BergerWorld: 3rd Quarter 2007

The Millennium Challenge Corporation (MCC) was established on January 23, 2004, by President George W. Bush as an important new initiative to promote sustainable economic growth. In 2005, the Berger Group was awarded Indefinite Quantity Contracts by the MCC to assist in transport, water resources and agricultural development. Berger staff is currently assisting the MCC and participating nations in Benin, Cape Verde, Georgia, Honduras, Mali and Nicaragua.

Port of Praia

Port of Praia Because of limited economic opportunities and scarce natural resources, Cape Verde suffers from high levels of poverty and unemployment. Upon being selected to apply for a Millennium Challenge Account (MCA) compact, Cape Verde's government developed an ambitious program to upgrade port, bridge and road infrastructure; increase agricultural productivity; and encourage private-sector investment.

Cape Verde is composed of 10 inhabited islands over a 1,556-square-mile area. As a result, efficient transportation infrastructure is essential for the development of a unified national market, reducing production and transportation costs and fostering the movement of people and goods. The MCC is currently assisting Cape Verde rehabilitate and expand the Port of Praia. The Berger Group was commissioned by the MCC to carry out a project assessment and due diligence study for the completion of the $50 million project.

The Team began the assignment by reviewing the region's current shipping trends and costs; preparing 20-year traffic forecasts; and evaluating the port's existing design to identify the types of facilities required to meet current and anticipated demand. Berger also reviewed the port's current operations, including cargo handling methods and procedures, performance levels and navigational specifications, in order to recommend necessary operational improvements. The Team then identified alternative improvements and developed detailed cost profiles of development options, including wharfs, buildings, pipelines, ramps, dredging and roads. A number of project alternatives were developed to reflect different project costs and options for phasing and sequencing the project. Berger also analyzed likely environmental impacts, identifying potential adverse environmental, health and safety issues. Finally, potential project risks, such as institutional and regulatory issues, were identified and evaluated, and the Team recommended mitigation mechanisms to be implemented into the project's design.

After carrying out the initial project assessment, MCC selected the Berger Group to provide a number of additional services for the port. The Team first drafted the TORs and provided input for the development of the RFPs. Berger then provided independent reviews of pre-qualification submittals, cost proposals, work plans and budgets, and assisted MCC and the government with contract negotiations for the design and construction contractors. During the implementation of the work, Berger will provide ongoing project monitoring services, overseeing the progress of the work and ensuring the improvements are in compliance with plans, specifications and environmental regulations.

The Port of Praia rehabilitation and expansion project will take place in two phases. The first involves the construction of a cargo terminal, improved access routes and the enlargement of the container yard. The second phase involves the construction of a wave-breaker, which will protect the port from high waves, making it operational all year round. The improvements at the port expect to increase the volume of regional container capacity by 130 percent.