Document of The World Bank
FOR OFFICIAL USE ONLY Public Disclosure Authorized
Report No. 186 lb-CY
STAFF APPRAISAL REPORT Public Disclosure Authorized
SECOND PORTS PROJECT
CYPRUS Public Disclosure Authorized
March 7, 1978 Public Disclosure Authorized
Europe, Middle East and North Africa Regional Office
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCYEQUIVALENTS (AS OF JANUARY 1, 1978)
Currency Unit = Cyprus Pound (EC) (1,000 Milliemes) US$1.00 E£C 0.40 US$1.0 million E£C 400,000 £C 1.00 = US$2.50 £C 1.0 million = US$2,500,000
WEIGHTS AND MEASURES
Metric British/US
1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles 1 kilogram (kg) = 2.20 pounds (lbs)
GLOSSARY OF ABBREVIATIONS
MCW - Ministry of Communications and Works PWD - Public Works Department DCA - Department of Civil Aviation CPA - Cyprus Ports Authority (formerly Cyprus Ports Organization) LBI - Louis Berger International, Inc. RPT - Rendel, Palmer & Tritton CP - Coode and Partners NRT - Net Registered Tonnage DWT - Deadweight Tonnage GDP - Gross Domestic Product MILS - Milliemes
REPUBLIC OF CYPRUS
FISCAL YEAR
January 1 to December 31 FOR OFFICIAL USE ONLY
STAFF APPRAISAL REPORT
SECOND PORTS PROJECT
REPUBLIC OF CYPRUS
Table of Contents
Page No.
I. THE TRANSPORT SECTOR ...... 1
A. The Transport System ...... 1...... B. Transportation Policy, Planning and Coordination.. 1 C. The Ports and Port Planning ...... 2 D. Previous Bank Group Transport Sector Operations in Cyprus ...... 3
II. THE PROJECT PORTS ...... 3
A. General ...... 3 B. Port Facilities at Limassol and Larnaca ...... 4 C. Port Administration ...... 5 D. Operations ...... 7 E. Finance, Accounting and Audit ...... 7
III. THE INVESTMENT PLAN AND THE PROJECT ...... 9
A. The Port Investment Program ...... 9 B. Project Objectives, Dimensions and Timing ...... 10 C. Project Description ...... 11 D. Engineering Evaluation ...... 12 E. Cost Estimates ...... 16 F. Financing Plan ...... 18 G. Project Execution, Supervision and Reporting ..... 19 H. Procurement and Disbursement ...... 20 I. Environmental Impact ...... 21 J. Impact on Employment ...... 22
IV. ECONOMIC EVALUATION ...... 22
A. General ...... 22 B. Traffic Analysis ...... 22 C. Project Benefits ...... 28 D. Economic Costs of the Project ...... 30 E. Economic Return and Sensitivity Analysis ...... 31
This documenthas a restricteddistribution and may be usedby recipientsonly in the performance of their officialduties. Its contentsmay not otherwisebe disclosedwithout World Bankauthorization. Table of Contents (Continued) Page No.
V. FINANCIAL EVALUATION ...... 32
A. General * ** *** ** ** *** ** *** ** ** **...... *.*...... 32 B. Forecast Financial Performance (1977-1986) ...... 34 C. Financial Covenants- ...... 36
VI. AGREEMENTS REACHED AND RECOMMENDATIONS ...... 37
ANNEX
Documents Available in Project File 39
MAPS
Republic of Cyprus - IBRD 13170R2 Port of Limassol - IBRD 13172R2 Port of Larnaca - IBRD 13171R1
This report is based on information provided by the Cyprus Ports Authority, on consultants' studies and on the findings of an appraisal mission in September 1977 composed of Messrs. J. Burns (Senior Financial Analyst), G. Unda (Engineer) and P. Nichols (Consultant Economist). I. THE TRANSPORT SECTOR
A. The Transport System
1.01 Cyprus has an area of 9,251 km2, 64% being agricultural land of which about four fifths is cultivated. The main geographical features of the island are two east-west mountain ranges (Kyrenia and Troodos) which cover about half its area, separated by a broad central plain. The foothills of the mountain ranges and the central plain are the principal cultivated areas. This configuration facilitates east-west transport but is an impedi- ment to north-south transport.
1.02 The transportation system in Cyprus prior to the 1974 events was reasonably balanced, comprising roads, ports, airports and a limited amount of coastal shipping. The 1974 events, however, resulted in significant dis- ruptions to the transport sector. There is little movement between the southern and northern parts of the island, although this situation could improve if and when an island-wide political situation is found.
1.03 Since the 1974 events, the Government has undertaken to improve the essential parts of the transport system to make existing facilities to serve the economic needs of the area it controls. With the closing of the Nicosia Airport (it is now under United Nations control), the Government has extended the airport runway at Larnaca to accommodate medium- and long-range jet aircraft so as to reestablish international communications with southern Cyprus.
1.04 As Cyprus has no railway system, highways are of critical importance. The highway network radiates from the capital, Nicosia, to the main coastal centers, Limassol and Larnaca, and to the hinterland. The total network of national highways for the southern area makes up 1,472 km, about 90% of which are paved and the remainder gravel-surfaced.
B. Transportation Policy, Planning and Coordination
1.05 The Planning Bureau centralized economic planning for the Government integrating development plans for all sectors including transportation. The events of 1974 interrupted implementation of the third Five-Year Plan (1972-76) which has since been replaced by the first and second Emergency Economic Action Plans (1975-76 and 1977-78). After the disruptions of 1974, the Government concentrated on immediate transportation needs but it is now beginning to focus on long-term planning.
1.06 The organization of the Transport Sector follows the pre-July 1974 framework. The Ministry of Communications and Works (MCW) through its Departments of Public Works (PWD) and of Civil Aviation (DCA) is responsible for main roads and airports, the Cyprus Ports Authority (CPA) for ports, and the Ministry of Interior, the Forestry Department of the Mlinistryof Agri- culture and the Municipalities for the remaining roads. 1.07 The Government regulates public passenger and freight transport under the Motor Transport Regulation Law of 1974 as amended; the law is ad- ministered by the semi-independent Licensing Authority and by the Licensing Department in MCW. The Government controls fares and schedules for public transport routes and imports of buses and trucks. These controls and regula- tions are administered flexibly and there is competition in the industry.
C. The Ports and Port Planning (Map IBRD 13170R2)
1.08 Until July 1974, the main general cargo port in Cyprus was Famagusta; in 1973 it handled over 80% of the total traffic passing through Cyprus ports. Next in importance were the ports of Limassol and Larnaca both located on the south coast, 55 miles and 23 miles from Nicosia. Two other ports, Paphos in the southwest and Kyrenia on the north coast, handled onlj minimal amounts of traffic.
1.09 There are also two privately-operated mineral exporting ports - Karavostassi and Vassiliko/Zyyi; the first is on the northwest coast and the latter on the south coast between Limassol and Larnaca. Oil imports are handled at an offshore terminal at Larnaca.
1.10 As a result of the events of July 1974, general cargo ports of Famagusta and Kyrenia and the mineral port of Karavostassi are under Turkish control. This led to the entire traffic for Cyprus being handled through the ports of Limassol and Larnaca totalling some 2.3 million tons in 1976 compared with 1.8 million tons in 1973 (including Famagusta).
1.11 The ports of Limassol and Larnaca were developed during the period 1970-1974 (the former with Bank assistance) to provide berthage and equipment sufficient to meet a forecast traffic demand of some 600,000 tons by 1978 (against 2.3 million tons handled in 1976).
1.12 These two ports are capable of considerable development beyond the then planned capacity. Further studies for their expansion were undertaken in 1975 by Louis Berger, Inc. (USA) financed under the Highway Loan (904-CY) who also examined in 1976 the feasibility of developing the port of Paphos.
1.13 The proposed project for the ports of Limassol and Larnaca is intended to meet traffic demands until 1986/87. The Project also provides for the continuation of institution building initiated in the first ports project which was delayed by the events of 1974 and which is now more than ever essen- tial to ensure that CPA's management and operational capabilities continue to develop in keeping with the growth of the ports now and in the future. Further investment in port facilities will be kept under review and the Government and CPA have agreed not to undertake except with the Bank's agreement any major investments in port facilities unless they are justified by all appropriate financial and economic criteria. The proposed port developments at Paphos to which the Government is already committed are exempted from these restrictions. -3-
D. Previous Bank Group Transport Sector Operations in Cyprus
1.14 The proposed loan would be the fourth Bank Group operation for transport in Cyprus and the second for ports; the first three operations were:
(i) A loan was made for ports in May 1969 (Loan 628-CY - US$11.5 million) and helped finance developmentof a new deep-water port at Limassol. The project was completedin 1974. Due to the hostilities,consultants' recommendations for improve- ments in port administration,operations and accounting procedureswere not fully implemented.
(ii) Two loans were made for highways. The first of these approved in May 1973 (Loan 904-CY - US$5.4 million), was to have been used to help finance the constructionof the Nicosia-Morphou highway and access roads. As a result of the hostilities, constructionwas interruptedin July 1974 after only one month of work, and the Bank has agreed to the Government's request for the reallocationof US$3.6 million to the second project (Loan 1334-CY - US$10.0 million). This second loan will contributeto the financingof a new Nicosia-Limassol highway and became effective on October 11, 1977. The studies required under the first loan were completedand training of PWD staff is in progress.
II. THE PROJECT PORTS
A. General
2.01 The new ports at Limassol and Larnaca are well designed and have achieved high throughputsof general cargo in 1976, 1,700 tons per meter of quay at Limassol and 2,200 tons at Larnaca. The higher throughputat Larnaca is due to the incidence of exports of potatoes and cement for which X the loading rates are high, the cargo being pre-slung or palletized. These ports are currentlyhandling more than three times the volume of cargo anti- cipated at the time of appraisal of first port project largely due to the cooperationexisting between the various agencies involved in port operations, a decline in passenger traffic and the continuationof lighterageoperations at the old port of Limassol where a very satisfactorythroughput of 1,000 per meter of quay was achieved in 1976. In 1973 Famagusta achieved a throughput of 1,300 tons per meter of quay. The Bank estimated a throughput of 900 tons per meter of quay for the new port of Limassol when the first port project was appraised in 1969. -4-
B. Port Facilities at Limassol and Larnaca
Limassol - New Port (opened to traffic in June 1974)
2.02 The new port facilities consist of (i) a main and secondary break- water with an entrance depth of 12.0 m, (ii) quays totalling 800 m in length with an 11 m depth, (iii) transit sheds and produce-inspection sheds, (iv) cargo-handling and floating equipment. The breakwaters offer good protection against prevailing winds and port operations are only infrequently interrupted by wave action stemming from northeasterly winds.
Limassol - Old Port
2.03 This is a small, shallow-draft breakwater harbor with two quays, one of 160 m with a depth of 5 m and another of 100 m with a maximum depth of 3 m. There are two transit sheds, open space storage and some cargo-handling equipment.
Larnaca - New Port (opened to traffic in June 1973)
2.04 The new port facilities consist of (i) a main and secondary break- water with an entrance depth of 9.5 m, (ii) two berths with a total length of 326 m, (iii) transit sheds, and (iv) cargo-handling and floating equipment. In July 1977, floating pontoons became operational and added over 60% to existing capacity by providing a further 200 m of quay.
Traffic
2.05 In 1976, the total number of commercial vessels calling at Limassol and Larnaca was 3,170 of which 2,510 were general cargo ships, 364 container and roll-on/roll-off vessels. In addition, 219 passenger ships called at Limassol including cruise liners. Many of the cargo ships were small, which is a feature of the Eastern Mediterranean trade, averaging 2,900 dwt and 85 m length per ship. Total traffic at the project ports was 2.3 million tons in 1976, 1.6 million at Limassol, and 0.7 million tons at Larnaca. General cargo accounted for 35%; cement exports; 30%; grain imports, 7%; agricultural prod- ucts exports, 13%; and transit cargo, 13%. Container and roll-on/roll-off traffic is developing rapidly; 17,000 containers were handled in 1976.
2.06 Traffic projections have been made in detail up to 1985; general cargo is expected to increase from 793,000 tons in 1976 to 2.1 million tons in 1985; cement exports tc remain stable at 690,000 tons. Fertilizer imports will be replaced by exports once the new fertilizer plant comes into opera- tion. Traffic projections are summarized below and additional details are given in Chapter IV and in Project Files. -5-
1973 1976 1977 1981 1985 (actual) (actual) ------estimated------(Tons '000s)
General Cargo Imports - 439 550 770 1,030 Exports - 354 455 745 1,050 Subtotal - 793 1,005 1,515 2,080
Dry Bulk Imports 223 240 245 300 Exports - 731 730 750 750 Subtotal - 954 _970 995 1,050
AgriculturalProducts Exports - 290 380 435 515
Transit Cargo Imports - 169 170 190 215 Exports - 118 170 190 215 Subtotal - 287 340 380 430
Total Traffic 1,821 2,324 2,695 3,325 4,075
of which Limassol - Old Port 238 260 260 260 260 Limassol - New Port - 1,346 1,550 2,200 2,560 Larnaca - New Port 60 718 885 865 1,255 Famagusta 1,523 - - - -
C. Port Administration
The Cyprus Ports Authority (The Borrower)
2.07 The Cyprus Ports OrganizationLaw No. 38 of 1973 establishedthe Cyprus Ports Authority (CPA) as a body corporategoverned by this law to manage and exploit the ports in the Republic and to undertakeand manage the existing ports with all their assets and liabilities. The Authorityis managed and acts through a Board of seven members consistingof a chairman,vice chairman and four members appointed by the Council of Ministersand the Director of the Department of Customs (ex-officio). The day-to-day management of CPA and implementation of Board decisions is carried out by the General Manager, who is appointed by the Council of Ministers in consultationwith the Board. By law, CPA is empowered to: (i) regulate and controlport operationsand provide navigationalservices and (ii) levy dues and charges for the use of the ports and their installations. CPA also (i) operates as a commercial entity, (ii) can own, acquire, rent and lease property,and (iii) has authority to borrow from the Governmentor other sources. The legislation is adequate for the purposes of the project and for lending operations. -6-
2.08 CPA is resporsible for cargo storage but does not undertake cargo handling on ship or on shore, the stevedores and shore cargo-handlingworkers being engaged by the shipping agents or licensed porters acting for the shippers. Section 30 of the CPO Law of 1973 provides for the regulation of these services by CPA and for the issue of licenses to and the control of charges levied by the Licensed Porters.
Organizationand Management
2.09 CPA's management structure at present comprises the General Manager, the Finance Manager, the Operations Manager and the AdministrationManager.
2.10 Due to the events of 1974, considerabledelay was experienced in setting up the management structure. The General Manager was not appointed until December 1975; the appointmentsof the Finance and Administration Managers were confirmed only in 1977. A serious gap in the management struc- ture is the absence of an Operations Manager and CPA has undertaken to fill this position on or before August 31, 1978. The various personnelat the ports, previously under the control of the Ports Department of the Ministry of Communicationsand Works and the Customs Department,were transferredon October 1, 1977. It is therefore premature to formulate any judgment on the management'soverall performance. However, the operationalefficiency of the ports at Limassol and Larnaca is a tribute to the ability of the personnel at the ports. The cooperationwhich has existed between them and the shipping agents, stevedoresand licensed porters and labor unions has overcome the considerabledifficulties in moving cargo more than three times that antici- pated by traffic forecasts.
2.11 The compositionof CPA's staff is as follows:
General Manager's Department 2 Finance Department 12 AdministrationDepartment 18 Operations Department 211 (of which 155 at Limassol, 56 at Larnaca)
Further appointmentsto be made include the creation of a Technical Services Unit (which is discussedunder para 2.14 on Maintenance)and an Internal Audit Section. It is essential that the Technical Services Unit be formed as soon as possible and CPA has agreed to establish such a unit not later than December 31, 1978.
2.12 Provision therefor has been made in the proposed project for consul- tancy services to strengthen CPA's capabilitiesin management and operational proceduresand undertake the required training.
Pquipmentand Maintenance
2.13 Forklift trucks are owned and operated by the licensed porters'who are responsiblefor their maintenance. Maintenance of facilities and other equipment is at present carried out by the Public Works Department. -7-
2.14 The Technical Services Unit referred to.in para 2.11 will be respon- sible for the maintenanceand repair of all property, equipment,machinery and other facilities,and the project includes provision of fully-equippedwork- shops at the ports to ensure adequate and efficient maintenance (para 3.17). The licensed porters have indicated that they would prefer CPA facilities which would be more suitable for their maintenancerequirements.
D. Operations
2.15 In 1976, some port congestionwas experiencedand this continued into 1977. Ships' waiting time in 1976 was 2,600 days and the conference lines imposed congestionsurcharges (paras 4.18 and 4.23). If required, the ports now operate up to 14 hours a day through the introductionof the extra shift, 1700 hours to 2300 hours, the decision to work the extra shift being that of CPA, not of the shipping agents. It is anticipatedthat this over- time shift will be extended to a full second shift of eight hours in 1978. The feasibilityof introducinga third shift was discussedduring negotia- tions (para. 3.10). Relations between employers and employeesare good and no serious labor disputes have occurred.
2.16 The very satisfactorycargo-handling performance under difficult conditionsin 1976 is borne out by the following indicators: general cargo, tons per gang hour, 12.to 15 tons, 25/31 tons for palletizedcargo, 38/50 tons for bagged cargo, 39 tons for roll-on/roll-off,7/10 units for containers (handledby floating crane) and 165 tons for grain. Containerhandling and roll-on/roll-offperformance will be much improved by facilitiesproposed in the project.
E. Finance, Accounts and Audit
General
2.17 CPA's accountingsystem is based on the recommendationsof the con- sultantsappointed under the first Bank loan, suitably updated. Depreciation rates are adequate; assets for Limassol and Larnaca are on a cost basis; those for other ports were revalued on a replacementcost basis as at July 1, 1971. CPA will revalue assets from time to time on a replacementcost basis in accordancewith the covenantsin Loan Agreement 628-CY and the CPO Law of 1973.
2.18 CPA's revenues are mainly derived from dues on ships (28%), cargo (55%)and storage (15%). Some additionalrevenue is derived from renting premises to port users.
2.19 The annual revenues after meeting operatingexpenses including depreciationare applied to provide for: -8-
(i) loan amortization; (ii) replacement of assets; (iii) working capital; and (iv) reserves for improvement and development of port facilities.
The Council of Ministers may, after due consideration of CPA's investment plans, give directions as to the payment of the remaining surplus.
2.20 CPA's annual budget for current and capital expenditures is sub- mitted to the Council of Ministers for approval.
2.21 CPA's accounts will be audited by the Auditor General of the Republic. CPA is considering the employment of additional auditors to meet commercial audit requirements. Since 1977 will be the first full year for which audited accounts will be available, the Bank can only make the general observation that the Auditor General is acceptable as an independent auditor but would welcome the appointment of more commercially-oriented auditors.
2.22 CPA is required by law to submit not later than June 30 in any year to the Minister of Communications and Works an annual report on the discharge of its functions and the policy and program followed by it. The annual report will include a copy of the audited accounts.
Insurance
2.23 The CPA Law of 1973 provides that CPA shall be insured against all losses of or damage to any vessel, property or goods entering, leaving, re- maining or stored in the precincts under its control caused by CPA personnel or equipment. CPA will make arrangements satisfactory to the Bank for cover- age of these and other risks in accordance with appropriate port practice.
Tariffs
2.24 As provided in the first ports project, a satisfactory accounting system was introduced but the consultants' proposals on tariffs were not im- plemented. Dues and charges continue to be levied on the same basis as formerly, i.e., before CPA was established and are not directly related to the cost of providing services. Costing information as such does not yet exist and it may be that CPA operates at a loss on berthage and pilotage. However, CPA has so far generated revenues sufficient to ensure a reasonable return on net fixed assets in operation in accordance with Loan Agreement 628-CY.
2.25 At present, the principal charges for port services are as follow:
1. Harbor Entry Dues 30 mils per NRT up to 800 NRT 15 mils thereafter
2. Berthage 12 mils per NRT per day with a 25% reduction for export vessels - 9 -
3. Pilotage including use of tugs is levied on an NRT basis on entry and departure with a 25% reduction for export vessels.
4. Wharfage Dues
On imports range from 200 mils to 2,400 mils per 1,000 kg On exports range from 10 mils to 300 mils per 1,000 kg
5. There are also charges for the use of cranes, for warehousing and overtime working. The full range of tariffs is detailed in Project Files.
2.26 In order to develop cost related charges so far as possible, the tariff structurewill be reviewed by CPA with the assistance of consultantsas necessary to enable such charges to be introduced by December 31, 1981. CPA is presently consideringchanging the basis of assessing berthage to per meter of ship's length per day or part thereof from NRT per day as recommended by the Bank under the first loan.
2.27 Overtime charges, for mooring vessels and the use of equipment, levied by CPA in 1977 are estimated to produce a revenue of LC 352,000 against a cost of LC 185,000 which could be regarded as having the effect of a congestion surcharge on port users.
III. THE INVESTMENT PLAN AND THE PROJECT
A. The Port Investment Program
3.01 Long-term developmentplanning was disrupted by the events of 1974. Although the Government is still implementingthe second EmergencyEconomic Action Plan (1977-1978),more attention is now being given to long-term planning (see para 1.05). CPA, based on a review of master plans and of feasibilitystudies by Louis Berger International(LBI) (USA), for the expansion of the ports of Limassol and Larnaca, has prepared a ports invest- ment program for the period 1978-1982.
3.02 As agreed with CPA the program has been divided into two parts: Part A consisting of the proposed project which will proceed as scheduledand which amounts to 64% of the total, and Part B whose execution will depend on financial resources being available.
3.03 The principal elements in the program are: - 10 -
TOTAL COST LOCAL COST FOREIGN COST …(------tLC '000)------
A. Proposed Bank Project (Details in this chapter) 11780 4830 6950
B. Other Projects
Larnaca Construction of 340 m quay and two transit sheds 3410 1360 2050
Land acquisition Limassol 1450 1450 - Larnaca 670 670
Additional equipment and miscellaneous items 1090 90 1000
Total B 6620 3570 3050
Total 18400 8400 10000
3.04 A 30,000-ton capacity grain silo presently being constructed at Limassol, is complementary to the proposed project. The silo is due for completion in 1979, and its cost is being borne by the Grain Commission, which is the Government Agency responsible for the importation and distribu- tion of grain in Cyprus.
B. Project Objectives, Dimensions and Timing
Objectives
3.05 The main objective of the project is to relieve present and antic- ipated congestion at the project ports and to accommodate future traffic; in 1976 ship-waiting time was about 2600 days with an average berth occupancy of 88%. Specialized berths, adequate cargo handling equipment and sufficient open and covered storage areas will improve cargo handling operations and throughput capacity of the ports. Improved management, proper port mainte- nance and training of port personnel will increase operational efficiency. The project will complement the improvements being carried out to the Nicosia- Limassol highway, financed by the Bank's second highway loan and ensure that the benefits stemming from this project are fully achieved. - 11 -
Dimensions
3.06 The scope of the project has been determined taking into account the political situation, investment priorities and traffic growth. Without investment restrictions, a more ambitious project might have been proposed. However the proposed project provides for sufficient port facilities to cope with forecast traffic up to 1983 at minimum cost, i.e. it is the least cost solution and accords with an investment policy which minimizes risks since it allows more time for development of traffic trends and the possibility that the port of Famagusta might become available.
Timing
3.07 Although berthing capacity at Larnaca has been expanded about 60% with the acquisition of floating pontoons which commenced operations in July 1977, that development represents an increase of only 14% in overall port capacity and can only serve to postpone serious congestion in the short term.
3.08 The throughput of the ports of Limassol and Larnaca has also been increased by 21% through overtime working as discussed in para 2.15 above. This throughput could be increased by a further 15% if the present level of overtime working is extended into a second full shift.
3.09 From 1979, the two ports will likely incur increasingly severe congestion even with the implementation of the second full shift. It is estimated that the proposed project will be completed two to three years late relative to its optimum timing and this is reflected in the high rates of return shown for the project in the economic analysis.
3.10 The feasibility of introducing a third shift was discussed during negotiations as throughput could be increased by a further 25 to 30%. While a third shift is already worked for special cargoes e.g. grain, its intro- duction presents operational difficulties. CPA has however agreed to keep the possibility of introducing a third shift under review.
C. Project Description (Maps IBRD 13171R1 and 13172R2)
3.11 The project consists of:
Civil Works
Limassol: (a) Construction of about 480 m of quay, with a depth of 11 m, including two berths for container vessels, one for passenger ships and a Roll-on/Roll-off ramp.
(b) Paving and surfacing roads, open storage and parking areas.
(c) Construction of transit sheds and warehouses. - 12 -
(d) Constructionof passenger terminal, port administration and ancillary buildings.
(e) Provision of utilities including inter alia water supply, electricity,drainage, sewerage, etc.
Larnaca: (a) Constructionof a transit shed.
(b) Paving and surfacing open storage and parking areas.
(c) Constructionof baggage hall and port administration and ancillary buildings.
(d) Utilities (water supply, electricity,drainage, sewerage,etc.).
Equipment
Limassol: (a) Cargo handling (mobile cranes) and container handling equipment and workshop equipment.
Larnaca: (b) Cargo handling equipment (mobile cranes) and workshop equipment.
TechnicalAssistance
(a) Consulting services for engineering design and super- vision of civil works.
(b) Additional site investigations as may be required for the preparation of (a) above.
(c) Consultingservices to assist CPA on management, operationaland technicalpolicies and procedures.
(d) Training of CPA personnel and port workers.
D. EngineeringEvaluation
General
3.12 In evaluating the project, the following general considerationswere taken into account:
(i) all technical data required for final design is either available or will be satisfactorilyproduced to enable consultants to prepare a final design; - 13 -
(ii) final design and cost estimates are realistically, based on availabilityof materials and labor, and in accordance with soil conditions;
(iii) maintenanceof productivitylevels through the pro- vision of adequate port equipment and proper mainte- nance and repair facilities;
(iv) the necessary technical support required for the imple- mentation of the project.
Engineering
3.13 Limassol port expansion is based on a master plan study by Rendel, Palmer and Tritton (RPT), (UK), later revised by LBI. The proposed project consists mainly of the constructionof new berths within the existing lee breakwater,and will be fully protected against wave action. The addi- tional length of berths (480 m) to be built is sufficient to cope with traffic forecast up to 1983 (see Chapter IV) and its alignment as modified by CPA, PWD and Coode and Partners (CP), (UK), was agreed by the Bank as it permits the reclamation of the necessary backup areas which could be further extended at a low cost when required.
Technical Data
3.14 Previous soils borings and hydraulic studies show that the site has suitable soil conditionsand enough protection against wave action. CPA will carry out additional soil investigationsto confirm the above. Design live loads, berthing forces, container crane wheel-loadsand any other technical data are to be defined by the consultants taking into account that only 360 m out of the total length of 480 m of quays will be designed for container operations.
Design and Supervision
3.15 CP, consulting engineers,have been appointed to prepare engineering design and tender documents and to supervise constructionof main civil works. Local consultants,yet to be appointed and satisfactoryto the Bank, will prepare the buildings design. CPA has entered into an agreement with PWD for the provision of adequate technical support during the implementationof the project, including site investigations. Soil boring should be supervised by CP as PWD has the equipment and personnel but little experience in underwater soil investigation.
3.16 General engineering criteria are as follows:
(i) Berths at Limassol: The 480 m long berths will be designed to a depth of 11 m and the type of constructionwill be defined in the light of soil investigations. A ramp for Roll-on/Roll-offvessels will be built at the northeast corner. The passenger terminal building will be located at the southern end of the berths. - 14 -
(ii) Paving
At Limassol: About 200,000 m2 as follows:
(a) about 130,000 m2 for a container stacking area and Roll-on/Roll-offtrailers' parking to cope with forecast traffic of about 69,000 containers in 1985;
(b) about 50,000 m2 of open storage area at the back of northern quays, i.e. about 120 m2 per linear meter of quay;
(c) about 20,000 m2 of parking areas and access road to the passenger terminal;and
(d) about 10,000 m2 of roads and parking areas of adminis- tration buildings, workshops, etc.
At Larnaca: About 60,000 m2, as follows:
(e) about 50,000 m2 of open storage area for general cargo, i.e. 147 m2 per linear meter of berth (exclusiveof floating pontoons); and
(f) about 10,000 m2 of roads and parking areas.
(iii) Covered Storage
At Limassol: About 30,000 m2, as follows:
(a) about 10,000 m2 of transit sheds on the northern quays backup area, thal:added to existing sheds will total 26,800 m2, i.e. 34 m2 per linear meter of quay;
(b) about 10,000 m2 of consolidationshed for stuffing and unstuffing containers;
(c) about 10,000 m2 of warehousing space.
At Larnaca:
(d) a transit shed of about 6,000 m2 to serve the floating pontoons, i.e. 30 m2 per linear meter or berth.
Equipment
3.17 To maintain some productivitylevels and improve others, equipment needs and maintenance requirementswere also evaluated as follows: - 15 -
(a) Containerhandling equipmentat Limassol will consist of a 40-ton containercrane and two straddle carriers; this equip- ment will be able to double the present productivityobtained with a 35-ton level luffing crane; there is also a 60-ton floating crane at Limassol that is temporarilyon loan to CPA by the Greek Governmentand will eventually be returned to Greece;
(b) Mobile cranes will replace old ones at Limassol and will equip Larnaca to handle general cargo;
(c) Ports workshop equipment. To repair and maintain port equip- ment, CPA presently depends largely on PWD's workshopswhich are located some distance away from the port areas. PWD owns a considerably large amount of equipment, port equipment usually is not given priority. There are two possibilities either to increase PWD's maintenance capability or to provide separate facilities for the ports. On balance the latter is the better solution. The provision of ports workshops will improve maintenanceand repair and consequentlycontribute to improving cargo handling productivitylevels at the ports. CPA is, therefore, setting up a Technical Services Unit, which will, inter alia, be responsiblefor port equipmentmaintenance.
ConsultancyServices
3.18 The technical support required for the implementationof the project was discussedwith CPA as follows:
(a) Engineeringdesign and supervisionas describedin para 3.15.
To ensure the completionof institutionalreforms envisaged in the first port project, whose introductionhas been delayed:
(b) Experts in the administrationand operation of ports to advise and assist CPA:
(i) on management,operational and technicalpolicies and procedures,
(ii) in establishingcost based tariffs and the revaluation of assets, and
(iii) in providing vocationaltraining programs either inside or outside CPA for CPA personneland port workers.
The consultantsrecommendations under (b) will be submitted to the Bank for review and comment prior to action thereon by CPA. - 16 -
Bill of Quantitiesand Cost Estimate Criteria
3.19 Cost estimates reflect the availabilityof local construction materials and labor, and also the fact that local contractorsare unlikely to undertake the constructionof main civil works as they lack the construction equipment and the experience required. Bills of quantities were computed based on preliminaryengineering and constructionequipment rates are based on actual productivityduring constructionof existing port facilities.
3.20 Percentagesof foreign exchange currency expenditureswere deter- mined following the Bank's guidelinesand based on data from the previous Bank financed port project at Limassol.
E. Cost Estimates
3.21 The total cost of the project is estimated at LC 11.8 million or US$29.5 million equivalent. The foreign exchange component is US$17.4 mil- lion (about 59%). Cost estimates were reviewed and agreed with CPA at nego- tiations; contingencieshave been adjusted in accordancewith the project execution program. A summary is given below: - 17 -
Foreign --- LC Million------US$ Million------Exchange Local Foreign/3 Local Foreign/3 Component Currency Exchange Total Currency Exchange Total Z
A) Limassol i. Constructionof 480 m of quays 1.43 2.08 3.51 3.58 5.20 8.78 59.0 ii. Roads and paving 0.24 0.25 0.49 0.60 0.63 1.23 51.0 iii. Storage facili- ties 0.55 0.47 1.02 1.37 1.18 2.55 46.0 iv. Buildings 0.63 0.29 0.92 1.57 0.73 2.30 32.0 v. Equipment 0.05 1.23 1.28 0.12 3.08 3.20 96.0
B) Larnaca i. Roads, paving and utilities 0.26 0.19 0.45 0.65 0.47 1.12 42.0 ii. Storage facili- ties 0.21 0.18 0.39 0.53 0.45 0.98 47.0 iii. Buildings 0.16 0.08 0.24 0.40 0.20 0.60 33.0 iv. Equipment - 0.30 0.30 - 0.75 0.75 100.0
C) Contingencies i. Physical /1 0.57 0.62 1.19 1.43 1.55 2.98 52.0 ii. Price /2 0.61 0.78 1.39 1.53 1.95 3.48 56.0
D) Technical Assistance i. Engineeringdesign and supervision 0.09 0.36 0.45 0.22 0.90 1.12 80.0 ii. Management and administration 0.02 0.08 0.10 0.05 0.20 0.25 80.0 iii. Other studies 0.01 0.04 0.05 0.03 0.10 0.13 80.0
Total: Project Cost Estimates 4.83 6.95 11.78 12.08 17.39 29.47 59.0
/1 Physical contingencies - 15% for civil works, 8% for equipment. /2 For calculatingprice contingencieson local and foreign components, followingexpected inflationrates were used:
1978-79 1980-81
For civil works 9% p.a. 8% p.a. For equipment 7.5% p.a. 7% p.a.
Cost estimates of civil works are based on the feasibilitystudy prepared by LBI in 1976 and on prices given by the PWD resultingfrom updating those of previous contracts for similar works. They reflect estimated 1978 prices. - 18 -
Equipment costs are based on quotations from foreign suppliersat the end of 1976 updated to reflect current prices. Costs of consultant'sservices are based on estimated required manpower which amounts to about 180 man-months of experts and about 200 man-monthsof techniciansat the rates of US$5,000/month and US$3,000/monthrespectively.
3.22 An average contingencyof 14.2% of total project cost,,including physical contingenciesbut excluding the cost of technical assistance,has been allowed for expected cost increases (see footnotes to the cost estimates under 3.21 for details).
3.23 Cost estimates do not include any taxes, fees or duties on plant, vehicles, equipment or materials imported for use by or for CPA, since CPA is exempted from payment of such taxes, fees or duties by Clause 28(a) of CPA Law of 1973.
3.24 An analysis of the costs of delays in project execution has been conducted. It shows that a delay of six months would increase the project costs by about US$1.1 million and a delay of one year by US$2.3 million.
F. Financing Plan
Bank Loan
3.25 The proposed Bank loan of US$8.5 million will contributetowards the foreign exchange of the following project elements to the extent stated:
US$ million
Port of Limassol:
Constructionof quays, utilities, roads and paving 5.8 Technical assistance 1.2 Contingencies 1.5 8.5
3.26 The financing plan is summarized below:
Source of Finance Local Foreign Total ------US$ Million------
IBRD - 8.5 8.5 Internally generated CPA funds 12.1 - 12.1 Goverment - 8.9 8.9 12.1 17.4 29.5
3.27 The Bank loan will be to CPA on standard Bank terms at 7.45% interest for a period of 15 years including 3 years of grace. - 19 -
3.28 The CPA Law of 1973, Clause 12(i), gives CPA the power to secure loans from the Governmentor other sources on terms and conditionsas may be approved by the Government. A condition of effectivenessof the proposed loan will be the completion of satisfactoryagreements regarding the pro- vision of funds by or through the Government sufficient to meet the balance of the foreign exchange costs not covered by the Bank loan. It is expected that local currency costs to the extent stated above (para 3.26) will be financed from CPA's internally generated funds. The Governmenthas guar- anteed cost overruns.
G. Project Execution, Supervisionand Reporting
3.29 The CPA is competent to execute the project with the technical support of PWD and the assistance of consultantsfor (i) preparationof engineering design, tender documents and evaluation of tenders of civil works, (ii) monitoring project execution including the critical path program and (iii) supervisionof construction. The consulting engineers have been employed in accordance with the Bank's guidelines. The terms of reference for management and administrationconsultant services were discussed and agreed during negotiations.
3.30 The critical path program for project execution was discussed and reviewed with CPA during negotiations. The implementationschedule is as follows:
1. Main Civil Works
Selectionof consultants October 1977 Additional site investigations October 1977 - February 1978 Final engineering October 1977 - April 1978 Prequalificationof contractors March - May 1978 Tendering June - September 1978 Construction December 1978 - December 1981
2. Equipment
Preparationof technical specifications July - September 1978 Tendering October 1978 - January 1979 Manufacturingand supply July 1979 - September 1981
3. Storage, buildings and utilities
Final engineeringand tendering October 1977 - April 1978 Construction January 1979 - December 1981
Consultants for management and administrationand revaluation of assets will be recruited as required not later than December 31, 1978. Training programs will be implemented from 1979 to 1980. The planning allows for a period of about one year for engineeringdesign and procurementprocedures. The project is expected to be completed by the end of December, 1981 and the loan would be closed on June 30, 1982. - 20 -
3.31 Monitoring the project and interface for relations with the Bank will be carried out directly by CPA with the assistance of PWD and the consultants. CPA will also prepare quarterly progress reports which shall include engineer- ing, procurement,progress of constructionand consultancyservices, traffic statistics,financial statementsand disbursementschedule, port efficiency indicatorsand critical path program. Copies of these reports, the format of which was agreed with CPA during negotiations,will be sent to the Bank.
3.32 During the project implementation,CPA will generate the information needed for CPA in cooperationwith the Bank staff to produce the project com- pletion report (PCR) which should be submitted to the Bank not later than 6 months after the loan closing date. This matter was discussed and agreed wtih CPA during negotiations.
H. Procurementand Disbursement
Procurement
3.33 Procurement of items financed by the Bank will be done on the basis of internationalcompetitive bidding, in accordance with Bank guidelines.
3.34 It is expected that one single contract will be awarded for main civil works to be financed by the Bank at Limassol; it is unlikely that local contractorswill be qualified to submit tenders for these main works. All other civil works at Limassol most probably will be undertaken by local con- tractors either under separate contracts or as subcontractorsto the main civil works contractor. Procurement of equipment and civil works at Larnaca, none of which is to be financed by the Bank, will depend on the sources of financing. Project components proposed for Bank financing was discussed and agreed with CPA during negotiations.
Disbursement
3.35 Disbursementsfor civil works (quays,utilities, roads and paving) at Limassol will be on the basis of 58Z of the total cost. Technical assist- ance will be reimbursed on the basis of 100% of foreign expenditures;all local expenditureswill be financed by CPA. The tentativeschedule of dis- bursements of the Bank loan which was discussed with CPA during negotiations, is as follows: - 21 -
IBRD Fiscal Year Cumulative Disbursements and Quarter Amount at end of quarter ------(US$ O)…------
FY1979
Sept. 30, 1978 150 150 Dec. 31, 1978 500 650 March 31, 1979 300 950 June 30, 1979 450 1400
FY1980
Sept. 30, 1979 600 2,000 Dec. 31, 1979 800 2,800 March 31, 1980 900 3,700 June 30, 1980 1,100 4,800
FY1981
Sept. 30,-1980 1,200 6,000 Dec. 31, 1980 1,200 7,200 March 31, 1981 300 7,500 June 30, 1981 200 7,700
FY1982
Sept. 30, 1981 250 7,950 Dec. 31, 1981 250 8,200 March 31, 1982 300 8,500
Retroactive financing may be necessary, up to US$150,000 from October 1, 1977 for consultingengineering services.
I. EnvironmentalImpact
3.36 Existing environment is likely to be improved as the project includes some favorable additional elements, i.e. the provision of welfare and sanitary facilities for port workers. CPA will also examine the steps to be taken to deal with pollution due to ships wastes and/or spillagesin the ports under its jurisdictionand will submit not later than December 31, 1978 its recommendationsto the Bank for review and comment prior to taking any action. - 22 -
J. Impact on Employment
3.37 The combination of traffic growth and implementation of a second shift will require an estimated 300 additional stevedores and porters by 1981 and a further 150-200 by 1985. Displaced Famagusta port workers (about 250), who are now under-employed,can be readily absorbed into the port labor over the next three years.
3.38 The provision of additional cargo-handlingequipment and ports workshops will also require additional labor, as at present, equipmentmain- tenance is not done by the ports but contracted outside (PWD and/or private workshops). An estimated 25-30 skilled workers will be required.
IV. ECONOMIC EVALUATION
A. General
4.01 The first ports project in Cyprus was completed in 1974 and, in retrospect,it can be seen that the traffic increases and the capacity of the ports were considerablyunderestimated. It therefore appears that the scope of the first project was too limited. The project now proposed is in essence a follow-upto the first and has been defined bearing in mind invest- ment needs in other transport subsectorsand other key economic sectors.
4.02 For the purposes of the economic evaluation, the project is defined to include the new quays at Larnaca, as well as the Bank project (para 3.11), which are expected to be developed simultaneouslyif financial resources are available. The proposed project is fully Justified as borne out by the satisfactoryrate of return and the urgent need to expand port capacity to meet forecast traffic demand. In addition to normal sensitivityanalyses, the project has also been evaluated under the assumption that a port is constructedat Paphos (para 1.13) and, alternatively,that port capacity at Famagusta becomes available as a consequenceof political settlementson the island. The economic return to the project remains acceptable under these circumstances.
B. Traffic Analysis
Recent Developmentsand Future Prospects
4.03 Virtually all Cypriot foreign trade passes through its ports: air .freightaccounts for less than 1% of total cargo movements. Bulk mineral exports and petroleum imports, which comprise 30% of total traffic, move through specializedport terminals. The remaining trade is handled by Limassol and Larnaca ports. - 23 -
4.04 In spite of the severe economic setbacks suffered by Cyprus during 1974, total port traffic by 1976 had again reached 1973 levels of 3.3 million tons. Cargo handled by the two general cargo ports totaled 2.3 million tons, compared to a combined total of 1.8 million tons for Famagusta/Limassol/ Larnaca in 1973. The recovery of trade volume is attributableto the rapid economic growth achieved since 1975, as well as to a number of special factors, which prompted a significantincrease in the shipment of agriculturalproducts to Western Europe and in exports to Lebanon and the Middle East generally.
4.05 Macroeconomicprojections for Cyprus assume a continuing high, but declining,rate of economic growth over the next five years. Real GDP growth of 8-1/2% per annum is expected in 1977/78, slowing to a level of about 5% per annum after 1980. The foreign trade sector should demonstrateparticular strength: export-importvalues, in constant prices, are likely to increase by 20% in 1977 with a further growth over the next five years of about 10% per annum and 7% per annum for exports and imports, respectively. Exports of manufactured goods and imports of non-fuel raw materials and capital goods will lead this trade expansion, and accordingly,an important share of traffic growth will be concentrated in the general cargo ports.
Traffic Projections, 1977-85
4.06 The traffic projections discussed in the following sections are based on the above macroeconomicassumptions. However, a number of factors may interveneto affect the actual performanceof the economy. Various sensitivityanalyses (para 4.27) have, therefore, been applied to assess the impact of possible adverse variations in the projected economic growth; these confirm that the project remains economicallyjustified in these cir- cumstances.
4.07 Traffic expected through Limassol and Larnaca ports has been pro- jected to 1985. The methodology followed is presented in para 4.10. The traffic estimates project growth in the two ports' total volume from 2.3 m tons in 1976 to 4.1 m tons in 1985. General cargo traffic will account for three quarters of the increase with agriculturalexports and grain imports responsiblefor much of the remainder. The number of ships calling at the project ports is likely to increase at a somewhat slower rate (3,200 in 1976 to 5,200 in 1985) reflecting a general increase in the size of vessels, particularlyin the case of containerand grain ships.
4.08 Traffic projections for Limassol and Larnaca as well as the other bulk-handlingport facilitiesin Cyprus are summarized below: - 24 -
Traffic Projections 1977-1985
Cyprus Ports ('000 tons)
1976 (act.) 1977 (est.) 1981 1985
A. Limassol and Larnaca
Exports
Cement 688 690 690 690 Fertilizer - - 25 25 Asbestos 43 40 35 35 Agricultural 290 380 435 515 Other general cargo 354 455 745 1,050 Total 1,375 1,565 1,930 2,315
Imports
Grain 175 190 245 300 Fertilizer 48 50 - - Iron and steel products 60 100 160 225 Paper and paperboard 23 30 45 60 Other general cargo 356 420 565 745 Total 662 790 1,015 1,330
Transit Cargo
In 169 170 190 215 Out 118 170 190 215 Total 287 340 380 430
Total Limassol and Larnaca 2,324 2,695 3,325 4,075
B. Other Port Facilities
Oil (net imports) 772 810 985 1,195 Minerals (exports) 216 205 165 165 Fertilizer -raw material (imports) - - 120 120 -product (exports) - - 50 50 Total other facilities 988 1,015 1,320 1,530
Total Port Traffic 3,312 3,710 4,645 5,605 - 25 -
Basis for the Traffic Projlections
4.09 The traffic projectionspresented above were prepared on the fol- lowing basis:
(a) Cement. Exports of bagged cement accounted for 30% of total cargo volume at Limassol and Larnaca in 1976. The cement industry,which is predominantlyexport-oriented, was expanded by one third during 1976 and has benefited from buoyant market conditionsin the Middle East. Although there is scope for further expansion in manu- facturingand export capability (existingfacilities are operatingat 80% capacityand further plant expansion is a possibility)neither governmentnor industry officials forecast significantexport growth in the foreseeable future. Accordingly,traffic projectionsassume constant annual export volume at 1976 levels of about 690,000 tons. It is possible that Middle East developmentsin terms of market demand or competitioncould adverselyaffect cement exports from Cyprus in an intermediateto long-term period; the effect of this eventualityon the project has been considered under the sensitivityanalyses discussed later in para 4.27.
(b) Fertilizer. Cyprus is at present an importer of fertilizers and will remain so until completion of a domestic fertilizer plant in 1979. The new facility is planned to meet local requirementsand to export as much as 100,000 tons per year abroad. Raw material requirementsof phosphaterock and ammonia as well as most export shipmentswill be accommodated by private loading and unloading facilitiesat Vassilikoand will not affect traffic through Limassol or Larnaca. The traffic forecastsassume that beyond satisfying local requirementsestimated at 60,000 tons in 1981, the new plant will export 75,000 tons annually of which one third will move through Larnaca port.
(c) Minerals. Based on informationobtained from the Cyprus Planning Bureau, exports of metallicand non-metallic minerals are assumed to decline by 5% per annum to 1981, remaining stable thereafter. The drop in shipments reflects the continueddepletion in reserves of operating mines. Over the intermediateto long-termhorizon the development of new mineral reserves is expected to offset further export reductions.
(d) Agricultural Products. Under favorable production and marketing conditions, exports of agricultural products increased dramatically in 1976--by about 60% in volume terms--and are expected to grow by a further 30% in 1977. - 26 -
Government planners anticipate relatively modest growth in foreign sales over the next five years, until agricul- tural projects now under development enhance production capability. The value of these exports is projected to increase by 4% per annum to 1980, rising to 6% annually in the early 1980's. Growth in export volume will be some- what less. Potato shipments, which comprise one half of the total volume of agricultural exports, are assumed to remain stable at present levels, with citrus, grapes, wine and various vegetables and fruits accounting for all export growth in this sector.
(e) Foodgrains. Bulk maovements of imported foodgrains are expected to increase to meet the growing gap between domestic production and consumption, and traffic volume is assumed to expand at a rate equivalent to real GDP growth.
(f) General Cargo. For exports of general cargo items, traf- fic estimates are premised upon a rapid growth of the Cypriot manufacturing sector over the next decade, as projected by the Bank and the Cyprus Planning Bureau. This rapid growth is considered attainable in the light of the economic performance in Cyprus since 1975 and the industrial developments underway. The shipment of manu- factured goods, in constant value terms, is expected to grow by 20% in 1977, declining to 10% per annum by 1981 and to a slightly lower rate thereafter. These rates of growth are assumed to equate roughly to growth in physical volume. Imports will likely grow more slowly than exports, reflecting the high emphasis on import- substitution and the export of local production within the industrial sector, as well as the effect of policies to discourage consumption of imported foodstuffs and consumables. Growth in the manufacturing sector should, however, induce a fairly rapid increase in imports of capital goods and raw material intermediates, such as iron and steel, paper and paperboard products. Imports of other general cargo items are estimated to grow in volume by approximately 7% per year from 1977-1985.
(g) Transit Cargo. TraEfic in transit cargoes at Limassol and Larnaca ports increased substantially during 1976, largely in response to political disturbances in Lebanon and to congestion problems at various Middle Eastern ports. Although Cyprus is favorably located geographically to attract transit traffic between Europe and the Middle East, the potential market for these cargoes is uncertain in the light of new port developments in the Middle East; furthermore, the desirability of attracting this traffic - 27 -
is questionable,particularly in the absence of under- utilized port capacity in Cyprus. Transit traffic has been assumed to grow by 3% per annum to 1985.
4.10 The proportion of general cargo and transit traffic which is expected to be containerizedor otherwise carried in specializedRoll-on/Roll- off vessels is forecast to increase from the present 13% to 32% by 1985. This implies that about one half of containerizablegeneral cargo will be carried in containers. The number of full containers is estimated on the basis of the current average revenue tons per container, and a proportionalfactor has been applied to estimate the number of empty containers. The total number of containershandled (includingempties) is expected to increase from 17,000 in 1976 to almost 69,000 by 1985.
Distributionof Traffic
4.11 The present distributionof traffic as between Limassol and Larnaca is approximatelyas follows:
Limassol Larnaca
Cement 50 50 Potatoes - 100 Other AgriculturalProducts 90 10 Grain 100 - Other (General Cargo) 80 20
For traffic items other than general cargo, the present distribution,which generally is based on comparativeinland transportationand handling costs through the two ports or on the availabilityof specializedfacilities, will likely continue in the future. Containerized general cargo trade will be concentrated at Limassol with the provision there of container-handling equipment and special berths. With a road distance of only 44 miles between the two ports, relative inland transport costs are not a major factor deter- mining the port-wise distributionof general cargo traffic. Rather, the greater availabilityof port facilitiesand related shipping services at Limassol has favored that port and heavy shipping during the potato season can disrupt general cargo traffic at Larnaca. As facilitiesare improved at Larnaca, it is expected that the relative use of that port for conventional general cargo traffic will increase, and that ships will be directed to either port in such a way as to minimize waiting time and possible congestion.
4.12 The traffic projections for the two ports are summarized below:
1976 (act.) 1977 1979 1981 1983 1985 ('000 tons)
Limassol 1,606 1,810 2,010 2,210 2,610 2,820 Larnaca 718 885 1,020 1,115 1,060 1,255 - 28 -
4.13 The estimated berth utilizationfigures for the ports are shown below:
1977 1978 1979 1980 1981
With present facilities 89% 87% 92% 95% 97%
1982 1983 1984 1985 1986 With the Bank project and expansion of quays at Larnaca 64% 68% 72% 75% 79%
The 1977 utilization factor assumes the availabilityof the floating pontoons at Larnaca for a full year and the 1978 factor, the extension of the present overtime working into a full second shift. The high port utilization esti- mates for 1979 to 1981 imply that in the years immediatelyprior to completion of the additional facilities,port congestionwill become significant;by 1980, the number of ship waiting days will likely exceed 4000 per annum and the related costs will amount to more than US$10 million.
4.14 Failing a political settlementwhereby the port of Famagusta would become available (see para 4.29), some further expansion in port facilities or operating capacity would again be necessary by 1986/87, if the projected growth in traffic is to be accommodated.
C. Project Benefits
Nature of Benefits
4.15 The current economic program in Cyprus is to an important degree focused on industrialization,supported by increased imports of industrial materials and exports of finished products. Without the proposed project, this traffic would be heavily penalized by the higher transport costs that would result from delays at the two ports. The full consequential impact on economic development in Cyprus would be substantial.
4.16 The economic benefits accruing from the project have been conser- vatively estimated from a comparisonof the shipping and handling costs with and without the project. The "without project" situation is defined as having the existing facilities (approximately 18.5 berths in Limassol and Larnaca, includingnew floating pontoons),operating with a full second labor shift. The operation of a second shift is assumed to increase ship-day productivity by about 15% over present levels, which already have been enhanced by 20% or more since 1975 through the regular use of overtime labor.
4.17 The main benefits from the project would be:
(i) savings in ship-waitingtime, produced primarily by increased port capacity; - 29 -
(ii) savings in ship-servicetime and handling costs brought about by operation of the new container-handlingequipment, mobile cranes and storage sheds, and from the other elements of the project such as technicalassistance for operations and management, which together will contribute to improved port efficiency. The new container crane provided under the project may also serve to encourage the introductionof larger, more efficient main-line container ships to the Cyprus trade and reduce shipping costs. Only a portion of these benefits, i.e., the savings in ship-servicetime due to introduction of the container cranes, has been quantified;
(iii) improved safety and operationalefficiency of handling passenger movements within the ports, through the provision of new passenger facilities. These benefits have not been quantified.
Assessment of Benefits
4.18 Even with the assumed introductionof a second shift to improve throughput,the two ports will be operating near 100% capacity by the time the project is complete in 1981, and ship queuing time would theoreticallyextend towards infinity without the project. The ship waiting time that would occur without the project has been estimated and frozen at a level of 1.5 times the service time required in 1981 or about 9,500 ship-days; this is a conservative estimate. By comparison,the two ports have already experiencedapproximately 2,600 ship-days of waiting time in 1976 with an average berth occupancy of 88%. An average waiting cost per ship-day of US$2,500 has been assumed, based on the actual pattern of various types and sizes of ships handled at the port.
4.19 The savings in waiting time attributed to the project are assumed to commence at the beginning of 1982 and have been derived by deducting annual waiting times in 1982 to 1986 "with" the project from the level described under para 4.18. The waiting times and related ship waiting costs have been calculated through use of the Bank's Port SimulationModel. The allocable savings have been kept constant from 1986, the approximatetime at which further port capacity would need to be provided.
4.20 The use of new container-handlingequipment and facilitieswill reduce average ship-servicetimes by about one half, and total annual savings have been calculatedon the basis of projectedmovements of containerships and estimated costs per ship-day. These savings are exclusive of the reduced handling and transportationcosts for containermovements which will be derived under the project.
4.21 No benefits are ascribed to the project from the introductionof a second working shift, assumed to occur in 1978, or from the developmentof the floating pontoons at Larnaca.
Distributionof Project Benefits
4.22 Of the project benefits that have been quantified,only the share accruing to Cyprus has been taken into account for calculatingthe economic - 30 - return from the project. That share of benefits would ultimately be re- flected in reduced prices of imported goods to domestic and industrial consumers, and to improved net sales prices for Cypriot exports.
4.23 Savings in ship-waiting time should largely accrue to Cyprus, either as reduced demurrage charges in charter trade, or as avoided congestion sur- charges in liner trade; during the period October 1976 to March 1977, confer- ence lines imposed surcharges ranging from 5% to 25% of the normal level of freight tariffs. Credit for only two thirds of these savings has been taken in calculating the economic return, based on Cyprus obtaining 100% of the savings in charter trade (25% of total traffic), 100% of the savings in the trade derived by Cypriot-owned ships (accounting for 10% of liner volume), and 50% of the savings for the remaining liner shipping.
4.24 It is recognized that the benefits accruing to container liner traffic through the introduction of container handling equipment may not be easily passed on to Cyprus and, consequently, it has been assumed that only 50% of the related savings in ship-service time will be captured.
D. Economic Costs of the Project
4.25 Project investment costs already exclude customs duties on imports component as well as local taxes; price contingencies have been excluded from the economic costs used in estimating the economic return on the project. The economic costs cover all civil works and equipment components under the project, including those items such as passenger facilities and technical assistance for which project benefits have not been specifically quantified. Cost and benefit streams are as follows:
Capital Benefits
Ship-waiting Ship-service Net Benefits Costs /a Time Time (Costs) (US$ Millions)
1978 1.5 - _ (1.5) 1979 10.1 - - (10.1) 1980 15.3 - - (15.3) 1981 6.6 - - (6.6) 1982 - 15.6 0.6 16.2 1983 - 15.2 0.7 15.9 1984 - 14.7 0.8 15.5 1985 - 14.3 0.9 15.2 1986/89 - 12.1 1.0 13.1 1990 3.7 /b 12.1 1.0 9.4 1991/2000 - 12.1 1.0 13.1
/a Included is US$7.5 million for quays at Larnaca. /b Replacement of container handling equipment. - 31 -
E. Economic Return and SensitivityAnalysis
4.26 Based on the methodology and data presented in the foregoing sec- tions, the project yields a satisfactoryeconomic return of 31%, even under the conservativeassumptions made. The first year rate of return is estimated to be 39%, using a 10% discount rate. These results confirm the economic justificationof the project and its urgency.
4.27 The economic return was tested for its sensitivityto variations in the cost and benefit parameters. The results show that (a) a 25% increase in costs would reduce the economic return to 26%, (b) a 25% decline in benefits (already conservativelyestimated) would yield a rate of return of 24%, and (c) the two preceding adverse conditionsoccurring together would result in a 20% return. A straight 25% reduction in traffic at the two ports would, while making the project premature by about three years, still yield an economic return of 23%.
4.28 The proposed developmentof port facilitiesat Paphos (para. 1.13) would have some adverse impact on traffic volumes through Limassol/Larnaca, particularlyif it becomes operationalprior to 1986 while adequate capacity is already available to handle shipping requirements. However, Paphos is unlikely to divert significanttraffic from the existing port facilities: the port would serve a relatively underdeveloped and agriculturally-oriented hinter- land comprising less than 10% of the Cypriot population and, relative to the other ports, it would entail higher inland transport costs for traffic destined for or originating from other areas of Cyprus. Traffic through the port would consist largely of agricultural exports from the region and lesser amounts of general cargo. Traffic diverted from Limassol/Larnaca would probably not exceed 150,000-200,000tons annually. The impact of the Paphos port develop- ment on the project has been assessed under the conservativeassumption that it becomes operationalin 1983 with an initial capacity of about 400,000 tons annually, roughly equal to two years' growth in Cypriot port traffic volume. On that basis, the economic return of the project would be 26%.
4.29 The project has also been examined from the standpoint that a political settlement in Cyprus may evolve, which would reintegrate the island economicallyand permit the use of existing transportationfacilities in the northern zone, including available port capacity at Famagusta. An analysis has been made of the potential effect on traffic volume at Limassol and Larnaca under those circumstances. Assuming full use of the Famagusta facil- ities, the impact would be to reduce traffic at the two southern ports by 29% in 1981 and 18% in 1985 and would have an even greater impact on service time requirements. Notwithstandingthis, the expansion of facilitiesat Limassol and Larnaca would still be justified by 1985. A sensitivityanalysis has been made under the assumption that the Famagusta facilities become avail- able and fully utilized in 1982, the first year in which the project becomes operational;under these assumptions,the correspondingeconomic return for the project declines to an acceptable 20%. The project therefore represents an economicallyjustified investment in transportationinfrastructure in the - 32 -
context of the whole island; in addition, the project includes specialized cargo handling facilities and equipment which will benefit both the north and south zones should reintegration occur.
V. FINANCIAL EVALUATION
A. General
5.01 While it is early to formulate judgements on CPA's financial per- formance due to the short period of its existence (the assets and liabilities of existing ports were transferred to CPA on August 1, 1976), indications are that the quality of the financial management is good. Increases in tariffs ranging from 50% to 100% were introduced on August 1, 1976 and the structure is currently under review. The revaluations of assets on an indexing basis is also being considered. These measures will be supported by the technical assistance provided in the proposed project.
5.02 The Balance Sheets at December 31, 1976 and 1977 as summarized below include the fixed assets taken over on August 1, 1976, in accordance with the terms agreed with the Government.
Fixed Assets 1976 1977 (LC '000s)
At August 1, 1976 12,927 12,927 Additions to date 243 1,134 13,170 14,061 Less Depreciation 116 428 Work-in Progress 13,054 13,633 159 129 13,213 13,762 Net Current Assets 364 1,465 Capital Employed 13,577 15,227
Represented by
Equity 609 2,259 Government Loan 12,968 13,577 12,968 15,227
Current ratio 1.6 2.4 Debt/equity ratio 96/4 85/15
5.03 The value of assets transferred to CPA is as follows: - 33 -
Replacement Depreciation Written Down Value at up to Value at 7/1/71 7/31/76 8/1/76 ------(LC 'OOOs)------
(a) Ports under Turkish Control:
Famagusta 1,735.2 256.5 1,478.7 Kyrenia 171.3 12.0 159.3 Karavostassi 8.8 0.9 7.9 1,915.3 269.4 1,645.9
(b) Privately Operated Mineral Ports
Vassiliko-Zyyi 12.0 4.0 8.0
(c) Existing Old Ports
Latchi 1.5 0.8 0.7 Larnaca 2.8 2.6 0.2 Limassol lighteragebasin 453.8 63.1 390.7 Paphos 62.2 11.9 50.3 520.3 78.4 441.9
(d) New Ports At Cost
Limassol 8,253.6 423.9 7,829.7 Larnaca 3,137.3 135.7 3,001.6 11,390.9 559.6 10,831.3
(e) Total 13,838.5 911.4 12,927.1
5.04 Land at the existing old ports and those now under Turkish control was revalued at LC 4,506,933 on July 1, 1971. Since this land was designated port areas, it was argued that it is unlikely to have a commercialvalue other than its use for port operation and it was transferredto CPA at a nominal value of LC 10.
5.05 Financial arrangementsfor repaying the Government for these assets are as follows:
(i) No repayment of capital or interest charge at this stage for assets at the ports under Turkish control (writtendown value at August 1, 1976, LC 1,645,870);
(ii) For those assets listed as for future use (consistingof part of the breakwatersand land at Limassol and Larnaca with a written down value at August 1, 1976 of LC 3,390,150). Capital will be repaid over 30 years with a five-yearperiod of grace, and interest of 2% per annum; - 34 -
(iCiu For all other assets (writtendown value at August 1, 1976 LC 8,129,003)capital will be repaid over 30 years with a five-yearperiod of grace and interest of 6% per annum.
The tirst repaymentof capital will take place on August 1, 1981 and will amount to LC 586,269. The Bank loan of US$11.5 million for the first port ptoJuct is being repaid by the Governmentto whom the loan was made and which in turn will recover from CPA under the arrangementsdescribed above.
B. Forecast of FinancialPerformance 1977-1986
5.06 The estimatedRevenue and ExpenditureAccounts are summarized below:
OperatingRevenue
1977 1978 1979 1980 1981 1982 ------(LC '000s)------
Operating Revenue Ship Charges 832 815 842 869 1153 1185 Cargo and Passengers 1623 1660 1698 1737 2371 2426 Storage 430 451 496 521 684 718 Rents 58 156 176 196 216 226 2943 3082 3212 3323 4424 4555 Investment Income 46 46 2 2 2 2 Total Revenues 2989 3128 3214 3325 4426 4557
Operating Costs (including depreciation) 736 1273 1359 1435 1808 1876 Operating Profit 2253 1855 1855 1890 2618 2681 aterest on Loans 603 615 695 1049 1512 1443 Net Profit 1650 1240 1160 841 1106 1238 Operating Ratio % 25 41 42 43 41 41 Tnterest Coverage x. 3.7 3.0 2.7 1.8 1.7 1.8 ?ebt Servicex. - - - 1.4 1.1 0.9 :i-non erage Net ixed Assets n Operation at Limassol and Larnaca % 19.2 15.6 16.0 16.8 13.8 10.1 - 35 -
5.07 The value of assets at Limassol and Larnaca is based on cost and would require to be increased by at least one-half to reflect current replace- ment cost levels which would reduce the above rates of return to about 10% in 1978 falling to around 8% in 1982.
5.08 The assumptionsused in the financial analysis are as follows:
(a) Tariffs: Revenues from ships, cargo and storage are based on current tariff levels until 1980. In 1981 all charges except rents have been increase by 25%.
(b) Expenditure: 1977 has been taken as the base year and projected in line with traffic forecasts:
(i) Wages and salaries which account for about 50% of operation costs are assumed to increase by 10% per annum because of inflation and include additional staff to be recruited;
(ii) Maintenance and repair of port equipment (3% of capital cost) costs have been increased by 5% per annum; and
(iii) Depreciation is 1% for breakwaters,2% for quays, 3-1/3% for roads, 2-1/2% for sheds, 10% for mobile cranes, 7.5% for electric cranes, and 10% for tugs and takes account of the investment program.
(c) Other:
(i) The balance of foreign exchange needed in addition to the proposed Bank loan of US$8.5 million is assumed to be available from commercial banks for a seven- year period with interest at an average rate of 8%.
5.09 Cash flow estimates indicate that CPA will be able to contribute about LC 5.0 million towards the 1978-1982investment program of LC 18.4 leaving a cash shortfall of LC 13.4 million. The proposed Bank loan of LC 3.4 million will leave a balance amount of LC 10.0 million to be found from other sources. A summary of the 1978-1982cash flow is given below. - 36 -
Local Foreign Total ------(LC '000s)…------…-
Source of Funds
Internal 9,457 - 9,457 Proposed Bank Loan - 3,400 3,400 Government Loan 3,115 6,885 10,000 12,572 10,285 22,857
Requirements
Bank project 4,830 6,950 11,780 Larnaca Quay Expansion Project 1,360 2,050 3,410 Land Acquisition 2,120 - 2,120 Other Capital Expenditures 90 1,000 1,090 Loan Repayments IBRD - 285 285 Existing Government Loans 1,172 - 1,172 New Government Loans 3,000 - 3,000
12,572 10,285 22,857
Excludes Paphos Port Developmentnot expected until after 1982.
5.10 The financing plan shows the financial requirementsof the total investmentprogram 1978 to 1982 and the contributionsmade by various sources. During negotiations, the Governmentgave an assurance that funds from a de- velopment loan will be provided to the extent necessary to meet the balance of foreign exchange requirements,additional to those covered by the Bank loan and local expenditures. The prior conclusionof the agreement securing these funds will be a condition of effectivenessof the proposed loan. The Governmentwill guarantee cost overruns.
C. Financial Covenants
5.11 CPA is obviously able to maintain satisfactoryoperating ratio (para 5.06), generate a realistic return on assets and cover its loan interest com- mitments adequately (para 5.06) with the reservationsthat the asset valuation does not reflect replacement cost and that there is probably some cross sub- sidizationby wharfage, of services to ships.
5.12 During negotiationsCPA agreed to:
(i) revalue its operationalassets on a replacement cost basis;
(ii) review,its tariffs and operating costs, develop a cost related tariff structure reflecting the investmentsand bring the new tariff into operation on or before December 31, 1981; - 37 -
(iii) generate revenue sufficient to (a) produce an annual return on the net fixed assets in operation of not less than 7% before tax up to 1979, 8% in 1979 to 1981 and to be maintained at an appropriate level thereafter, and (b) enable it out of internally-generated funds to pay interest on and amortize loans and debts, pay current taxation, and provide adequate reserves, maintain adequate working capital and finance out of its own funds a reasonable proportion of the cost of new investments.
5.13 These covenants are in continuation and extension of those contained in Sections 5.08 and 5.09(c) of the Loan Agreement (904-CY) for the first port project which were effectively incorporated in Sections 20 and 25 of the CPA Law of 1973.
5.14 CPA has managed its finances well so far. However, to ensure that a sound financial position is maintained, in view of the borrowing required to finance the investment program, CPA acceded to a debt limitation covenant; namely, not to incur any further debt, without the agreement of the Bank, unless its net income for the fiscal year next preceding the date of such incurrence, or for a later period of twelve consecutive months ending prior to such incurrence, whichever amount is the greater, shall not be less than 1.5 times the maximum debt service requirements for any succeeding fiscal year.
5.15 CPA agreed not to change materially the investment program shown in para 3.03. However, they may expend up to US$2.0 million per year in addition to project expenditures until the completion of the project.
VI. AGREEMENTS REACHED AND RECOMMENDATIONS
6.01 The Government has agreed to guarantee cost overruns (paras 3.28 and 5.10).
As recorded in the draft Guarantee Agreement (Section 2.02).
6.02 The Government and CPA have agreed not to undertake any major investment in port facilities which shall not be justified by all appropriate financial and economic criteria, but such restriction shall not apply to any investment (i) which is included in the investment program agreed between CPA and the Bank or (ii) which would result in expenditure by CPA not exceeding US$2.0 million in any fiscal year or (iii) to the proposed port developments at Paphos (paras 1.13 and 5.15).
As recorded in the draft Loan Agreement (Section 5.05) and in the Guarantor's undertaking in Supplemental Letter No. 4.
6.03 CPA has undertaken the following financial covenants: - 38 -
(i) to developa cost-relatedcharges structurefor imple- mentation by December 31, 1981 (paras 2.26 and 5.12);
(ii) to maintain its revenues at a level which will ensure an annual return on average net fixed assets in operation,as revalued from time to time, of not less than 7% in 1978, 8% for 1979 through 1981, and to be maintained at an appropriate level thereafter (paras 2.17 and 5.12);
(iii) not to incur any debt, other than money borrowed for finan- cing the project, unless its net revenue for the fiscal year next preceding such incurrenceor for a later period of twelve consecutivemonths ending prior to such incurrence,whichever amount is the greater, shall not be less than 1.5 times the maximum debt service requirementfor any succeeding fiscal year on all its debt, including the debt to be incurred (para 5.14).
As recorded in the draft Loan Agreement (Sections5.06, 5.07 and 5.08).
6.04 A conditionof effectivenessof the proposed loan is that (i) CPA shall have been granted by or through the Guarantor loans sufficient to meet the financingof foreign exchange costs not covered by the Bank Loan and (ii) a copy of the Agreement providing therefor and evidence satisfactory to the Bank that all conditionsprecedent to the disbursementof such loans shall have been fulfilled (paras 3.28 and 5.10).
As recorded in the draft Loan Agreement (Section 7.01).
6.05 Subject to the foregoing condition of effectiveness,the project is suitable for a Bank loan of U',$8.5million for 15 years includinga three- year grace period. - 39 -
ANNEX Page 1
STAFF APPRAISAL REPORT
SECONDPORTS PROJECT
CYPRUS
Documents Available in Project Files
I. Consultants'Studies
1. Louis Berger International,Inc. Feasibility Study for the Expansion of Limassol and Larnaca Ports (3 vols)
2. Louis Berger International,Inc. Port Development Study for Paphos (2 vols)
3. Dr. J. Jansson, UNIDO Feasibilityof Establishing Shipyard Consultant a Ship-repairingand Ship- building Facility in Cyprus (1 vol)
4. UNCTAD Congestion Task Force Report on Congestion in Cyprus (1 vol)
1I. Documents from the Cyprus Ports Authority
1. Shipping Statistics- 1975
2. Analysis of Foreign Trade - 1976
3. SummarizedAnalyses of Foreign Trade - January to June 1976 and 1977
4. Tourism, Migration and Travel Statistics- 1975
5. Tourism, Migration and Travel Statistics
(a) Monthly Bulletin - December 1976 (b) Monthly Bulletin - May 1977
6. Quarterly StatisticalDigest - December 1976 (SelectedExcerpts)
1 to 6 published by the Statisticaland Research Department of the Ministry of Finance.
7. Address by the Minister of Finance on the Results of the First Emergency Economic Action Plan and Targets and Objectives of the Second Emergency Plan and the Budgets for 1977 - 40 -
ANNEX Page 2
8. The Cyprus Ports OrganizationLaw of 1973
9. The Cyprus Ports Organization (Operationof Port Precincts) Regulations 1976
10. The Cyprus Ports Organization (EmployeeDuty Conditions) Regulations 1976
11. The Cyprus Ports Organization (Duties Payable) Regulations 1976 as amended - July 20 and December 31, 1976
12. Preliminary Proposal for Consultancy Services Coode and Partners, Consulting Engineers - March 1977
13. Second Emergency Economic Action Plan - 1977/78 Summary Tables 1 to 7
III. EnRineeringData
1. Limassol. As constructed drawing.
2. Larnaca. As constructed drawing.
3. Coode and Partners PreliminaryDesign Report.
4. Larnaca. Existing soil data and location of proposed additional borings.
5. Limassol. Location of proposed additional borings.
6. Project implementationschedule (Bar Chart).
7. Project cost estimates. Per project item including physical and price contingencies.
8. Calculation of: (i) Price escalationand (ii) annual expenditures.
9. Distributionof cost estimates per source of finance.
10. Draft terms of reference for PWD technical support to CPA.
11. Draft terms of reference for managementand operations' consultants.
12. Outline of Quarterly Progress Report.
13. CPA's 1977-1986Original Port Development Plan.
14. Calculationof foreign exchange price component. - 41 - ANNEX Page 3
IV. Operationaland Financial Data
A. Operational Ships
1. Berth Occupancy - Limassol 1976 and 1977 Larnaca 1976 and 1977
2. Berthing Delays - Limassol 1976 and 1977 Larnaca - 1977
3. Ship Working Time - Limassol 1976
4. Passenger Ships - Limassol 1975
5. Number of ships and tonnage of cargo at Limassol and Larnaca 1976 and 1977
6. Number and length of ships 1976 Limassol
Cargo
7. Imports and Exports by Main Commodities- Limassol and Larnaca 1976 and 1977
8. Imports and Exports - All Cyprus Ports 1975, 1976 and 1977
9. Cargo loaded and unloaded - All Ports 1976 and at Limassol 1975, 1976 and 1977
10. Maximum/MinimumAverage Tonnage
11. Container Movements 1975 to 1977 at Limassol
12. Note on Delivery and Storage of Imports and Exports
13. OperationalData for Types of Ship and Cargo
14. Passenger Traffic at Limassol 1975 to 1977
B. Economic
1. Port ProductivityAssumptions
2. Traffic Projections 1977 - 1990
3. Summary of Port SimulationModel Results
4. Additional SensitivityAnalyses - 42 - ANNEX Page 4
C. Financial
1. 1977 Budget (i) Revenue and Expenditure (ii) Capital Expenditure
2. 1976 and 1977 - Revenue and Expenditure
3. 1975 Revenue
4. Note on Transfer of Assets and FinancialArrangements
5. Forecast Revenue and ExpenditureAccounts 1978 to 1982
6. Balance Sheets at December 31, 1976 and 1977
7. Assets and Depreciation Statement 1977 to 1986
8. GovernmentLoan Repayment and Interest Charges Statement 1981-1986
9. Source and Application of Funds Statement 1978 to 1982
D. Miscellaneous
1. Port Labor Statistics- 1969 and 1976
2. Labor Productivity- Limassol 1975
3. Compositionof Gangs
4. List of Board Members
5. OrganizationChart
6. Port Labor Statistics- Limassol Jan. to May 1977 Larnaca 1976 and Jan. 10, 1977 IBRD 13170R2
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