In brief
- On 22 May 2018, Horn Diplomat reported that DP World’s head of port operations for Berbera said construction of the first phase would begin in September.
- The USD 442 million two-phase port project is reported as a tripartite agreement between Somaliland, UAE and Ethiopia.
- The report does not confirm that construction began in September 2018 or that bids have been awarded.
On 22 May 2018, Horn Diplomat reported that the Berbera Port expansion project would commence in September. The report attributes the start date to Ali Ismail Mohamed, head of port operations with DP World Group, who told Ethiopian journalists: “The construction of the first phase begins in September and bids will be awarded to potential developers.”
The report does not provide evidence that construction actually began in September 2018, nor that bids have been awarded to any developer. It also does not state the year of the September referenced, though the context implies 2018.
Reported project details
According to the report, the project is valued at USD 442 million, a figure attributed to DP World personnel. The port is to be developed in two phases, with an expected completion by 2020.
During the first phase, a 430 metre berth is expected to be constructed, which will accommodate two vessels at any given time. This was stated by Ali Ismail Mohamed and Allan Sanchez, project operations manager with DP World at the Berbera Port.
Tripartite arrangement and shares
Horn Diplomat reported that Somaliland has formed a tripartite port development agreement with the United Arab Emirates (UAE) and Ethiopia. According to the reported tripartite agreement, DP World holds a 51 percent share and Somaliland retains a 30 percent stake. The report does not identify the source for the remaining 19 percent stake.
Food aid volumes
Port officials, as quoted by Horn Diplomat, expect the food aid volume handled through Berbera to climb to 40,000 tons in 2018. The basis for this expectation and the timeframe are not specified in the report.
Frequently asked questions
What specific works are included in the first phase of the Berbera Port expansion?
According to DP World officials quoted by Horn Diplomat, the first phase includes construction of a 430 metre berth that can accommodate two vessels at a time.
Who is involved in the Berbera Port expansion project?
The project is reported as a tripartite agreement between Somaliland, the UAE and Ethiopia, with DP World holding a 51 percent share and Somaliland a 30 percent stake, according to Horn Diplomat's report of the agreement.