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Stevedoring services to be privatized at the international Port of Nuku’alofa

PRESS RELEASE
From: Ports Authority Tonga
Date: 11th February 2019

Government is currently implementing reforms to the Public Enterprise Sector in its endeavor to support the performance and operation of the Public Enterprises, in an effort to improve the service delivery to the people and to assist with the overall development of the nation. In this reform program, a strategic review of Port Authority’s operating efficiencies and services at the International Port of Nukuálofa was conducted by specialists from the Asian Development Bank (ADB) to identify measures in order to improve the service delivery to the people, and to support the working relationship with private sectors.

The report on the Tonga Ports Authority strategic review by ADB was submitted to the Ministry of Public Enterprises with recommendations on measures to be undertaken by Ports Authority Tonga in order to achieve the Government’s reform objective.

Ports Authority Tonga supported the recommendations set out in the ADB report to establish a Public Private Partnership (PPP) as the best option for this reform program. The report was presented to Cabinet and was approved on the 9th of November 2018 to implement the reform option through a PPP.  The PPP would be an opportunity for a Tongan owned company to take over all the management and operations of stevedoring, marshalling, storage as well as receiving and delivery of cargoes at the Nukuálofa International Port (Queen Salote Wharf).

This reform would be entered into through a Concession Agreement between Ports Authority Tonga and a Tongan Company to ensure that the working relationship is governed in accordance with the Ports Authority Act and the Law of the country.

Ports Authority Tonga together with ADB and the Ministry of Public Enterprises have started developing the processes to ensure that the due diligence for the PPP reform is fulfilled in alignment with the directions from Government who is also the shareholder to Ports Authority Tonga

The Board of Directors have approved to establish a working committee chaired by the Ministry of Public Enterprises CEO to assist the Board in the implementation of the reform processes for privatizing the stevedoring services by a single Tongan owned company.

Once the Concession Agreement and the processes for this reform is fulfilled, the detailed information to request for tender would be advertised and interested parties will be invited to submit their expression of interest to deliver the stevedoring services at the International Port of Nukuálofa (Queen Salote International Wharf).

Ends.

 

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