Somaliland Foreign Minister says we sold Berbera port for $15 million

[Saalax]

It is even less than that was reported earlier.

 

 

 

 

Xukumadda Somaliland Oo Soo Bandhigtay Qadarka Lacagta Ah Ee Kasoo Galay Saxeexa Wareejinta Dekeda Magaalada Berbera

 

Hargeysa(Ramaas)May.10,2016-Xukumadda Somaliland ayaa markii u horeysay shaaca ka qaaday qadarka lacaga ee kasoo galay heshiisyadii la kala saxeexday iyo waliba wareejinta dekeda magaalada berbera oo lagu wareejiyay shirkada shisheeye ee Dubai World .

 

 

Wasiirka wasaarada arimaha dibada Somaliland ayaa shacaa ka qaaday inay jirto qadar lacaga oo dhan 15 Milyan oo dollar o lag qaaday shirkada la wareegaysa maamulka dekeda magalada berbera, lacagtaas oo loo yaqaano xaqul qalinka.

 

Waxana wasiirka oo arimahaa ka hadlaya uu yidhi sida tan.

“Haa way jirtay lacag xaqul qalina oo laga qaaday waana 15 Milayn, waa shan milyan oo lagu soo iibin doono maraakiibta maraakiibta soo xidha ee tag poit-g la yidha iyo toban milyan oo kasha Ayaan kasoo qaadnay oo ah lacagta loo yaqaano xaqul qalinka”Sidas ayuu yidhi wasiir Sacad Cali Shire.

 

 

http://ramaasnews.com/xukumadda-somaliland-oo-soo-bandhigtay-qadarka-lacagta-ah-ee-kasoo-galay-saxeexa-wareejinta-dekeda-magaalada-berbera/

[Saalax]

15 MILLION DOLLARS DEAL EARNS DUBAI PORTS WORLD FOR SOMALILAND’S ONLY SEAPORT – BERBERA PORT

 

 

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.

[Saalax]

30 year lease

 

[Holac]

One would think that Somaliland leaders got more money than they admit.

[Saalax]

Nah they are cheap. Easy to impress by their Arab masters.

[Holac]

$57 per hour lease is quite cheap saxib. It is not practical in the real world for such important public asset.

[Saalax]

It will properly be overturned by the next elected Gov just

like contract with the French company Total was cancelled.

[maakhiri1]

Impossible, That is too Cheap, how much revenue did the port used to raise every year?

[Saalax]

Somaliland's share in the port will be $400 million for 30 years. That is peanuts.

[Saalax]

$442 million over 30 years.

 

 

Dubai: DP World, the port operator with terminals from Brazil to China, has signed an agreement with the government of Somaliland to co-invest $442 million (Dh1.62 billion) in the Port of Berbera.

 

The two parties have signed a term-sheet agreement to form a joint venture company that will “invest and manage” and transform the port into a “regional and logistic hub,” according to DP World statement sent to Gulf News on Wednesday.

 

It is understood the agreement was signed during a recent visit to DP World’s offices in Dubai by Somaliland officials.

 

Somaliland’s President Ahmad Mohammad Mohamoud was reportedly in the UAE last week. Somaliland is an autonomous and impoverished region in the Horn of Africa.

 

The agreement is non binding but sets the basic terms for the investment that includes investing $442 million in the port “over time.”

 

The investment is dependent on the port’s performance, the statement said, and will also include the setting up of a free zone.

 

The development of the Port of Berbera “will provide an additional gateway for Ethiopia that is needed for its growth and serve other land-locked countries along the east coast of Africa,” DP World said.

 

In March 2015, Dubai-owned P&O Ports said it had entered into “preliminary discussions” with the government of Somaliland to develop ports in the region.

 

P&O Ports is a sister company of DP World but does not share the same ownership structure.

 

DP World is owned by Dubai investment company Dubai World while P&O Ports is owned by state entity Ports, Customs and Free Zone Corporation (PCFC).

 

Sultan Ahmad Bin Sulayem is the chairman of DP World and PCFC.

 

Somaliland is a breakaway region of Somalia that has functioned as an independent state for twenty years without international recognition.

 

Source:

 

http://m.gulfnews.com/business/sectors/shipping/dp-world-signs-442m-joint-venture-with-somaliland-1.1825624

[Tillamook]

Not gonna happen anytime soon.

 

Berbera isn't Silanyo's marfash to be auctioned so cheaply.

[Saalax]

Silanyo wife Amina Hersi and the ministers already

had a big fight over the $10 million upfront that was

given to them in cash.

[galbeedi]

I do not know the details , but Dubai World Port is a world class port management company, few years ago they even sent a proposal to run the largest sea port in the eastern United State, New York Port Authority. For political reason their bid was rejected. Before DWP , the Djibouti port was small port with outdated services.

 

They built huge modern container port and through C/raxman Borre, they added another big oil terminal. Infact in 2011, when I visited Djibouti I toured with a businessman who who manages containers. One of the biggest advantage for Djibouti was, the elimination of loopholes and special treatment of Ethiopian cargo and other connected people. Everyone must pay a recognized tariff or port services charges for the transiting shipments.

 

The collected taxes and fees go directly to the government coffers. Ethiopia or any other power business must deal with the DWP. the looting of corrupt officials diminished . The only downside was they employ Asians and other foreigners for some of the jobs.

 

This so called " xaqul Qalim" is a hidden kick back that is used by Somaliland ministers in any contract signed by a foreign company, whether they are mineral explorers or any resource project.

 

DWP is much better than the French company of Bollore., which was trying to take over the port. Ethiopia must now pay the necessary tariffs and port services without arm reselling this weak Somali " Maamul" which can not resist the Ethiopian power. The best way to eliminate the Berbera port corruption is to directly transfer the taxes and tariffs from the port to the general revenue of the government. Now, the money goes directly to the palace and used as slash money.

 

Politics aside, it is a good deal. They will modernize the services , and If the free port zone is accomplished it will generate huge trade. What is missing the input of the local people , like the proposed free zone of Diredawa, , the development of the smaller Awdal ports to serve local people and exports. we have to see .