In brief
- Somaliland Sun reported on 25 April 2015 that the Somaliland government was moving to award the Berbera port development contract to DP World, with works by P&O Ports.
- The report said no official confirmation existed and raised concerns that P&O Ports was selected without public tender.
- The report does not establish whether a contract was signed or any works have occurred since.
On 25 April 2015, Somaliland Sun reported that the Somaliland government was moving to award the Berbera port development contract to DP World, with on-the-ground works to be carried out by its recently launched subsidiary P&O Ports. The report was based on unconfirmed media reports in circulation.
The report said the government was said to have, or be in the process of, dispatching Presidency Minister Hirsi Haji Ali and Public Works and Transport Minister Abdirizaq Khalif Ahmed to the UAE to sign the contract with DP CFC. It added that if concluded, the DP contract would be serviced by The Ports, Customs and Free Zone Corporation (PCFC), with on-the-ground works undertaken by P&O Ports.
Somaliland Sun noted that no official report existed as of the article date regarding the alleged contracting of the Emirati firm. The report cited President Ahmed Mahmud Silanyo's state of the nation address earlier in 2015, in which he said his administration was in consultations with four foreign firms interested in the contract: Bollore (France), DP World (UAE), Prime Africa (KSA) and Kuwaiti Logistics (Kuwait).
The report raised concerns about the awarding process, stating that P&O Ports appeared to have been selected over the other three firms without the contract being publicly tendered, which it described as the norm and legally correct fashion for such important infrastructure.
The report also highlighted a dispute between Somaliland and the Somalia Federal Government, which stated it is the only authority allowed to enter into contracts with foreign firms concerning the port and warned of legal action. Somaliland information minister Abdilahi Ukuse called the SFG claim "not only a futile transgression of Sovereignty but an absurdity as well".
Somaliland Sun, citing the UAE government, described P&O Ports as designed to support sustainable development in emerging economies through its specialisation in developing and operating marine and inland ports. The report also quoted PCFC chairman Sultan Ahmed bin Sulayem as saying at the launch of P&O Ports in Dubai the previous month that P&O Ports had signed MoUs for preliminary discussions with the governments of Madagascar, the Port of Berbera in Somaliland, and Albania.
The report does not establish whether any contract was actually signed with DP World or P&O Ports, nor does it provide details on value, scope, duration, or terms. It also does not confirm what, if anything, has happened since 25 April 2015 regarding the reported development.
Frequently asked questions
What was the nature of the contract between Somaliland and P&O Ports?
According to the Somaliland Sun report, the Somaliland government was moving to award the Berbera port development contract to DP World, with on-the-ground works by P&O Ports. However, no official report existed at the time and no contract details were provided.
What operational development was planned for Berbera Port?
The report did not provide specific details on the scope or timeline of the development. It mentioned enhancing operational capacities at the port, as stated by President Silanyo, but gave no further specifics.
Who were the key parties involved in the agreement?
According to Somaliland Sun, the Somaliland government, DP World, PCFC, P&O Ports, and two ministers named Hirsi Haji Ali and Abdirizaq Khalif Ahmed were involved. The Somalia Federal Government also claimed authority over the port.