The contract remains unusual in its duration, point out specialists and investors in the port sector
Caribbean Port Services already had a dominant position on the public port of Port-au-Prince without having to pay the 80 million US dollars invested in the reconstruction of part of its infrastructure after the 2010 earthquake.
When its rivals denounce a virtual de facto monopoly on the public port, harmful to competition: CPS claims to be in compliance with the law.
But a contract controversial signed by the director of the National Port Authority (APN) with this private company, chaired by Philippe Coles and Édouard Baussan, cements their dominant position at the country’s main international public port potentially until 2059.
The contract, officially initialed in December 2023 under the government of Ariel Henry, remains unusual in the sector for its very long duration, according to sources contacted by AyiboPost.
A recent non-public written opinion for an authority raises several questions about the document, including the absence of a call for tenders or the absence of the visa from the Superior Court of Auditors and Administrative Litigation, which is mandatory for contracts involving the public domain.
« These elements reveal a management oriented to the exclusive benefit of a single operator – in this case CPS – to the detriment of a national port policy based on transparency, free competition and openness to alternative investments, » concludes the opinion obtained by AyiboPost.
Contacted by AyiboPost, Jocelin Villier, the general director of the APN, whose name appears at the end of the contract, declared that it was a document drawn up legally in 2023.
Legally, the APN’s board of directors must approve the signing of a lease agreement. This was the case for a previous agreement signed with the CPS in 2015, according to the document obtained by AyiboPost. However, according to Villier, the board of directors did not have to intervene in 2023 since it was a renewal.
Despite Villier’s position, a comparison with the previous document, which expires this year, seems to reveal new elements, such as automatic renewal every nine years and for three times, the consolidation of previous arrangements or the obligation for the State to pay part of the costs associated with dredging.
« It is up to the legal experts to decide whether the contract is illegal, » said Jocelin Villier in an exchange with AyiboPost, arguing that the contract was prepared by the APN’s legal counsel and the CPS’s lawyers.
According to Director General Villier, the signature of the Minister of Finance at the time or the approval of the Superior Court of Auditors and Administrative Disputes (CSCCA) were not necessary, since the APN is an autonomous institution.
Jocelin Villier holds a Master’s degree in Project Management. He served as APN’s Director of Security from 2011 until his installation as Director General at the end of July 2023.
Several experts contacted by AyiboPost dispute the possibility of the APN’s director general committing the Haitian government unilaterally for such a long period of time, without consulting its board of directors, for such an important infrastructure. They declined to comment publicly for security reasons.
The APN director general maintains that other contracts in the sector have been signed in a similar manner. AyiboPost does not have these contracts in its possession. It will make them public if it obtains them.
Operations at the CPS in 2023
Created in 2015, the CPS resulted from the merger of several former private port operators with the aim of streamlining port operations. Lafito and CPS remain the only ports regularly unloading containers in the metropolitan area.
Although the public port of Port-au-Prince remains the property of the Haitian state, through the APN, the CPS holds lease agreements granting it rights to the infrastructure.
This model gives CPS a central role in the country’s maritime logistics since the vast majority of internal consumption is imported.
In reality, up to 80% of delivered containers sometimes pass through the CPS (2017), in a context where Haiti remains the country with maritime costs the highest in the region.
The 2023 contract covers 460,944 square meters, or 35.7 square feet, leased at $1.50 per square meter per year. Technically, the state is to receive $691,416 per year for this land. Another 65,756 square meter plot is being leased at $4 per square meter per year, or $263,024 per year.
The CPS has been paying the state fifteen US dollars per twenty-foot container since July 2016, according to documents obtained by AyiboPost.
Haiti imports around 100,000 containers per year (a figure likely declining substantially due to insecurity), according to industry players.
Container invoices remain personalized, and several factors can influence the final cost when including fees to the state and shipping lines.
But for example, several invoices reviewed by AyiboPost mention amounts of several hundred US dollars per 20-foot container requested from importers by the CPS. These amounts can even be as high as $1,000 per container, depending on its type, according to entrepreneurs.
« We can’t talk about fair competition when the CPS uses state infrastructure for such a ridiculously low price, while its competitors have had to invest heavily to build their own, » denounces a source involved in the port issue in Haiti. Like the other contributors to this article, this source requested anonymity for security reasons.
« Simply put, the state has a property, the public port of Port-au-Prince. It gave it to a group arbitrarily, by mutual agreement, without respecting the laws, » criticizes another source within a competing company. (CPS disputes this description).
But at the Ministry of Economy and Finance, no rigid position seems to be emerging, according to a senior official contacted: some think that an open or restricted call for tenders should have been made, which would have taken time, or that the port should simply be privatized. The APN, as a legal entity, sign contract, look for an operator—this is what has been done, the source declares. It is an administrative contract; other steps are not necessary, according to the official contacted.
This opinion of the ministry is not unanimous.
Another specialist contacted by AyiboPost disputes the legality of the 2023 contract. « International best practices require a transparent and competitive process for these types of long-term contracts in order to protect the interests of the community, » he adds.
AyiboPost contacted Philippe Coles, President and CEO of the CPS. He has not commented publicly, but this article will be updated if he responds.
Download some of the PDF documents related to this case [here] and [here] below. AyiboPost is sharing them because they are relevant to the public debate.
Ammendement de l’accord de 2015
By : Widlore Mérancourt
The cover photo was taken in June 2023 at the Port of Port-au-Prince. It illustrates CPS’ operations.
► AyiboPost is dedicated to providing accurate information. If you notice any mistake or error, please inform us at the following address : hey@ayibopost.com
Keep in touch with AyiboPost via:
► Our channel Telegram : Click here
►Notre Channel WhatsApp : Click here
►Our Community WhatsApp : Click here
Comments