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15 million Dollars deal earns Dubai Ports World for Somaliland’s only seaport – Berbera Port
May 10, 2016 - Written by Cabays

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Somaliland Government signed a deal that transfers the Somaliland’s only seaport, Berbera Port to Dubai Ports World. The deal was partially signed on Monday at the head quarters of DP World.

Somaliland’s foreigner minster, Dr. Sa’ad Cali Shire and the head of DP World, Sultan Ahmed Binu Sulaiman signed the mutual agreement allowing the DWP to takeover Berbera port.

The exact deals of the agreement is not publicly shared by either parties and it is not clear how much DP World will invest and when the transfer will take place. Monday’s agreement is reported as preliminary agreement paving for a major deal that will seal the deal DP World wants to incorporate Berbera port with neighboring Djibouti port it runs.

Speaking to the media after he returned to Hargeisa today, Somaliland foreign minister was asked if the deal will end the complete control of Berbera Port Authority when its completed, Dr. Sa’ad Ali Shire rejected the idea of DP World completely taking over the port.

“The Berbera Port Authority will remain in charge of the normal operation of the port and the DWP will deal the port connections and container terminals, and other major operations” said Dr. Sa’ad Ali Shire reassuring the public that the port will not be taken over completely by DP World

The Berbera Port Authority director, Ali Horhor also spoke to the media and defended the deal they entered with DP World when he came back to Hargeisa this morning.

“The deal we’re entering is based on mutual interest and partnership, and it is not sole ownership of DP World but a joint venture” said Mr. Horhor trying to explain how the deal they signed in Dubai is not complete transfer of Somaliland’s only conventional seaport.

Sources closed to Cabays Media confirmed the deal signed with DWP will lead the complete takeover of Berbera Port as millions of Dollars will be invested by DP World and it would put Somaliland in a position it could not reverse the privatisation of its main port. And this will be the same agreement the neighbouring port of Djibouti was taken over by DP World.

Asked Dr. Sa’ad Ali Shire if any money were paid for allowing the DP World to invest Berbera port during media briefing at his office in Hargeisa today, he confirmed that his government is paid a whopping 15 million dollars to sign the deal.

“Yes, we’re paid 15 million dollars, five millions for buying tugboats and other port related equipments and 10 millions in cash which will go to the national revenue at ministry of finance” Said Dr. Shire, smiling after a reported caught with the question threading many Somalilanders minds.

Speaking about the kind of deal they reached with DP World, Dr. Shire said ” The agreement is not finalised yet and we’re looking at the kind of concessions since there are 30 to 50 years of concessions normally signed, but this is just 30 years deal (for now)”

Dr. Sa’ad Ali Shire also said “The agreement will be presented at the cabinet ministers and the parliament and it is not something we are dealing in a black market”

The five million dollars the minister said they will buy for tugboats and other equipments are not clear who will do the purchasing and whether the DP World will allow the government to do the buying things on their behalf since DP World has already deals with ports and if so how transparent will it the money be used.

There is huge suspicious about the whole deal and Somalilanders are feared that whatever money the DP World pays will end up in private bank accounts own by the very government ministers involve in this outrageous deal that could lead Somaliland to end up in a foreign controlled seaport and losing one of its tangible assets.

 

DP World & Somaliland signs deal

DP World & Somaliland signs deal

 

 

 

 

 

 

 

 

 

DP World is one of the World’s largest port terminal operators which owns port terminals around the world. It has a portfolio of more than 65 marine terminals across six continents, including new developments underway in India, Africa, Europe and the Middle East.

In 2006, DP World and the Djiboutian Government established a joint venture, with the signing of a 30 years concession to operate the Doraleh Container Terminal. But DP World is now facing a legal battle to keep hold of its concession to run Djibouti’s container terminal after the government accused it of using bribery to win the contract.

In a statement, the government of the one powerful man controlled country released in 2014 said the agreement unfairly favoured DP World. It said it had rescinded DP World’s concession at the Doraleh Container Terminal and had launched arbitration proceedings in London, UK. DP World rejected the allegations and said it would vigorously defend its position. It will continue to manage the port pending the outcome of the case, DP World said.

The concession secured DP World in Djibouti was mediated by Abdirahman Boreh, the Djibouti’s tycoon before he fall out with President Guelleh and went in exile.

According to the closed sources with Somaliland’s delegation led by President Silanyo in Dubai, the deal allowing the DP World to redevelop Berbera port and secured concessions was mediated by the Djiboutian exile tycoon, Abdirahman Boore who was also appeared in unintended photo shot at the hotel the President Silanyo’s delegation was staying.

Somaliland’s main opposition party, Waddani has rejected the ideal of privatising Berbera Port and the deal with DP World, and branded the deal as nation’s assets sell-out. In a press conference Waddani leaders held in Hargeisa, they urged the government to reverse the decision allowing DP World to be transferred Somaliland’s only main seaport.

If the agreement between Somaliland Government and the DP World completes without any hindrance it will be the biggest deal Somaliland has so far secured and it could put Somaliland on the World map, but also it could turned Somaliland into a debtor for all the investment the Gulf State owned firm makes.

UAE is not officially recognised Somaliland as an independent country but it still deals it as separate entity from Somalia.

Somaliland has withdrawn the ill-advised union it entered in July 1960 with Somalia and redeclared its independence in 1991. Somaliland will celebrate 25th anniversary on 18 May and the deal with DP World will add to the celebrations if it goes down well.

Dubai Ports World has yet to comment on the nature of the agreement it singed with Somaliland on Monday. Cabays Media has contacted DP World for a comment and still waiting for a response.

Cabays Media is closelt following this story and any updates will be posted here as the deal with DP World is already causing controversy in Somaliland.

Sig SL

 

 

 

 

 

Cabays Media Staff

London -UK

 

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