Finding the funding

Financial support on a global level

On a global basis, the World Bank Group plays an important role in supporting port and related infrastructure investments, particularly in developing regions.

That support includes technical advice and assistance as well as the actual lending, says Reynaldo Bench, the World Bank’s waterborne transport and ports specialist, based in Washington. The obvious advantage for projects in the poorest countries can be very good credit terms where mainstream bank lending simply wouldn’t be available – and sometimes a grant, too. However, Mr Bench says: “The criteria for the World Bank to lend money follow the same due diligence as any bank. While developing countries are normally our area of focus, the World Bank would not finance anything that is totally unviable.”

All projects go through a long and detailed review process before they are submitted to the board of directors for approval, he says. “And if the project involved some disputed area, for example, that would be picked up at that stage. A project would not be submitted for approval if it didn’t reach the basic criteria.”

Interestingly, he says the situation in the capital markets means that the attractiveness of the World Bank has shifted for many, from financial advantages to the technical knowledge it offers. “Many middle income countries come to us for our knowledge and global expertise, not just for money, because for these countries more capital is available.”

Among the headline port-related development projects being driven by the World Bank is the Abidjan-Lagos Trade and Transport Facilitation project, to reduce trade and transport barriers across West Africa through port and road improvements. Another is the Intermodal and Rail Development Project for Tanzania, a project with four components to deliver reliable open access infrastructure on the Dar es Salaam to Isaka rail segment.