PERFORMANCE EVALUATION DESIGN REPORT ( FINAL ) Evaluation Design and Implementation of Benin Port Project APRIL 4, 2016 PRESENTED TO: PRESENTED BY: Hamissou Samari NORC at the Millennium Challenge Corporation University of Chicago th 875 15 Street, NW Clifford Zinnes Washington, DC 20005 (202) 521-3600 Senior Fellow 4350 East-West Highway Suite 800 Bethesda, MD 20814 (301) 634-9527 NORC | Evaluation Design Report PEDR FOR BENIN (DRAFT) NORC | Evaluation Design Report Acronyms ANLC National Anti-Corruption Authority CEM Country Economic Memorandum CMA CGM Compagnie Maritime d'Affrètement Compagnie Générale Maritime DG Director General DOTS Direction of Trade Statistics ECOWAS Economic Community of West African States IFC International Finance Corporation GoB Government of Benin GUFE Guichet Unique de Formalisations des Entreprises IMF International Monetary Fund LSCI Liner Shipping Connectivity Index LOS Level of Service MCA Millennium Challenge Account MCC Millennium Challenge Corporation MTPT Ministry of Transport and Public Works M&E Monitoring and Evaluation PEDR Performance Evaluation Design Report PAC Port Authority of Cotonou PIDG Private Infrastructure Development Group PoAI Port of Amsterdam PPP Public-private partnership RTG Rubber-tired gantry SOE State-Owned Enterprise TEU Twenty-foot-equivalent unit UNCTAD United Nations Conference on Trade and Development USD U.S. Dollars WITS World Integrated Trade Solution PEDR FOR BENIN (FINAL) | i NORC | Evaluation Design Report PEDR FOR BENIN (FINAL) | ii NORC | Evaluation Design Report Table of Contents Executive Summary ................................................................................................................... viii 1. Introduction ...........................................................................................................................1 1.1 Country context ..............................................................................................................1 1.2 Report Objectives...........................................................................................................2 2. Overview of the Compact and Intervention ........................................................................2 2.1 Project Overview and Implementation Plan ..................................................................2 2.1.1 Program Participants .........................................................................................2 2.1.2 Geographic Coverage .........................................................................................3 2.2 Program Logic ...............................................................................................................3 3. Literature Review ..................................................................................................................8 3.1 Country context ..............................................................................................................8 3.1.1 Summary of the Existing Evidence ......................................................................8 3.1.1.1 Benin Port Sector ...............................................................................................8 3.1.1.2 MCC Compact .................................................................................................10 3.1.2 Gaps in the Literature .......................................................................................14 3.2 Competitiveness ...........................................................................................................14 3.2.1 Summary of the existing evidence .....................................................................14 3.2.2 Gaps in the Literature .......................................................................................18 3.3 Trade Volume ..............................................................................................................19 3.3.1 Summary of the existing evidence .....................................................................19 3.3.2 Gaps in the Literature .......................................................................................20 3.4 Operational Efficiency .................................................................................................21 3.4.1 Measures of Operational Efficiency in the literature .......................................21 3.4.2 Summary of the existing evidence at Cotonou ..................................................21 3.4.3 Gaps in the Literature .......................................................................................26 3.5 Costs and Tariffs ..........................................................................................................26 3.5.1 Summary of the existing evidence .....................................................................26 3.5.1.1 Costs at the Port...............................................................................................26 3.5.1.2 Container Handling Charges ...........................................................................27 3.5.1.3 Costs of Doing Business...................................................................................29 3.5.2 Gaps in the Literature .......................................................................................29 PEDR FOR BENIN (FINAL) | iii NORC | Evaluation Design Report 3.6 Integration of internal markets .....................................................................................29 3.6.1 Summary of the existing evidence .....................................................................29 3.6.2 Gaps in the Literature .......................................................................................30 3.7 Employment .................................................................................................................30 3.7.1 Summary of the existing evidence .....................................................................30 3.7.2 Gaps in the Literature .......................................................................................32 3.8 Corruption ....................................................................................................................32 3.8.1 Summary of the existing evidence .....................................................................32 3.8.2 Gaps in the Literature .......................................................................................34 3.9 Institutional Issues .......................................................................................................34 3.9.1 Summary of the existing evidence .....................................................................35 3.9.2 Gaps in the Literature .......................................................................................38 4. Evaluation Design ................................................................................................................39 4.1 Policy Relevance of the Evaluation .............................................................................39 4.1.1 Infrastructure Improvements .............................................................................39 4.1.2 Institutional and Organizational Improvements ...............................................39 4.1.3 Future MCC Procurements ...............................................................................40 4.2 Evaluation Overview ...................................................................................................41 4.2.1 Summary of Evaluation Questions and Outcomes ............................................41 4.2.2 Summary of Evaluation Approach ....................................................................43 4.2.2.1 Approach to Evaluating Operational Performance and Efficiency .................43 4.2.2.2 Approach to Evaluating Institutional Control Issues ......................................44 4.3 Port Operational Analysis ............................................................................................45 4.3.1 Evaluation Questions and Outcomes ................................................................45 4.3.2 Methodology ......................................................................................................45 4.3.2.1 Operational Efficiency .....................................................................................46 4.3.2.2 Level of Service ................................................................................................47 4.4 Shipping and Market Analysis .....................................................................................49 4.4.1 Evaluation Questions and Outcomes ................................................................49 4.4.2 Methodology ......................................................................................................49 4.5 Trade Analysis .............................................................................................................50 4.5.1 Evaluation Questions and Outcomes ................................................................50 4.5.2 Methodology ......................................................................................................50 4.6 Institutional Assessment ..............................................................................................52 4.6.1 Evaluation Questions and Outcomes ................................................................52 4.6.2 Methodology for Qualitative Analysis ..............................................................53