Port deals win IFC favour

And the pace is hotting up, with an average of six to seven port deals a year, out of a total of 20 projects a year in the transportation sector, compared with three in previous years.

But there’s still room for more, says Ravi Bugga, senior manager for transportation at the bank.

While the IFC deals only with developing countries (as defined by the World Bank) and private sector port ownership of at least 51%, state or government involvement might be considered if the private sector can be shown to be the overall manager and there is no political dictation of policies.

Two outstanding successes have been the new terminal at Santos in Brazil and Lome in Togo. Santos raised productivity and reduced congestion and financing was completed in four months. Lome improved transhipment – a big bugbear at all African ports — in the biggest financing deal in Togo’s history.

In terms of financing, the IFC prefers to finance via equity, says Mr Bugga, as this provides better coordination and managerial advice than a loan or grant.