As council of ministers unanimously approve the DP World contract to manage the country’s main port
By: Latifa Yusuf Masai
Somaliland Sun – Members of the house of representatives are set for debate as pertains the contract awarded DP World to manage and develop the Somaliland port of Berbera.
This outcome follows the cabinet unanimous approval of the contract entered between the government of Somaliland and the United Arab Emirates in which DP World was mandated with the management of Berbera Port that spans 30 years.
At the weekly cabinet meeting held on the 28-07-016 at the presidency in Hargeisa a chaired by president Ahmed Mahmud Silanyo the council of minister’s gave nod to deal which shall see the Emirati owned DP World infuse over $400m.
The approval through a show of hands called by president Silanyo who was flanked by his deputy Abdirahman Sayli came after a detailed briefing on the subject by the presidency minister Mahmud And I Hashi.
According to a statement released by the presidential spokesperson who is an Ex-officio member of the cabinet, the brifieng by minister which clarified several issues that have been paramount in the minds of Somalilanders since pen was put to paper in Dubai mid May 2016, it was revealed and stated that
The bid for developmemt and management of Berbera Port had attracted 8 international companies and after due process, six were eliminated leaving DP World of UAE And French Bollore Africa Logistics in contention
For many reasons including the caveat i the contract that shall see the UAE government contribute towards developmemt of the Berbera corridor that links Ethiopia to the port of Berbera and Somaliland at large DP World was awarded.
Revealed that the port of Berbera is Public Property and remains so since DP World has only been mandated with management and operation on a 30 years lease.
The contract is based on mutual benefit thus both DP World and the government on behalf of the owner’s, citizens, shall each accrued profits.
The contract was necissated by the imperatives of developing the port, for the government could not do so owing to constraints related to securing either loans or direct grants internationally.
The strategic need for Somaliland to become a hub in the very important gulf of Aden and Red sea which it straddles
The Infusion of $442m within 30 years favoured DP World
That DP World strategic design of securing the millions of people economy in Ethiopia also favoured the firm.
That DP World shall immediately upon final signature and within 12 months to its contract start construction of a second port with a radius of 400m and that the existing port shall not be interfered in anyway until the New port is completed.
A third port to be constructed measuring 400m upon competition of 75% of contractual obligations of the two ports.
Current employees at the Berbera Port numbering 840 shall be absorbed in Toto by DP World while New recruitment targets 3000 by the end of the contract.
For the government of the United Arab Emirates to support both completion and maintenance of the Berbera Corridor as part of the DP World package.
Though benefits are myriad interventions in the energy and agricultural sectors are worthy of mention.
Finally the DP World contract also entails the establishment of an bureau in the country tasked with facilitating employment opportunities in the UAE for Somaliland citizens.
Similarly facilitate a centre where commercial activities between Somaliland and the UAE shall be coordinated
Upon completion of the minister Hashi briefing to his colleagues president Silanyo called a vote in which all ministers present voted for, none opposed and none abstained.