United Nations Conference on Trade and Development (UNCTAD) Guidelines for Port Authorities and Governments on the privatization of port facilities


contains sample clauses for leases, concessions and Build-Operate-Transfer (BOT) arrangements together with procedures for tendering, contents of bidding documents, performance measures to establish true financial value of bids as well as operational performance measures

(this document was produced in 1998 and so some aspects are out of date).  It takes a very narrower view of private sector involvement (as it excludes operation and maintenance contracts, for instance) and so is only relevant to leases concessions and BOT arrangements.  the section on employment is helpful but the discussion of bid procedures does not explain the advantages of a feasibility study and due diligence for the study.  There is also little reference to the whole issue fo land surface transport which is a key issue.  The guidelines prefer freedom to fix prices which works quite well in Western Europe and in countries where ports are close enough for there to be real competition but is less successful in countries with long coast lines and few ports for the hinterland.  There is also an interesting issue for landlocked countries with communications access to really only one port. It briefly talks about bidding ceiling prices which does not really allow for the port to be further developed during say the life of the concession. It recognises that the Port Authority may have to metamorphose into a regulatory authority but does not really address the issues involved. A key omission is also the whole issue of insolvency law which is fundamental to the financing of the project and operability of the termination provisions is ignored.


For more information about this sector, please visit Public–Private Partnerships in Transport.



Ref: posdtetibd1

Last Updated : Tue,2016-02-16