have modern facilities, and the installationS at Bizerte were repaired. At Tunis sheds and warehouses were built anid con- struction of a new quay was commenced, but the latter was abandone(d be- cause of difficult soil conditions. At La Goulette 730 rn. of quay wall was constructed together with two small sheds but adequate transit sheds, warehouses and stacking areas were not provided. 6. Until recently Bizerte was essentially a French naval base and handled only 3% of the total commercial traffic tonnage of the fow- ports. It will increase in importance iith the recent starting up of an o:il refin- ery and with the completion of a sugar refinery and a steel mill to be built in the area over the next few years. Sousse handles 5% of the total traffic while Sfax is the main port for phosphates, exporting about 1,800,000 tons a year, and handles altogether about 42% of the totail traffic. Tunis-La Goulette is the main commercial port in the countrv with 75%S of imports, 40% of exports and 50%p of the total traffic. 7. The maini fishing ports are Kelibia, Mahdia and Zarzis and all the commercial ports have a fishing port within their boundaries. Inland Transportation 8. In relation to the size of the country and its population, irland transportation iEs highly developed. There are 15,600 km of roads of which 8.600 km are paved. The total length of the railway system is about 2,000 km of which 500 km in the north is r,tandard gauge (1.4 m) and 1,500 km in the south is meter gauge. the two systems linking up at Tunis. 9. All the ports and their respective service areas are served with roads and railways and there are adequate connecting systems. The roads and railavys are well maintained and could carry a greater volume of traffic than they do at present. Administration of' the Ports 10. The administration of the ports in Tunisia is the responsibility of' the "'iiegie deEr Ports de onmmerce" uhirhi is a divisiorn of t±he Ministry of Public: Works, under the Chief Engineer of the Ministry. The Minister of Plaunni-na sn-nr lWTivmnc,no ictQn-; ent fnononi mnf++Ara +.h, m-r,.QAmyrv acting as Banker. 11. The responsibilities of the Regie include (a) dredging, mainten- a-ce, ma-.r-ki o_- 7 buoy -P of .,n-ncl ral --a - r --nk nY,0,ol (b) pilotage, (c) towage, (d) port commnunications, (e) control of shipping -and cargc; withi114n port, areCas, (f)- po--cyand()tepoilno '.±LUJ.L~.4 WLLML.±.L.WL'L 1 0 , %.L,I J)VJ. U OX=, LLk .1 U O.XJLLU. % e5 UId j.L V~V.LOi.W ~.±J terminal facilities. The Regie is also the Lighthouse Authority on behalf of t-he Goverra,-,ent; Cand cprtsanLd ma-intains ferries f"or t"he Gov.et. cargo. T'hese services are provided by private concerns but at Tunis main- ly by thel! Societe, TuulisieriLe d'Accoliage et de Manutention (S.TA.H.) in which the government has a 500' shareholding. Cargo handling at thie Tunis general .cargo q-uays is not efficienLt . The reasons for th±s are dULs-iUUsd in chapter IV. Charges for these services are fixed by decree of the MiLnister of Public Worio. 13. Tne Budget of the negie de3 Ports does not form part of the general budget of the country but is approved by the Minister of Planning and Finance and is published as an annex to the general budget. The ]jegie levies charges but does not handle its oWn finances, receipts bein-Lg col- lected by the Customs Department and paid to the Treasury wnich mikes all disbursements. Past years have showm cash surpluses, which are held by the Treasury on behalf of the Regie, amounting to T.D. 1.78 million at December 31, 1962. 14. New accounting and cost systems have recently been instituted by a firm of Certified Public Accountants based on an existing punch card installation. These systems are uncomplicated but are capable of develop- ment and will provide adequate costing information and data for Management. -3- The same firm is also training Tunisiani accounting staff and will re-tain one of their representatives at Tunis to consolidate and develop the procedures, at least, during the construction period of the project. The accounting clepartmernt should be efficiently run. 15. Until recently the Regie operated Tunis-La Goulette througnh a local admini.stration known as the Tunis Marine office, while at the other ports operations were supervised by the District Engineers of the Mindistry of Public Works. There was no clearcut line of demarcation between the administration of the ports and that of the Bridges and Roads Service of the Miinistry of Public Works. The development of the Ports of Tunisia has required a change in adrninistration ancl as of January 1, 1964, the Regie has been separated from the Bridges and Roads Service. The overall direc- tion is still under the Chief Engineer but a port manager has now been appointed tc, each of the four ports ancl a management staff has been .set up for the Regie in three divisions (1) Adrini.stration (2) Engineering and (3) Finance and Commercial. 16. The Government intends to complete the separation of port manage- ment from direct departmental control by setting up an autonomous Authority, to be known as the COffice des Ports Nationaux Tunisiens, to take ove:- and. onerate the commereial norts in Tuni sia. The Government has submitted a draft charter to the Bank w¢hich has suggested certain amiendments. The Government. has agreed that (a) as a cornditiori of effPe-tiveneess of theB loan- the law authorizing the creation of the Office shall have been duly enacted; th) +.h-q+. +.hr-, eh_-r+pro chAnl lIhp czn+.i :r r:r. +. .ho rIn-irornmpn+. -nnrl +.ho R:>n?n - and (c) the Bank will be consulted before the appointment of a General Manager, dur-ing the early years of the Offnce's existence. Fut ture Port Derelopment 1I7. .lte pr.senUtLU proJectV . VLI .AJOU Vt f pase0 tDI v Gvn t plns to develop La Goulette to take over as much as possible of the traffiLc now. hand1led -t T- s old port a An t CULt.L ULV 1 te expected gg,enr. i g-neal cargo traffic. Prcvisional plans have been drawn up for future extensions -1 A MIhe presen fisir -ort at l.a Go -'Iette - .1 1 be- 'sp laceI lanAer .L-. ~~~LIJU P4 0±'' L.0..Lk ..L U cL x 4.'j'J.L Uv" .?0~ w....L-.I LJ; U4.0r.0.~'.Lo '4A JLO.L the project and construction of a new fishing port on the north side of tIhe exi stng brealnate r hias alreadyU starLtLUeU. TLhis is not' part' of tL he project and will be financed by the Government by a separate budget provision. 19. The Govrernment intends that, so far as practicable, increases in, the internation.al trade of the uuw±t,ry shall be accommodated at portis other than Tunis-La Goulette so as to improve the economic situation in o ther areas. In particular thre Goverrinent is now studying the feasi.bility of constructing a new port at Gabes to serve the southern part of the country. The Government has agreed that the Bank will be consulted concerning future proposed programs (including financing) for the construction of new ports and the expansion of existing ports inthin the jurisdiction of the Office. -1 4 - III PORT OF TUNIS-LA GOUIETTE General (Map 2) 20. Tunis is the capital of the country, the largest city and the main commercial center, with a population cf about 500,000. The port of Tunis- La Goulette serves an area with about 2.2 million people or more than 5q(aJ of the total population of the country. However, it is the worst of all the ports so far as modern deep-water port. facilities are concerned. 21. The port consists of the old port in the city of Tunis at the landward end of the shallow Lake of Tumis and the more recently developed harbor on the coast at La Goulette. TIunis is approached from the sea at La Goulette by a canal about 10 kilometers long, having a depth of about 7.5 meters. The tidal range is insignificant. Tunis (Old Port) 22. Detailed information regarding the old port is given in Appwendix 1. The quays were built more than 50 years ago and have outlived their economic life. Foundation conditions over the area of the old nort are very noor, making the construction of port works a difficult and very expensive matter. The draft nf shins usRing thep nort. -i r:PvPrPlv rqtvrirt.Pd hv t+hp t9n1th 1o which the basin can be dredged and by the depth of water that can be main- tained in the r-anal - Shore faclitie± are inaerlpunte and lack of space precludes any possibility of improvement. It is inadequate to hand:le the presert and fut,-+-e traffic and i8 1-^1nhlo rvf' nto- a -A --- deep sea port. Restrictions on Shipping at Tunis Old Port 23. The numbers of ships calling at Tunis and La Goulette and the average -et registered tonnage for the years l957-l962n are give in 1en- dix 2, and a table of the draft of vessels at Tunis and La Goulette in 1962 is contain-d in Appendix 3. entered Tunis old port each year. The average net registered tonnage has decreased from 1,250 in 1957 and 1958 to 1,070 in 1959 to 1962. irn 962, out of 2,802 ship nmovements through the canal, in 84% of cases the ship Irew less than. J2L meters (18 feet), and in only 31 cases was thke draft g-eater than a meters. These figures illustrate the effect of the limitat:ions on the draft of ships using the canal and. Tunis old port Inposed by tne Lack of depth of water. 25. By contrast the average net registered tonnage of ships using La GouLeUte LiLncluding Rades in i962 was about 2,700, tne average cargo being nearly 3,500 tons with 109 cargoes of more than 6,000 tons. La Goulette (Map 3) 26. In. 1949 plans were prepared for extensive construction of berths and facilities at La Goulette. By abcut 1954, 730 m of deep-water qjuay, equivalent to five berths, with a depth alongside of 10 m at low water had been constructed on the north bank. This quay is equipped with standard gauge rail and with crane tracks, 7 quay cranes, and two small sheds. 'These facilities are in good condition but no furtiher work was done; adeciuate transit sheds, warehouses and other necessary installations are lacking and the ls.nrl in the port area has settled r3nn,ierah1v in plracs. Thesie Clef- iciencies prevent full economic use being made of the La Goulette cquay and rel±eof of ronest,io n ay t TunAns olr7 ort-I 27. On t.e soUthern, Rades, side are three dolphin berths for bul. petroleum, iron-ore and phosphates respectively which are privately operated. There gis also an 2 ln qn y with 4 i, J m depth of ,sr w4,hich ris nr.v. used for unloading butane gas by pipeline and for mooring dredger barges and ships a.-4qe4 nr.grnr pssage th the car.al1 ELx s4ir4 -- uipment a' Mu^i- T-A Goulette-- 2Q LA.il ol^ the ReA.' LAtiln atSA T^is-.O 0oulett areu Lies in$J .LL SAJJ £L,iLJ. U.LA.Llb I.:1, J.alLLLL3 %LJO0. UV U EL.. I. Ii CLJ. ~Uc- U-1- J. I U111- flL~.1- o zq 1put--- iLuLL.L-LEL U0Uu7 A, dL.Iu rLVt-1 LLU Appendix 4. The s-tevedoring firms are responsible for providing adequatle cargo lhandlig equipmenit, but the Regie owns the q-uay cranes and sonie mubile cranes and power lift trucks wlhich aro hired out to the stevedores as required. The floatiJg equipment is more tn aiequate and althuugh sume OI it iS old there is no necessity to replace any of it during the next few years. !v. OPERATIONS Past Traffcic 29. iniformation as to past trafflc :Ls contained in the following appendices No. 5 Ratio of cargo traffic at Tunis-La Goulette to all ports 1959-1962. Hlo. 6 Analysis of cargoes handled at all ports 1961. Ho. 7 Analysis of cargo traf:-'ic at Tunis-La Goulette 1953-1962 by categories. No. 8 Coimments on certain items of general cargo. 30. The exports of the country are handled at the ports servin- the areas of origin. For example Sf'ax handles the largest individual category of' goods, about 1.8 million tons of phosphates, or 90% of all phosphate exports of the country. Sfax, however, had only 53% of total exports, lc of imports and 42% of total traffic in 1961. On the other hand in 196;1 Tunis-La Goulette handled 6%' of all imports, 40% of a:Ll exports and. 50% of total traffic. During the four years, 1959-1962., Tunis-La Goulette handled an average of 75%o of all imports, 4.o of all exports and 50%j of the total traffic of the country. These figures,, particularly those of imports, indicate the predominance of Tunis as the commercial center of the country (appendices 5 and 6). - 6- Bulk Cargoe3 (Appendix 7) 31. The bulk cargoes handled at Tunis-La Goulette are accommodated at wharves withl specia:L bulk facilities (\lap No. 3 and h These cargoes consist of -iron ore and phosphates exports at La Goulette South the Mineral Quay at Tunis. Fuel oil for the power station is discharged at La Goue;tte North by pipeline. General Careo (Appe.dice - 7 -n 8)3 32. The tonnage of general cargo andlied at Tunis-La Goulette in 1653 was approxinately equal to that of 1938, the last full pre-war year. Between 1953 and 16c2, however, there were conEistent increases until 1961, withn a slight fall in 1962 due to a reduction of about 100,000 tons in cereals. The increases from 1953 to 1962 are sunmarized as shown below. In the second column cereals and wine are excluded as being of a bulk nature and requiring facilities different from those for genTeral mixed cargo. Total General Cargo General. excluding cereals Cargo and wine (Tons) (Tons) 1953 747,Coo 5.-,2,000 1961 1,165,000 652,000 1962 1,092,000 687,000 Increase 1962 ove:r 1953 (9 years) 345,000 155,000 % increase (9 years) 46% 29j% Distribution of Cargo Traffic between Tumis and La Goulette 33. The distribution of cargo tonnages at Tunis-La Goulette in 1962 is given below (see also Appendix 11): '000 Tons Tunis Cereals, wine, cement and timber 240 General Cargo 477 Minerals and hazardous goods 96 813 725o La Goulette (North) Cereals 263 General Cargo 49 312 287 1,125 l00i,, La Goulette (North) Fuel oil for power station 90 La Goulette (South filk cargoes 1,215 Iron ore, phosphates and other bulk petroleum products 1,148 2,363 -7- Operating Efficiency (i) Tunis Old Port 34. Port operational efficiency- is impaired by: (a) Restriction of the size and draft of vessels; (b) Lack of shore space and facilities; (c) Inefficient ancl cumbersome cargo handling and Customs procedures; (d) Low berth occupation ratio imposed by single-lirLe traffic in the canal. 35. Trhe Government has agreed that the present cargo handling and Customs procedures wfill be examined and that it will establish, within a reasonable time, appropriate regulations consonant with good operating efficiency and security. It has also been agreed that the Governnr.ent will grant to the Office authority to enforce the regulations for cargo handling. 36. The average occunation of all berths at Tunis o'ld port in 1962 was 46%, while at the South and Suet quays, marked e and f on photographi 1, whir,h have the hbest; fanilities, it wnq ql%. The? avPrage tnonnage pnr meter of berth was 700 tons. In the circumstances these figures are good. (ii) La Goulette 37. In 1962 general cargo at La Goulette amounted to only 50,000 tons because of the de t-firen e i r. agenera': car farc I iiti e scribh in paragraph 26. The main traffic is in cereals and up to three full berths arne occu pied in 1 n l-ac; ng, n1'I bag4nn 0+ op nnsoa of gin. n This use of valuable berth and wharf space is uneconomical. Labor Relations 38. Dock labor is employed by the stevedoring firms and the Regie has nro dir-ct co-trol over labor relatins There is n h ry of u labor unrest in the past. Trade unions are becoming better organized ar.d responsibIDle andL thlerle is a labor SU-MurlUS. The- goer,ent cons.lder,; ~.J. 1. &1 L~.~4 * 4~t4 )J .L L&1~- r V ±-L.LUIL iU J LL.LJ" that labor relations with independent stevedoring firms are likely to be! smoothe --. 4 wo- 'd be 4the case .-th a , goverrmnient 'LAoit ar. that lEor WJ$ LJJLL'A q.LC4LI "%JU.JUL ~V UIIV wJVA.L CLL ( rJVVV M±AL L4 L t 1AU1AJJ. WiU 14dl' .L(.L"J. unrest is riot likely to interfere materially with port operations. Future Traf'fic Estimates 39. An analysis of estimated future traffic at Tunis-La Goulette for the years 1963-1971 is given on appendix 9. These estimates have been pre- pared by S.E.T.E.C. They have examined all the main categories and have considered all the actual and probable industrial developments and -5rends that may occur. They have also considered the probable effect of the Govern- menrt's development program, b-ut were the objectives of' that prLgr,i_ appc u to be over-optimistic they have made adequate allowances. SETEC's repori; and forecasts of traffic at Tunis-La Goulette have been accepted by the Gov-ernument, and may be considered to be a reasonable forecast of traffic up to 1.971. Total traffic at Tlunis-La Goulette is expected to increase by 472,000 tonS from 2,363,000 tons in 1962 to 2,835,00O tons in 1971, or 20% over nine years. Traffic studies and forecasts for the ports of Bizerte, Sousse and .fax have not yet been made and the rates of growth at those ports have not been estab- lished. However, SE]TEC have stated that they do not anticipate anyr decreases and the financial estimates for those ports have been conservatively projected at the 1962 level. Comments of certain items of forecast tonnages are given on Appendix 10. General Cargo ho. amitting fuel oil for the power station and coal, coke and. minerals, the traffic handled at general cargo wharves at Tunis-La Goulette is expected to increase 'by 3h4,(00 tons over the 1962 figure of 1,064,OCO tons to 1,lh09,000 in 19'71, or by 32% in nine years. This is at about the same average rate of increase as for the previous nine years, L953-1962. However, most cf the future increase is expected to take place during the five years, 1966-1971, i.e. 310,000 tons, or 28%, over tne 1966 figure of 1,099,000 tons. PassengRer Traffic hi. Since independence. 1957, passenger traffic has generally declined from 147,00() to about 70,000 in 1962. However, the Government is already taking steps to prormote the tourist industrv, for which the countrv and climate are well suited, and further development of this sector is planned in the 10-year "perspectives." Consultants estimute that bv 1971 about 120,000 overseas passengers (total in and out) will use the port facilities Pt Tunis-La noulette, apart. frorn so thouni dsin. calling on -r1iiie qhipns l2. Durng 19fi2 52% of the total passengers arrived or departed dnlnlg the thnree months Jul.y-September. On thiis basis over 60,000 passengers may be expnected to pass through the port durinrl that period in 1971 TheD pnre!sernt passenger terminal is at Tunis old port and is inadequate. Passenger ships -41" b dlverted 4to Ta C---tt ^-- -4--le;o of the 4 rojecB ^nd smo4er- adequate facilities for passengers are the-refore necessary. Port Capacity and Requirements 43. BuLlk cargoes handled at special facilities at La Goulette South., i.e. br-ulk petrole-u,,m products at ,he oiL Uharf, iron ore arid phosphates) are ignored for the purpose of assessing port capacity and requirements, sinc.e they do not occupy general cargo berths and these bulK facilities are not suitable for general cargo. - 9 - Wl. 1k, to the nresent time the 0uavs at the Tunis basin have been over- exploited and congested while those at La Goulette NJorth have not been fully qsed. Tn 1962 Tinis handled 671 of all= the peneral eargon nlus fuel oil for the powNrer station, while La Goulette handled only 33-7. Excl-uding fuel oil the figures arr- 72' and 2PR resnective]v )L<. The Office des Gereales, a fnancinlily autonomouq public body set up by the Government of Tunisia in Aporil 1.962, has plans for grain silos and equipmenr t+ T. La Gl ++ in +nnc non with cerfieal st+ora"ger and .~~~~~~~~~~~~~i co j, y- ___ v. - - - - - -E, - _v 1E merchanting cooperatives which have a representative on the Board. The Government has provision for grain silos in it developn lam.nA intends that the ports will not finance this investment. 3y construction of lthese or other adequlte facilities one berth can handle all blkll grain anrd a onsiderable voluwe of general cargo. 46. Consultants estimate that, upon completion of the project and if b k, diii J I acllules are pro vided as ref. erred uu in par agr ap , le seven berths at LEa Goulette wrill be able to handle 648,000 tons weight of general cargo, at an average! of approximatel-y 600 tons per meter, in addltion to fuel oil for the power station, olive oil, wine and -rain wh-ich are of a bulk nature and care estiiaated to total Lt76,UU0J tons in 1967. Six hunczred and forty- ei,lht thaouszLd tons are equivalent to approximately 100,000 tons fcr e'acl of rive berths with rather less for tlhe passenger terrmlinal and grain be:rth. Total traffic expected to be handled at th-e La Goulette ITorth bertlhs in 1967, assuraing cormpletion of the project and the provision oi- bulk grain facilities, by the end of 1966, is allocated approximately as follows: Olive Fuel General Berth Grain Wine oil oil Cargo Toa-;al 1 15 145 100 250 2 15 l 100 1.6 3 15 100 115 it (Passenger Terminal) 15 68 33 5 15 100 115 6 100 190 7 25 60 355 25 , 7 1 145 64h 1,121i Consultants also estimate that, if the proposed bulk grain facilities are! not pronidel and if grain continues to be handled as at. nresent bert.hs 6 and 7 winll. be ulsed. for this traffic, at an average of 255,00o tons a year, th.1US reducinrg the ge.neral carg1 o capacity of La Goulnette i\ortn by 180n000 tons. - lc' - 47. Appendix 11 gives the distribution of traffic between La G(oulette North and Tunis old port for 1962 together with the estimated distribution for 1963 to 1971, assuming that the project is carried out and bulk grain facilities are provided. This shows that in 1967 approximately 62,' of the total traffic of Tunis and La Goulette North will be handled at La (Goulette, but this ratio will decrease to 71% in 1971 if no further extensions are undertaken at the latter. 48. The tonnage to be handled at. Tunis old port general cargo wharves in 1967 will be about 155,000 and could be accommodated at the South Quay, with its quay cranes, rail tracks, transit sheds and ample storage areas, and the contiguous Suet quay (Photograph 1, e and f). These two quays total about 365 meters giving h25 tons per meter, which is a reasonable figure. In addition, there will be about 96,000 tons of coal and coke, minerals and hazardous cargoes at the mineral quay, aiving a total of about 251,00O tons remaining at Tunis old port in 1967. 49. If the volume of traffic at Tunis old port were to remain at about 25.00 tons. use of the West and Morth Ouavs could cease. -viith substantial savings to the Office and other benefits. However, this figure wi:!l increase steadily to about 5q0n0o;0 tons hy 1971 unless further extensions are under- taken to the facilities at La Goulette!. It is the intention of the Govern- mnnt. (A) +hAt the useP of thpe nort facilitti-s at Tunis o nld nort will evnnt.uallv be reduced to a minimum and that the maximum amount of traffic will be diverted to La Goulette arnd (b) to this end +tr iinrerv.tnlt fuit.he develo mmnt and extensions at La Goulette after completion of construction of the present project. The, -orrrman# 1 has agreed that cor.r. .ui ng4 naie T,.r11 be 1rIr- taken of the traffic growth and trends at Tunis-La Goulette to establish thLe extent ,dnA pain- of suc,h ^,r1t er develoent By, -- a o ilu atin tentative cost estimates for a further five berth extension at La Goulette, ri e period 19 171, are ricludel in thU1ie cashll fLU.V sL2taUte1miet, AppdL U . >0. Thli'e es"m'-ates of genera' ag ,egttr,g aat irnl paragraph 46 are reasonable initially but the adoption of, and increasing experience in the use of, mFoUern LcarU-hArlU_Lin UecLqUts woQLd probably result in a greater volume of cargo per berth than has been estimated. M¶.i- f¶L411 - _.L L.--,4-J.34 - - Z- D - -1 , _.- - 1 1- - Thwe Governmentl hi-as agreed utau coli.ti-LMULUg sUUdUi es UtoLUiULiAjU0 w .L:L bUe undertaken and improvements adopted tc ensure the maximum utilization of the ports, partic-ular-ly at La uoulette, before plans are formulated for further development. 51. Consultants are conducting an economic study of the feasibility of diverting grain traffic to Bizerte, wnicn will be considered by the Government. Bizerte has elementary f'acilities for handling grain but further investment would be required for efficient handling. Should grain be diverted to Bizerte it would not adlversely affect the Regie's finances, since the revenue from this traffic would accrue to Bizerte instead of Tunis- La Goulette. It would have the advartage of increasing the general cargo capacity of La Goulette to take a still greater proportion of the traffic now handled at Tunis old port. The Government has agreed that adequate bul'k grain-handling facilities will be provided at La Goulette, or at Bizerte should the grain traffic be divertesd to that port, and that no part of the capital cost of those facilities will be charged to the Office except as may be otherwise agreed between the Gcovernment and the Bank. - 11 - 52. There is no pattern of seasonal peaks in general cargo tonnages which tendi to be spread evenly over the year. The consultants consider that this will not change materially in the fu+ure and that there is there- fore no need to provide a margin for peak" periods. Howrever, this question would only affect future development. 53. There are no settled plans for further extensions at La Goulette, but they will probably be on the lines indicated on Map 3. However, the siting of' future extensions will depend to a large extent on th- future of the iron ore and phospha'tue traffic, since the Rades side of the La Gotilette harbor will become available for development to a greal;or or less degree during the 1970 decade, depending upon the decisior as to exploitation of the newr phosphate deposit near Kalaa Djerda. Land .Access to La Goulette 54. Earlier drafts of the project included provision for (a) wVidening, improving and restoring the level of the road paralleling the cane.l between Tunis and La Goulette, (b) a new ferry boat of a larger capacity to take freight vehicles between La Goulette North and La Goulette South (Rades), (c) construction of new ferr;- terminals and road access. The estimated total cost of these items excluding engineering and interest durirng coIn- struction, was about T.D. 0.15 million of which T.D. 0.31 imillion (US$O.7L mil:Lion equivalent) was foreign exchange. 55. The Government's view is that these Investments are the respon- ibi:litv o.f the Ministry of Phbl r. Works Bi- dges and Roads NDvi sicrn which is competent to carry out the construction work on the road and the ferry termiina:Lsj with its town techri nial resources aS budget provis,o!ns become available. The Government has agreed that it wrill constr-uct access roads necessary for the efficien;t opera+.ionP of the project and wjill maintain and repair such access roads. V. T _ PROJECT (Map 3) General Description 56. The purpose of the project is to permit the diversion of a consideralble portlon of the gra trafc4 now being a+v It'isv by developing and extending the port of La Goulette. Two additional b_ert.hs lh-Till' b se const-ru+cted an.d thes, e +ogether .-th th+ eeistin.g be r + aS will be provided writh transit sheds, warehouses, passenger tendinals, worldn i arearQs and offic-er Jbuildirgs. Road access +- +V port w l-' b relocated and the road and rail system in the port area extended. The and teLU.L ecmU Vniatos eupn will 'v X-vW 'be preovcid eUd. and telecommunications equipment will bea provided. Dredging and Reclamation 57. A considerable amount of dredging and refilling will have to be done to give the various structures solid foundations and the port a suitable lay- out. Abou-t 50,000 m3 of mud and silt have to3be removed and disposed of out- side the harbor and approximately 1,2100,000 m; of sand and gravel have to be hauled in barges from Qued Soltaine, 20 Im south-east of La Goulette, and used for road constructiLon, elevation of existing areas and reclamation of new areas. Roads and Bridges 58. The project requires and includes the re-siting of a fishing channel to the lake, (A on Photograph 2), the re-location of the Eastern stretch. of the Tunis-La Goulette road and the construction of two reinforced concrete bridges. one for the road and one for the railwayv over the new fishinp chan- nel (Map 3;). Additional Berths 59. The existing 730 n of quay will be extended another 370 m eastwards ton provide +two more berths for general. cargo. The depth alongside, the new. berths will be about 12 meters. The new berths will be equipped with necessary +tra.sit sheds, rail and ^r >e +racksr ~nd cus~+oms, Pence nar. the stacXi1ng are inside the custom's fence will be paved. The old fishing channel and the exist- -;-- --Ain£ a -- -avy basi will be leA A%CL~ LVY pLJ± LQ. V d4JLJ. L UA.1 IdL±_ 7.fUI JI ~O 41 t dI L'~ d UV. I:rsie te port area approx4m,atel,y 9. uo wo, Lthreel ar.dU four Glane_ roads will be constructed and about .ltO,000 m2 of open storage space will be paved. The greater part of the ports 60 ha. transit area will be filled to about 2.5 mr above the water and leveled off. The area will be equipped with necessary drainage,water mains, fire nydrants and electrical distribution cables, Sewers will also be provided and connected to the existing system in La Goulette. Sheds and Other Buildings 61. Seven concrete transit sheds will be constructed on the existing and new berths, each with a floor area of 4,000 m2. One of these sheds will have two stories with a 1,70 m2 reception hall for passengers on the second floor. Three warehouses wi.th 2 rnm.nhinPd are2 of 9,000 m2 and various auiiliary 1build ings will be constructed. 62. A new four story administration building with a floor space of 2,500 i2 Js to be erected in the central part of the back Cea. onsiderable settle- ment will undoubtedly be experienced in the area now occupied by the! old fish- founded 'onl cOncree ple se soi l codto allnw maj.r Uil6O wi'' be founded on concrete piles. - 13 - Consu14tar4--V Se-c- 63. T,LID UUv J. haL.s agreed toer.ply '-'J ns actb to the Bank, to provide services in connection with (i) design and supervision of CUist;lUct ,jU USL U1 (I1 pI UJOUGL \±±J d±J. U D LQUUL_ I-JU ±±l XUt Uc% LV l- , k-L}.L LJUU.L handling of grain, (iv) port charges structure and rates, (v) cargo handling and Customs pi ocedures, (vi) costiing anld financ,al systems andU trair 0g af accounting and statistical staff of the office. The costs of these consultant services are included in the project. Cost Estimate 64. Tile estimated cost of the project is T.D. 4.79 million, US.lL.1 million equivalent. The necessary foresign exchange would amount to US$71,0 million. The cost estimate includes 10 percent provision for constructicon con- tingencies. Interest on the Bank loan during construction is also included. The cost estimate, which is based on final engineering, is considered to be realistic, and is given in Appendix 12 separated as to foreign exchange and local currencies. The following is a Summary of this estimate: Total Cost US4 Equi.v. Item T.D. Million Million 1. Dredginlg, demolition and reclamation 0.756 1.80 2. Roads, bridges and rail tracks 0.777 1.85 3. 370 m new quay at La Goulette 0.h29 1.02 4. Sheds arid other buildings 1.188 2.83 5. Fencing and utiLities, fire fighting equipment and teslecommunications o.689 1.6L 6. Relocation of breakwater 0.252 o.60 7. Miscellaneous 0.177 0.42 8. Consulting services, engineering design and sunervision 0.286 o.68 9. Interest during construction 0.235 C.56 Total: 4.789 11. 40 65. Construction will start at the beginning of 1964 and should be finish- edr by 1.the enri of 196;6. Empendi+tire is sethp1ii1pri aqnnrnirmqtr'.1v as follows: Local Culrrency Foreign Currency Tnt.al Million Dinars Million US Million Dinars IIillion US$ 1st year 0.500 2.300 1.470 3.49( 2r. d ye ar 0.676 0 2).20 1.6 A00 I P-.1( 3rd year 0.672 2.500 1.719 4,lo() 1.848 7.000 4e789 ll.0() - 14 - Construction and Procurement 66. The design and tender documents for the construction of the i)ort of T:t J''.tehv ---- prepared A, B'-- a Centra A'74-,des- --u I- q-.ee LJC .A -L K- VU U LICLVt- IJ VVL1 PIJ U9O.J. K-U IJJ AJU.JL tC,LL J~L W U I ICYLL U WV ULAU~ HU PJUI JLUD AJ\J'LL_LJ)U,ets.~i d'Outre-Mer (B.C.,E,O.i.). International bidding is being carried out under sa- 4. #lL ¶2 2 1 1 .tC T .I... - L- -. L- ti.sfLacto-ry rce-- -t no con'trac-t has yeat bueen awarded 67. The I L1s ry dof ruublic WksbW±± u--lb respornbule for thce IU Cu. UbiL1 0o the project acting through its Chief Engineer. The present consulting engi- rseery B<.C.E Oi be the residerLt engincers in charge of the supervision of te-constMetivon. Town Planning 68. The port development program for La Goulette is co-ordirated wTith the re-planning of the town of La Goulette. Economic Justification 69. Possible Alternatives to the Project. There is no economic alterna- tive to fitting up the present La Goulette quay. The position of Tunis as the capital city serving more than 50 percent of the population and the main, al- most only commercial center makes it impracticable to divert to other ports the general traff:ic now using Tunis. Those other ports, particularly S'ousse and Sfax, already handle most of the general cargo traffic for their respective service areas and are too remote from Tunis to take any of its cormercial traf- fic. At [Bizerte, the facilities at the commercial port are not adequate to take any large increase in traffic and will shortly be occupied tc the limit of capacity following the industrial development in that area. Tunis-La Goulette wil: continue to be the major commrercial port of the country. 70. Present Conaestion and Traffic Growjth. The urgent necessity to re- lieve the congestion in the Tunis old port and to avoid stagnation. in the port and damage to the country's economy is clear. The orovision of transit sheds and other facilities at the existiing quay at La Goulette to provide five gene- ral cargo berths is long overdue-. Tn addition, the deve1onpment of thpe nointrv't economy will result in a substantial growth in traffic as a whole, particularly in genera'l cargo An extension of berth capacitv is needed to relieve the pressure at Tunis and to keep pace with traffic growth over the next few years. Without the YpAns,i on Of the nort the existing fni Ii ti es woiil d bh satuurat.ed in the near future and the general economy of the country would be seriously 71. GovIernmenr+ Plannin-g In its threeIyer plarn and ten-year perspect= ives the Government has rightly given high priority to development of the port n4. t f.n G u i i J.¶J T9 U tfl.. 170. Specifi P4 conomi4c BOene`fits (a) UV-nss in shipst time and canal 'ees and cargo harnu,sUuz costs. ±rie5re WiLl be apprUiLMnably O6,0uu0 bUuri of eargo udiverl;eU Irom Tunis old port to La Goulette, made up of the general cargo capacity at La - 15 - Goulette, ,S48,ooo tons, less the present volume handled of 50,000 tons, plus 75,000 tons of wine. Consultants have esTiimated, from actual examples, that these savings amount in all to a little less thar T.D. 1 per ton, T.D. (.150 to the ship and T.D. 0.840 for cargo handling inclucing ship's stevedoring. Taking a conservative total figure of only T.D. 0.750 per ton the annua]. bene- fit will be T.D. 502,500. (b) Additional Transport Costs. The above benefits will be reduced by additional transport costs of the traffic moving between Tunis and La Goulette, which are estimated at T.D. 0.160 per ton. Of the total of 60,o0o0o tons diver-ted approximately 500,000 tons may be subject to this adritioial cost, making a total of T.D. 80,000. (c) Possible Size of Other Savings. Execution of the project; would produce savings in dredging and maintenance cost of the canal and of the Tunis old port basin, since the traffic remaining atthat port can be carried in vessels of up to four meters draft. In addition dredging of the canal is a contributory factor in subsidence of the railroad and highway and cessation of dredging wrill provide some savings in maintenance costs. The sum of these savings is estimated at T.D. 160,000 per annum. (d) Net Economic Benefits. The net economic benefit may therefore be taken as T_DT T227O00 per annum if only the direct savinas. shinsI time, cargo hand-Ling and transport costs, etc. are counted. With the maintenance savings the total bcenefits perr onnnin w hulb ahout, T.n= 582j5o._ PWnnnrnnir Rot- 73. he eT fcil+ie at. La Gonle+te wouldf be3 operatn at full capaclt,'iu and the above benefits would accrue, immediately on completion of the project. Projectd -overp the e ao+e--4 economin c 1; I Ai n+' of t" af )a n'-A +V-e di rect savings of T.1). 422,500 represent an economic return, on a total project u cosIt of T. a (7 r,;i.i'7ion, of8 pecetin the firs year. , WLJeL_ oni ttal b-U u nefits of T.D. 582,500 the return is 1I: percent. As experience is gained a±IU cargo hU E"IU.jing' ±AiqJ1V veU tLIhe UJ savir,gI, toLV.Ll ehe UL wit the IAIt econo,LiulWc re- t-rns will increase. 74. IB themselves, these benefits justify the project. In addition, the U.'. V tZU .L%J11 '.LU OJAII', U ro -( U, UU'J U±V ) i %Ul.i. UA .LCL ± ' AL U~LI~ I UJL-LO U±U I.)L,u u~_ W"UtL'l berths at ILa Goulette will enable larger, more economical, ships to be used to carry this traffic. This ben:efit canulot be measured but is clearly consider- able. 75. The project will reduce the cei.f. cost of gereral exports and im- prove their competitive position in world markets and at the samne tuLme lower the delivered costs of imports. 76. Upon completion of construction ownership of the project will be transferred to the afice upon terms and conditions acceptable to tihe Bank. - 16 - VI. PAST FINANCES AND EARNINGS Charges Structure and Rates 77. The principal charges assessed against the vessel are for harbor dues, an.chorage, pilotage, anud tiowage. Ships are also charged whLifage cir cago loaded and discharged and on passengers. The main charges assessed directly against cargo are open storage and warehousing. There -are no berthage dues. Stevedoring and cargo handling are not functions of the Regie and will not be taken over by tne new body. The last general revision of rates was in January 1952. Ships dues were increased in 1953 and 1954 and wharfage in 1958. Charges for storage and warehousing of cargo and passenger dues have not; been revised and there has been no change in the charges structure. Charges gene- rally compare favorably with those at other North African ports. All charges are fixed by decree of the Ministry of Public IWlorks, including stevedoring and cargo handling charges levied by the stevedoring companies. 78. There are disparities between certain charges at Tunis and La Goulette which should be discontinued upon completion of the project and. in general, the charges are not related to the costs of services provided. Con- sultants are about to commence a study of the whole charges structure and rates of the Regie in conjunction with actual costs and will make reconmmeradations as to revisions they consider necessary. The new charges structure and rates, with amendments from time to time, wi]l be designed to produce revenues that will, taking one year with another, cover all operating costs, including main- tenance and. depreciation, and interest on debt and, on a cash basis, provide sufficient funds for renewals and replacement of facilities, amortization of debt and leave a reasonable amount for investment in future development of facilities. Past and Present Finances 79. Although the Treasury has acted as banker to the Regie ancd in theory the accounts of the Regie have been treated separately, in practice the govern- ment system of accolunting has made it impossible to prepare normal revenue and expenditure accounts for past years. The records are on a cash basis, no in- formation being available as to accruals. During the years 1955 to 1960 ex- penditure has been incurred on capital works but it has not been possible to identify it in the Treasury records. It has been established that considierable sums have been charged to the Regie on revenue expenditure and capital account that should have been borne by the general state budget for the Bridges and Roads Division of the Ministry of Public Works but the amount involved cannot be ascertained. No provision has been made for depreciation. 80. However, the Treasury and the Regie confirm that the sum standing to the credit of the Regie as at December 31, 1962, after providing for all debt service to that date. was T,D. 1.781 million. Since the balance at Anril 1. 1952, was T.D. 0.202 million the average annual cash surplus generated over a period of 10 vears and nine months was about T.D= 0.1L7 million The average annual operating surplus, before debt service, has been of the order of T.D. 0.h13O million. The funds held hv the Treasirv to t.he crpdit of the lregie, after allowing for working capital would finance approximately 90,% of the local Currencvy co9tS of the pronect. - 17 - 81. The Government has agreed that these funds will be made available to meet the local currency costs of the project. In its budget for 1964, which has been approved by the Government, the Regie has provided the sum of T.D. 1.0 million for this purpose for that year. The Government has also agreed that, upon setting up the new Office, the'balance then remaining to the credit of the Regiets account will be transferred to the Office. Arrangements will then be made by wfhich tho Office will provide the Government with funcis to meet local currency costs of the project arising thereafter to the extent that the Office has sufficient funds availab'le for that purpose. Present Debt 82. A schedule of the outstanding debt of the Regie as of December 31, 1963 is given in Appendix 13. 83. The total original amount of the debt was T.D, 8,580o000. allI of which originally derived from French sources. Of this total T.D. 500,000 was obtained bv the Governmpnt in 19)7 from the Ctrmntnire Nnti anql DF.scoript, (i3 Paris (C.N.E.P.) repayable in Dinars at 4% per annum for a period of 20 years, and will hb filly repaid in 1967. Tlhe balance outstanding a-t. nTPnimhPrbr 31 1963 was T.D. 118,000. 84. The balance of T.D. 8,080,000 was made available to the Regie by the Tuni s:i an rerarnmonf. niit. nf fuindls nroviderlatd bhr *.hcb Pr nneh r.n-rornmrnon`t i n Vronch francs. The balance outstanding at December 31, 1962 was T.D. 6,681,o0o. Because of the devaluation of the French franc, not followIed by Tunisia, the Tunisian Government has agreed to devalue these loans and convert them at the newi rate of T.D . A5070 7Fr0 . -rTP f 1,000 as nfr 4P-, Q--.+.b 1, 10Ar) (An A adjustment took place in the value cf the French franc in December 1958, when the exchage rate moveA fro . t o L.Q 4t-h 4.US1 TTC ItwIas T4.. Ac thA 4- the4- -1- ~'*SL .XL.LO.S.~~ U ~ LI LA VL .J.J. 'JUL L4o U0 C *O?~ VW. UZL1 V.JJ.WJ.e .1 u was UU J. 4L ULCLt,.L'IJ± T.D., which had been established in November 1958, would not maintain parity W.li1th tLh e FIrench1.l franc.) TLhe ULJ.ceLt UUtstandiaL.L1 CU JAtDlLcer.be 31, J.7]93 'was T.D. 5,686,ooo0 The whole of this debt is on generous terms, the interest rate beinglg per t A60 ofr the total, On thee acisTsmntions and on t.he bhacsi nf' tho present tariff the new Office should be able to finance the local currency costs of thi.s further extension arnd still have fuAnds of nearly T T. : million at the end of 1971 available for further capital works or asset replacement. In 1972 t0 e cash generated, including h- 1,itir,-.i1 h ren about o5 million while total debt service would amount to about T.D. 0.57 million and would bDe covered 1.3 .. treOS. i rus hre stru^-4-e -d ral;es t:hs WV,J t.Ut U ~ ~U .S L. U.1I_ YY.L WAn A AJ. I V .ALOcA . ,,faJ .J Id UAL "- 4i tT Wi-A A. tS financial position could be improved. 95. Interest and debt service coverage and the generation of cash sur- pluses are satisfacttory, e-ren on the conservative fir,ancial forcat±;kCLCU0, tIIe bases and assumptions of which are given in Appendix No. 17. 17TTr r'C)ThT,T TrTC7fTht1 AMT' )r n %ffhADTr,1TflAMTn1,TC' V .I. L. *I ~U O-\.Ji'lio 2tulJ.-I i''jJtJ.±W. 96. The proJeI s opera-tj'orial- eseta.I w nbevepresen1t 7U. ez proj2ecu . _ (,pbtat.U1161±yo IL' WI.". ui1aU.Lu lunti pr,fLv quays at La Goulette to be used to full. capacity for general cargo and will relieve the present con estioO and shicing restrictions at Tunis old port. It is economically and fnanc1ally sourd. - 97. The project is technically well designed by competent consultants who have prepared the design and who will supervise construction. ThLe esti- mates of cost are reialistic. The execution of the works will be awarded to qualified contractors chosen through international competitive biddirng. 98. The Government will set up a new autonomous body, the Offic:e des Ports Nationaux Tunisiens, to manage and operate all the commercial ports and harbours in the country. The passing of the law authorizing the creation of the Office has been made a condition of effectiveness of the loan, The Office will be under competert management, have good accounting and costing systems and will operate with port charges and rates designed to ensure that future finances will be adequate. 99. On the basis of aGreei,ents reaclhed with the Government, the project is suitable for a Bank loan of US$7.0 million equivalent to be made to the Govermnentp, a term of 25 years, inicludling a thtree-year grace period, being appropriate. April 21, 1964 Bank APPEDIY 1 TUNIS OLD PORT (saLp 2 and photograph 1, Port of Tunis) There are about 6i meterso used for general cargn (B-asin R on photograph), 80 meters of very shal:Low draft quay (Basin A) and jetties and doJlpI- 4. bers -4 or4l. coal . e s(Bin l4 Th.ere iso alsc a separat shallow basin (D) used mainly in connection with a land area known as "iMadagascar" h1aving floating eraft4 sli J:ays anA raaintenaancee facil" ities L'I %A= LI~ -1 L .6 UL1i L v L _.LU VJ uL. £J AU11CA L mcil± J~. v forbuoyage and lighthouse equipment and workshops and stores of the Road.s DUepart*Mtentie nu iiauaaca alsoV, UIVhere_ is l t--xp_loslvtes) stor.L qe q-uays are in adequately serived witL hl t.asit shieus anri wared-luses totalling only l1,000 m2 in area, and open storage and vehicle areas are very resbriubuu. Onl-y wlue SoutQa-y (e on phot.ograpn, wLth 260 -meters of quay, has both standard and meter gauge rail tracks and quay cranes. The port area is eongesLeui and th-ere is no land for sxpansion. The quays were built more than '50 years ago. They are of poor desigtn and construction and rest on a layer of sand placed on soft mud. There has been considerable subsidence and the toDp Of the quay Tace is now only about 30 cm above water level. The quay aprons cannot carry heavy loads and mooring bollards had to be placed about 8 n baok from the quay face with the reslut that ships' riooring lines interfere with cargo handling on the quays and the use of mechanical equipment. Because of the mud sub-soil and the shallow foundations it is not possible to dredge against the quay faces to a depth greater than about l; m and even medium-size ships have to berth with pontoons placed between them and the quay. The greatest depth of water that can be maintained anywhere in the Central Basin is 7.5 m. It became apparent before the last World Wiar, when traffic was less than it is now, that the installations could not accommodate the general cargo traffic, but the war precluded any action. In 1949 work was commenced on a project to reconstruct the quays at Tunis on a straight line. This was nm- successful as part of the new quay (the Suet Quay) (f on photograph) turned over and slid into the mud. lIork on this project was then abandoned.. It would be an extremely difficult engineering problem, as well as being un-- economically costly., to construct a modern deep-water port at Tunis. The 'runis installations are comnected to the sea at La Goulette by a canal, across the Lake of Tunis, 10 km long and dredged to a depth of 7.5 m. Parallel to the north bank of the canal are a railway and a highway constructed on the mud. Siltation of the canal occurs partly from mud being squeezed ouit by the weight of the railTway and road and of the traffic they carry. This is a continuous process and also results in the gradual sinking, at about 11 cm a year, of the railwjay and road. The railway has been main- tained by a continual packing Twith extra ballast which now is 1.5 n deep., It is estimated by the Consultants that ceasing to dredge the canal would result in savings of approximately D 4D,000 per annum; the annual cost of dredging the canal and maintaining the bank is estimated at D 70,0OC. A DDI\TnThT ' MTnThrC' T A ('CT TTVtrrrn- TrS,%n:M T)Tn(\TT.,IM ±LUJ.4..JLl JJ.Lo_2_ .r,JlX± LJ UI.L Vessels calling at Tunis-La Goulette 1957-1962 Average net Number of -vessels ReglIstered orLage Tunis La Goulette Tunis La Goulette (vi.a canal) Rades Total (via canaj Radies 1957 1,359 429 1,788 i,254 2,201i 1958 1,426 480 1,906 1,247 2,144 1959 1,522 483 2,005 1,084 2,357 1960 1,427 508 1,935 1,021 2,687 i961 1,475 510 1,985 1,042 2,885 1962 1,403 448 1,851 1,075 2,714 Source: S.E.T.E.C. APPENDIX 3 myrTI -T TA fCTTTLI'MT' nG0M fDT: itv'Im rable of the 4 aft of~ total movements of' d.L a . Le ULI UJ.QIL- U LZ.L t',JUW UL uV i %,U vessels using Tunis-La Goulette, 1962. A:rrivals and departures plus movements within the Port _ > A T- - 'I fl .-J.L.4. TuniJ 'via Canal) ILU GouLte tt;e Draft in Meters No. of No. of Movements yo Moverments _ _ Less than 3.50 486 17.4 99 10.0 3.50 - 3.99 491 17.5 107 10.8 4.oo - 4.49 548 19.6 89 9.0 4.50 - 4.99 362 12.9 123 12.5 5. 00 - 5.49 454 16.2 88 8.9 2,341 83.6 506 51.2 5.50 - 5.99 224 8.o 79 8.0 6.oo - 6.49 206 7.4 103 10.4 6.50 - 6.99 25 0.9 79 8.o 7.00 - 7.49 4 0.1 78 8.o 7.50 - '7.99 1 - 60 6.1 8.00 and Over 1 - 82 8.3 2,802 100.0 987 1.00.0 NOTE Movements at La Goulette include vessels anchoring awaiting passage through the canal to Tunis Source: S.E.T.E.C. APPTE'nTY IL TUNIS-LA GOULETTE PORT PROJECT Regie's Existing Eguipment u c-anes 3 A x 6Lton on 2Uuth quay orLLy Mobile cranes 13 ) Mechanical handling equipment Frork L:Lft trucks7) {X N T . - ---'_ _ _ I ;) AI UUU±-~Lt:61~t Quay cranes 7 x 6 ton (c) Floating Equipment at Tunis-La Goulette 2 dredgers 7 tugs 3 lighters 2 barges 5 floating cranes (up to 60 tons) 6 launches and pilot boats 1 modern 790 ton service -vessel for maintenance of lighthouse and buoys Other small craft TUN:S-IS,A GOiJLETT'E PORT P'ROJECT Ratio of Cargo Traffic at Tunis-La Goulette to all Ports 199-15962 *000 Tons lota. Traff-ic Imp ]orts ]ExDoirts All Ttnis.. All Tunis- A1l Tuanis ,_, ~ L ,,TA-i Goulet.e i- . eTislee JUnisj: ve6e 1000 Tons I on00 onTs '000 Tons Tons000 Toni t rons 1959 5,193 2t,473 47.6i 1],114 761 68.3 4,079 1,712 42.0 1.960 5S091 2,774 54. ti 1,251 962 76.9 3,840 1,812 47.2 1961 5,359 2,656 49.6 1,754 1,208 68.9 3,605 1,448 40.2 1962 4,647 2,363 50.9 1L,262 1.0,70 84.8 3,385 1,293 38.2 2>0,29>0 10,266 50.6 5,381 4,001 74.4 14,909 6,265 42.0 TUNIS-LA COULETTE PORT PROJECE Analyses of Cargoee Harndled at all PorLs-1261 oo00 Tona TUiIS BI ZERTE SOUSSE SFAX l'OTAL '000 Tons '6 '000 Tcons S '00(0 Tons 9 '000 Tons £ '000 Tcms S Importjq Coal anmd Coke 42 88 6 12 40 .LOO lBulk Petroleum Produc:ts 380 77 1PJ 4 95 19 493 100 gieneral CarieQ Cereals 357 62 55 1D 0*. 16 68 12 57'4 lO Otheir _429 ?7 IL 1 41 7 163_ 25 .2 10LOG - 786 65 .iL 5 2 11 211_ 19 1.2 .LOO T'otal Irnorts 1,208 69 7_ 4 l'?Q 8 L_ 2.9 1 100 Exports Phosphates 194 10 1,746 9O 1,940 10 Iron Ore 875 98 20 2 895 100 flfa (Esparto Grass) 57 83 14 17 81 100 Salt 59 43 77 7 1 i6 100 'enera1 C"o Cereals 25 89 3 11 .28 10 Cerment 39 43 51 57 90 100 Wine 131 1.00 131 100 Olive Oil 44 100 44 100 Other 184 71 .9 15 _l' 6 22; 8 2,50 100 379.? 68 91 .17 3 66 1L2 'igL 100 Total Exports 1,448 40 111 3 141 4 1.90L .53 L61L 100 Toti la)rts And Exworts 2. 50% U_O 3% 5% 2.23' 42% 5S 100% General Cargo Cereals, wine, olive oil 513 66 58 a 94 12 112 14 777 100 Other 652 66 94 9 _ 58 6 1L 19 989 100 1,165 66 1 52 9 1.52 9 297 16 1,766 100 BLlk 4Ot 41 '.8 1 126 4 L9113 54 2.~2L 100 2.6S56 So% 19y0 3% 278 5% 2.231 42% J-1i2 1OO% Source: P egie Des Ports de Co:amerce TUNIS-LA GLULETTE POFRT PRCjECT AnaLlysis )f Cargo Traf-ic at 6`tTl a GoI6te 1953-1962 G000 tO]!1S I M P O R T S __ __ _ ___ EX P OT S ___T__ _- Coal Bulk General Cargo Sub-total Total - Phosphates Iron Ore General Cari o __ Sub-total Tota1 Total & Petroleuxa Cereals Other General Imports Goreralo Cement Wine Other General Exports Traffic Coke _ carg cargo __ 1953 68 271 - 3313 338 677 .198 388 194 18 21 176 409 1,495 2,172 1954 64 307 - 350 350 721 216 '783 174 62 49 133 418 1,41'7 2,138 1955> 36 359 28 382 410 805 197 '?73 84 95 76 137 392 1,567 2,372 1956 50 345 89 393 487 882 213 1,107 43 111 77 191 422 1,642 2,524 1957 68 283 39 358 397 748 244 946 loG 170 129 194 593 1,783 2,531 1958 25 298 37 3)5 )36 710 ,19 277 19' 117 124 191 62 1,812 2,528 1955 23 325 76 337 413 761 280 '793 1'5 181 142 181 639 1,71:2 2,473 1960 46 346 164 4C6 570 962 242 9'88 1(8 143 107 224 532 1,812 2,774 : 1961 1 42 380 357 4293 786 1,203 194 875 25 39 131 184 379 1,44B 2,656 w 1962 33 388 243 4U 6 649 1,0970 196 S54 44 65 118 216 443 1,293 2,363 Source: S.E.T.E.C. APPENDI) 8 CO rlt'TrC ON CM tD M A TK Tt1I-PVC n rTT11D A TOF AT-) CA-O 1:rM*L I Xt (a) Cereal.s. The main crop is hard wrheat and the quantity availabLe for expoiu UL u epenuds u}ponIUli'z ko.LII .LL (L UVLIU.J.LU_L1z 1 cUJ.t Ul4or 1ta.L VVOUe L11 goodL Jyear exports of grain have been up to 194,C000 tons and have averaged 110,000 tons over the past teen r, yars. Cer-eals are- also ,1porUedU r&L-Lly soft wha,fin the quantity again depends on the loCal harvest. The maximum has been 357,000 tons with an average oI 103,000 tons. Total cereal imports and exports have averaged 213,000 tons daring the past ten years, 276,000 during the past five years, with a peak in 19}6I Of 382,000 tons. iosk cereals are handled at La Goulette North. All loading and unloading is manual. Imports, -whicn are in bulk consignments of up to 6,000 tons, are bagged at zie -wharf and stored there for long periods. Lm,sses are sustained in damage to bags ard contents and costs are incurred irL having to re-bag considerablt quantities. Up to three full berths are taken up at La Goulette with cereals. Tnis traffic must be removed from the quays before any real quantit-Les of general cargo can be diverted from Tunis and before the La Goulette berths can be fitted up to take that diverted, traffic. (b) Cement. Cement is produced locally, the surplus available for export depending on local demand. Exports were 18,000 tons in 1953, rose fairly regularly to 101,000 tons in 1959 and then fell sharply with 65,000 tons in 1962. Cement is exported from the Tanis Basin, in bags, mainly in small ships taking full loads. (c) Wine. Exports of wine improved slowly after the war, were 21,000 tons in 1953, rose consistently to 142,000 tons in 1959 but have fallen to 118,000 tons in 1962. A small proportion, about 20, is exported in special small wine tankers carrying a maximum of 3,000 tons, but the greatest part is carried in snall consignments in storage tanks in general cargo ships. Loading is by pumping from road tankers. The project includes the installation of storage tanks at La Goulette with pipe lines to the various berths. TUNIS-LA GOULEtTE rORT PROJECT Est.ioates of Fut,ure TrLffic, ?ort of Tunis La Goulette - 196.3-1971 '000 Too Actual 196 126 .1964 196 S, 16 1962 kZ 126& 1269 197 197 Cargo at General Cargo Wharves General Cargo Cereals :243 243 IL35 135 135 135 135 135 135 135 r 32 32 38 41 45 49 5:3 58 64 70 Other 74 374 'in 405 _388 424 46j -_59 517 549 649 548 581 568 608 652 701 716 764 Fort6 Cement 65 65 40 40 40 40 40 40 40 40 Cereal3 4.4 44 120 120 120 120 1210 120 120 120 Coreal Derivatives 59 59 63 65 67 70 72 75 77 88 'Nine 118 118 125 125 125 125 125 125 125 125 Jrruit and Vegetables 5 58 ?2 81 91 102 114 128 144 160 ODlive Oil 1 1 3 4 6 8 10 12 16 20 Other 270 70 - 76 79_ _ g 35 89 _ 92 96 ltO 415 415 499 514 531 550 570 ',92 618 64S5 Total Genera.L Cargo 1,064 1,064 1,047 1.095 1.099 1,158 1,222 1.293 1.334 1.409 Fuel Oil (Pcwer Station) _ 29 90 -"Q -106 -I2 11.5i. 1S_ 2° , 192 i TotaL at GeneraL Car,oWhry 1,154 1,154 1,147 1,201 1.238 1.303 1,376 1,452 1,526 1.609 Coal. Coke mid KtineraLs __61 61 _ 72 74 __72 -72 __Z _ 80 84 018 TotaS1 C zroes t Tuni3 and La Goule tte North Lm i .21 _219 1,275 LUo 1.175 L!2 _ i3L i . iZ...2 ba11 C go at a Goulette South (R4de Bmlk Petroleum Products 298 298 85 95 106 120 134 151 169 188 Iron Ore 654 654 850 850 850 850 850 850 750 7 50 Phosphatea 196 196. _202 200 _200 200 CQO __ 20 200 2QQ L!SQ 1~.14 L15 1.14s, L15_ L,170 LE4 1Q 1.119 LL3 TOTAL 2_16~ 23.jjL4660 2.545Zl 22 TOTiL 2,2;1 2,16n LAd ~~~~~~~~~~~~~~~~~~~~~2.420. 2,^6 ..4 .6'1 2 2 2.729 2.811 ,ource: S.E.T.E.C. 1964-1971. Estimiutes for 1963 were assumed to be the same as 1962 ac tual. APPENDIX 10 Page 1 C0MENTS ON CERTAIN ITEMS OF' FOEKCAST T_' TNAGES It is impossible to forecast annwul variations in imports and ex- ports of cereals. As stated earlier, the total of imports and exports of cereals has averaged 276,000 tons over the past five years with a peak of 382,000 tons in 1961. Average figures of 255,000 tons (imports 135,000 tons, exports 120,000 tons) have been used in the projections. Provided that ade- quate bulk handling facilities are installed one berth will be able to deal. with all grain tonnages up to peaks of 4-500,000 tons a year, and can handle general cargo when not being used by grain ships. Fuel oil for electricity generating station (map 3) It is estimated that bulk fuel oil discharged at La Goulette North commercial quay for the power stations will rise steadily from 90,000 tons in 1962 to 200,000 tonis in 1961 but it is not expected that this increase will have any appreci,able effect on general cargo tonnage capacity. The sec- ond power station is umder construction. Consignments of fuel oil for the power station will continue to be carried by sea. Bulk cargoes handled fat special facilities at Rades (a) Petroleum products. An oil refinery at Bizerte is expected to start production -in 1964. It will have a capacity of 1,000,000 tons with a future ex-tension to 1,500,000 tons. No decisions have vet been made as to methods of distribution but on the basis of comparative costs it is estimated that. assum:Lng full nroduction in 1964. sea- borne deliveries by coastal tanker to La Goulette South (Rades) oil terninal will firop from the 1LQ92 -rigure of about 3000_00 tons to 85,000 tons in 1964 and rise to 188,000 tons in 1971. (b) Iron ore exports. The reserves at the iron ore deposit at Djerissa, which is served by Tunis-Ta bGoulette- are estimated at about 12,000,000 tons and, at the current rate of export will'be ex- haumsted by about 1975. There are no Innw_ alternative suitable deposits within the Tunis service area and it is probable that the bulk wharf and facilities at RQdeS will become redulndant dulring the 1970s. (c) Phosphates. The largest and most favorable phosphate deposits now.r -t -ibeI44--,sJ O¶ - Jn +1hr nn - rt+ Of t1h- co,.--,ty, ..v.~~~~~~~ ~~~~~~~~~~~ ~ Li 'IJX t'LS'.. _ '. _4.J Xt J^ 3.. I.. vS_ . vIv _ ports being from SFAX. The only deposit at present served by Tunis in. the northern part of tne co-try is at- Yalw DJerda. M re-- serves are estimated at between 5-10,000,000 tons with exports at; 1'^t 200o00 4oA per anwm, co-ared wi4-1- a-..4- 1 Onn,0 to^ ns. ~W VW"'Q1 JJ- (;UAUJJi,M 'IUJ~J U. L#.LsJ. C~L'UU t .L,UVV,VVJ~V LUVLI± per annum from SFAX. It is estimated that the Kalaa Djerda deposits wil:l be exhusted by about 1972, taking into accoun local con- sumption. APPENDIX '1 -2-age 2 A further large deposit has been found near to Kalaa Djerda, of relatively poor quality but easy to extract. Studies are still continuing to decide whether or not to exploit this new source. If it is so decided, the annual export from Tunis could rise to about 650,000 tons in 1967 and 1,000,000 tons in 1971. Otherwise the bulk facilities at Rades will also become redundant in about 1972 . s'UNIS_]LA GOULETTE PORT PROJECT ESTIMATED DISTRIMBUTION OF TLAFFIC AT TUNIS-LA. GOULETTE - 1963-1971 ('000 Tons) Actual 1962_ 1963 1964 M>~~1165 1966 1967 1968 196 197CQ .971 LA GOULITTE (North) Cereals, wine, olive oil and fuel oil 353 353 431 437 470 476 485 ,490 523 550 General Cargo 49 49 _50 _ 50 Q 648 648 6548 64C 648 Total La Goulette 402 402 481 487 520 1,124 1,133 1,138 1,171. :1,198 % of Total Tunis-La Goulette (North) 33% 33% 39% 38% 40% 82% 78% '74% 73%1 71% TUNIS Corru-eri,. a Cereals, wine, cement and timber 24C 240 223 26 230 139 143 :148 154 160 GeTneral cargo 477Z 477 434 4±7 .Q 16 76 _L40 M.j 220 717 717 657 703 700 155 219 :288 32,' 380 Kiieral a and Hazardous Goods 96 96 81 85 90 96 101 106 112 119 Total Tuni i 813 813 738 788 790 251 320 394 439 499 %of Total Tunis-La Goulette (North) 671% 67% 61% 652% 60% 18% 22% :26% 27% 29% Total Tunis-La Goulette (North) 1,215i 1,215 1.219 1,275 1,310 1,375 1,453 1,532 1,610 1,697 RJDES (La Goulette South) Bulk Petroleuat, Iron Ore and Phosphates 1,148 1.148 1,135 1,145 1,156 1,170 1,184 1,201 1.119 1,138 TOTAL 2,36 2,420 246 254 637 2733 229 2,835 Source: Howell & Co, S.E.T.E.C TU1NIS: _OIFJT OF LA GOULETT: li'-OJECT Estimate of Project Cost 1 T.D_ US$23 Local Cur:rency Foreign Currency T O T A L C 0 S T ciDst thousand cost thousand thousandL thousand dinars US_ dinars U eauuivalent 1. DemolitLon, dredgingJ an(d reclamation 328.0 1,020 756. 0 J. 0C) 2. Roacls, b7ridges and rail tracks 362.2 985 777.2 i,850 3. 370 m. new quay at La Goulette 112.0 755 429.0 J,020 4. Sheds and other bui:Ldings 638.8 1,310 1, 1808 2 83() 5. Fencing and utilities, fire fighting equi,pment and telecommunication 155.0 1,,270 69.0 1,640 6. Relocation of breakwater 100.8 360 252.0 60O) 7. Miscellaneous 109.2 160 176.6 420) 8. Consult-ing serv:ices, engineering design and supervision 42.0 580 286.0 680 9. Interest during construction - 560 235.2 560) 1,848.0 7,000 4, 789. 0 1,40( TUNIS-LA GOULETTE PORT PROJECT Re1K dles Ports de Commerce Present Debt T .D. ' 000 Ealanc e outstanding at DecediUe '.i; -62 Balance To-tal debt Amount Interest At old parity Converted at service at of rate Period rate of ELt D850,709 December converted Date of Loan_ Loan Amount Years exchane ,Fr.,OOC) 3]L,1$63 rate 1963 STATE LOANS 1955 Expenditure 1946-19055 consolidated in one loan 7,2:50 12 360 1.0 6,125 5,2l1 ,076 800 25 6,090 5O 19t56 2190 1-1- 1 10 261 222 218 15 25 274 0iO 1957 270 116 25 236 201 195 154 r5O 19i58 ,70 l1- 157 25 239 203 197 113 50 8,C80 6j,86I 5 ,8387 5,686 238 Comntoire National DtescomLte iTEt d.e Paris (C,N.E.P) throuwh state iu '.L u'-valued,) 1947 500 4 20 _149 149 118 3 8,580 7,010 5,986 5,804 275 Arnuity for Re-ourchase of Port of Bizerte Concession Expires; 1965 1 So-uxce; liowel'L &- Co 276 SouLrce:. Ho0wel:L & C'o T'U13-LA Gul,LTE P0;-1T lPLoJEC?T eregie .is Ports Cie CGomercetliew Autonoriouo . ort Aut:.ority St.atc en.t s.owi ng Estir.ated ~..nuesZ re~- ses aL Surpluscs and Interest and Debt Service Covo_rage, 1963 to 1971 Year Ending DeceTh9~r3b 3L L T.D. '000-- i963 19U,4 L-.'u' 1964 L96' J.'96i 1969 1970 19?71 OPERATIN3 RE'E:.ES Tunis - In GouletLe 811 832 873 874 18i 1,034 1,C92 1,111 1,168 Other Ports6 464 464 464 464 6 64 464 4646 464 1,275 1,296 1,337 1,338 1,145 1,i98 1,556 1,575 1,632 0Fih;A:ING EiX8PEuiSES (Bafore LepreciLtion) Tunis - La GouLotte 452 477 439 498 543 555 572 583 599 Other "or ts 201 201 201 201 201 201 201 201 2D1 653 678 690 699 '74 '756 7'73 784 8DO OPiEIATING SURPTUS 3EFDHE DE.. ECIAP'iOlN 622 612 647 639 '701 '742 783 791 832 TDTAL D13T SERVICE 276 276 29q 2712 46 42? 427 427 427 DEET SERVICE COVERED - TDl.EE 2.25 2.24 2.50 2.64 1.57 1.74 1.83 1.85 1.95 CASH GE0I8'ATED AFTEil DEBi3 SERVICE AVA1LA':LE PKE I¢EST- iT S'liVRCT TO ANNUAL PAYWInT IN LIEU OF TAXES (see below) 346 342 388 397 .255 315 .56 364 6D5 DEPRECIATIOiD 306 306 306 30u 419 bl9 419 419 419 NE'I' PEhATING S'IrPi.US A rE} 7,REPCIATIOi 316 j12 ;41 333 282 323 364 372 413 2?2-H"T1.G RA I(i 15% '76'3 74' 7 5 805, 785 77% 76% '75% I___v__jT__CHiRCi3 9_ 0 80 82 233 227 221 214 208 T ilRO;-.nr- r D'S_"-' D - '?I . E S i.47 j .~'7 i 4Z .' 1.21 1.'.2 1.45 1.74 1.99 F'AYMENT IN LIEU OF TAXES 20 20 20 20 20 20 20 20 20 1EZT FEE7DII:J aALA::CE TO SUPILUS 202 202 235 231 29 76 1.23 138 185 t= Source: Howell. / Co, modified by Bank Stiff TUNIS-LA GOUL_T'iE PORi PROJECT Regizi des Ports de Comerce/New Autonomous Port Authiority Estimates o0 UebiD 6ervlce -I'll- i in T.D. '000 L63 19_ 4 11 L965 _1 966 _ Total Interest Total Ilnterest Total Interest Total Interest only _only_ onl-- State loann, includiag C.N.E.P. 275 93 275 89 258 85 242 82 Annuity-PReFurchase of Bizerte 1 1 1 1 1 1 - - 276 94 276 90 259 86 242 82 _ 1967- - 1968 _ - -- -- TotaL Irktereat Total Interest Total Interest IotaL Interest Total Intereat _al Il_ :ly only_ __ otlt D State loans 224 79 205 77 205 75 205 72 205 71 I.B.R.D. 222 154 222 150 222 146 222 i42 222 7 446 233 427 227 427 221 427 224 427 208 Source: Howell & Co TUNIS-IA GC U;.TT2 PORT PROJECT Regie des Ports de Commerce/New Autonomous Port Authority Statement of LEtimted Cash Flow 19 z- 197l In T.D. '000 Construction Period Post-Construction Period 1963 1964 1965 1966 Sub-total j 1967 1968 :L969 1970 1971 Sub-tota.l GPMAND _1963-i661 _ 67-197 _ TOTAI CASH ;EQIR1gENS CapitaL Investment: 9,613 Project 4,571 Tertative Futiure Investment - Five Berths at IaL Goulette 5,042 k1ork in Progress:: - Project 40() 1,076 1,556 1,539 F'uture Investment 1,260 1,261 1,260 1,261 Debt Interest: I. B.R.D. L54 150 146 142 137 729 729 Ocher 94 9D 86 82 352 79 77 75 72 71 374 726 Ilebt Arnortihation I,,B.R.D. 68 7'2 76 SO 85 381 381 Other 182 186 173 1150 7C11 145 128 130 133 134 670 1,371 1Fment in lieu of' Taxes 20) 20 20 20 80 20 20 20 20 20 10t 180 TOTAL CASH REQ UIRUMNWS 696 1.372 1.835 1.801 5.7C4 466 1.707 1.708 1,707 1.708 7.296 13.000 CASH AVAILABLE Net Operating Surplus 316 312 341 3:33 1,302 282 323 364 372 413 1,754 3,056 Dlepeciation 306 306 306 306 1,224 419 419 419 419 419 2, 095 3,319 L.B.R.D. Ioan 966 882 967 2,815 2,815 ]1-n for 'uture Investment: assumed 60% of cost _ _ __ _ -- 756 757 756 756 3.025 3 025 62-2 1.58L 1.529 1.6)6 02601 148 1.540 1.54j 1 6.874 12.215, ANWDUAL CASH SUIPLUS 212 235 DEFICJ:T 74 306 195 363 209 168 160 120 422 785 SURPLUS IJRGUGiT FUR1WARD 1 78L 1 707 1.919 1613 1.78l 1,418 1 65. 1 444 1-27i 116 1 1.781 SURPLUS CARRiIED RFRWARD 1,707 1,91Y i,613 1,4I1 1,,1. ±,6u^ 1,424 ',27' 696 of which working capital (ca.sh in hands of cashiers Dec. 31,1962, T,D. 155,664) ISP 162 170 170 1n9 202 213 217 228 Source: Bank Staff` r, nrlMTVTV 1 7 TUNIS-LA GOULETTE PORT PROJECT Financial Forecasts Bases and Assumptions Used Revenue forecasts for Tunis-Le. Gouiette are based OI1 the cu'rrelnt tariff and on the traffic forecasts. Operating expenditure is based on this 1963 budget with suitable allowances for cost increases and for maintenance of the new facilities. For the other ports, in the absence of any traffic forecasts, revenue and operating expenses have been assumed to remain at the level of the 196:3 budget. Depreciationa on existing assets has been provided on the basis af the existing valuation, and at 21a per aanum on project costs. Provision has been imade for a :Bank loan of T.D. 2.941 million (US$7.0 million equivalent) at 5Yio for a period of 25 years with a three-year grace period. The forecasts are conservative since they do not make allowances for the following: Ea) Reorganization of the rate structure including probable new dues and rates and probable upward adjustment of certain dues and rates; b) Reduction in operating costs by elimination of dredg- ing and maintenance of the Tunis-La Goulette canal and of the Tunis basin: c) Substantial additional revenue that will accrue at Bizerte from the importation of crude oil for the refinery and frorm industrial development; d) Traffic growth at ports other than Tunis-La Goulette: e) Elimination of exoenditures not attributable to the ports (para 79); f) Reduction in depreciation charges an existing facilities. MAP NO I hi tite r r o n e rJ n Se o IT : < ~ ~ ~ ~~~~~~~~~~~~~~~~~~Gl of runi- LGIE Keli,bg BEIA~~~~~~~~~~~ ni! Temine J03!d *OsSt;E -. - , %V"$v' '4 .' { ~~~~~~~~~~~~~~~~~~~~~C I METIR . GAS / E~~~~PqtIo..~~~~~~,j MOillo I ~~~~s.b /61,,.,1 -t - $e -o . - - . | . Fe;~40t - -;~ 2 .; , [ S--/ ~~~ ; wr ;'rriDrFr4r- > < ;v { c # hi~~~~~~~ t.u C 36' 2. _Y;4AuA LUFSF L -~~~~~~~~~~~~~-- .~ ~ ~ ~ ~ ~ ~ ~ ~~~. -. -.St;g;t . !- ' s fAC1s t\rE . ! \ ~~~~~~i' Y f , f t4 _ XaI>\j T UJ N I S I A | ,I-e ,. Kv MAJOR PORTS AND SERVICE AIREAS - - -. VOCAlS LU *\ MClrrF.FT i6 S e..r. N .v,. .41 - aFor,. oion,tj _, 3 {7> ;L wSTAu ;; ATC C;.,. S,E sr,CE /*F6 6. . - - ', ~~~ ctjn 6 5~~~~~~~~~~~~~~RVCE OPtA~~Ha ma n _- '-n.Ml 8 I ...CTE -.Ev . ( _ _ _ _ _ I . 'C-~~~~~~~~~~;CD G _ _ ,5M ~~~~~~~~~~~~~~~~~~~~~~~~.,, Ali2 JANUARY 1964 IBRO IZ33R MAP NO Z S,c, Bou Soid I _ ,11 / \1 // / PO~~~~~~~~~~~~~rRT OF LA GOULETTEPROjECT I , A IIR ^ El Aouino h age CANAL a ROAD MAP OF TUNIS-LA GOULETTE AREA EXIST NG RAILWAYS:- NG Na,-ow 62uog 8.6 &rood 6ooge - EXISTING ROADS / / s 1 ~~~~~~~~~~~~~~~~~K e red d ne bfS0koxgto7 - --FTURE ROAD I Mutue--c..... ,: . 4/>\ _ PROPOSED ROADS I _trBierte ""'' 'e.-|.sn-., ) e>- '-B ous Li- _ t= -, S C ' 5 0 OI(iIS~~~~~~~~~~~~~~9Oud Sht 0 i 2 3 4 5 Miies JANUARY 1964 RO 1284R MAP NO 3 ct1$~~~~~~~~~~' ~~~Custom Fence W Parking Are Railway Track NEW BUILDINGSE i - Sheds 2 - Panneger terminal Alec FI,h,ng Channel ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3 - Warehouses 4 - Wine storog S -RHiring costar K '6 - Administration building 7- Transfor-eor 8l . Public loatarios P O~~~~~~~~~~~~~~~~PR O AGUET /o~~~~~~~~~~~~0 0 00 st 50soe A 20 40 00Fish 000FEE FEORLJOMY 564 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ tR5 28505~~~~~~~~~~~~~~~~o Photog ra ph I , Rjg;: > ; t3 ~PO RT O F TUNISii Z,>~~~~W.F I s - < *?-LaE -l ) W=f ----qr -ttQi ! Ai 41.t vj;.Q P2$i j\ \| (, t'\\'-8~ ' ' \5~tM* r6 V7 ~ ~ ~ A HABRCAT2AI . IEA AI .SUHOA BM AII OM C.,AI .MITEACEBSN .SE U. Nl'SVG AAVN 'tl NISV13 l.VC1 9NIHSIA 'El 180={, rF Be~~~~~~~~~~~~~~~~~~~~~~~~4 Fw0:: _ =- - ~~~~~~~~~~~~~ 1 g r RL~~~Ok I AA ;k.I - I--V - ' . irw8> _ - _ ^ 8 > 1 311311109 V1 20 180i~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~z 4 Cl DJ 6 oSo q si~~~~~~~~~~~~~~~~~~~~~~~~~~~~~4