The document discusses a PPP project in Djibouti called the Doraleh Container Terminal project. It provides an overview of PPP models and their motivations. Specifically, it describes the Doraleh project which involved the development, construction, and operation of a container terminal through a 30-year concession agreement between the government of Djibouti and Dubai Port World. The project had a total cost of $396 million and was financed through 70% debt and 30% equity. It established Djibouti's first PPP and increased the country's port capacity.

1. 1
Models of PPP Project Finance
Case Study
Presentation for Canadian
Council on Africa
Montreal, March,19-20
African Development Bank
Private Sector Operations

2.  1. An Overview of PPP
 2. Motivation for PPP
 3. Doraleh project Case Study
 - Project description
 - Project shareholder structure
 - Contract structure



3.  The Canadian Council for Public-Private
Partnerships defines PPP as “A
cooperation venture between the public
and private sector, built on the expertise
of each partner, that best meets clearly
defined public needs through the
appropriate allocation of resources, risks,
and rewards.
3

4. 1. 1. To attract private capital investment (often to
either supplement public resources or release
them for other public needs);
2. 2. To increase efficiency and use available
resources more effectively;
3. 3. To reform sectors through a reallocation of
roles, incentives, and accountability; and,
4. 4. The allocation of risks between partners who
are better able to manage risk.

6. Development, construction and operations of Container
terminal in Republic of Djibouti in a 30 year concession under
build-operate- transfer PPP arrangement
Total project USD 396 million with debt to equity funding of
70% 30%- first PPP financing in Djibouti
Joint venture between the Djibouti government and Dubai
Port World

Djibouti port has a monopoly position for Ethiopian imports
and exports
The new terminal has an annual capacity of 1.9 million TEU
(twenty foot equivalent container units)
Bank provided USD 100 million, 10 year senior loan.

7.  No loan to government;
 Borrower is a single purpose business;
 Separate legal and financial entity with ring-fenced cash
flows;
 Sponsor guarantees don’t cover all the risks;
 High leverage and long repayment terms ;
 Contracts with major project parties are a key credit
support mechanism ; and,
 Security rarely covers the nominal value of the loan.

9. 100%
DP World
Government
of Djibouti
DP World
Djibouti
Port Autonome
International de
Djibouti (PAID)
Doraleh
Container
Terminal
100%
33.3% 66.7% Concession
Agreement
Management
Agreement
JV
Agreement

10. Direct
Agreement
Direct
Agreement
Procurement
Agreement
Management
Contract
Port Services
Agreement
Dredging
Contract Equipment
Contract
Fixed Price
Construction Contract
Direct
Agreement
Finance
Agreement
Doraleh Container
Terminal
PAID
DP World
Djibouti FZCO
Government
of Djibouti
Financiers
Civils
Crane
Supplier
Dredging