In brief
- On 27 August 2018 Puntland's parliament voted down a motion to terminate a $336 million port upgrade contract with P&O Ports, according to Goobjoog News.
- The motion, backed by 20 legislators, was defeated by acclamation, the report said.
- Goobjoog News did not report what has happened to the contract or project since that vote.
On 27 August 2018, Puntland's parliament voted down a motion seeking to terminate a port upgrade contract awarded to UAE port operator P&O Ports, Goobjoog News reported.
The motion, backed by 20 legislators, was tabled at the state assembly and defeated by acclamation, according to the report. Goobjoog News said the contract is valued at $336 million.
The report said Puntland president Abdiweli Gaas signed the concession agreement with P&O Ports in Dubai in April 2017. P&O Ports is a subsidiary of the state-owned Ports, Customs and Free Zone Corporation (PCFC), which also owns DP World, Goobjoog News reported.
Under the deal, P&O Ports was to build a 450m quay and a 5 hectare backup area, including dredging to a depth of 12m with reclamation work using dredge spoil, Goobjoog News said. The deal also involves major investment in an IT and Terminal Operating System (TOS), mobile harbour cranes and container handling equipment.
Goobjoog News reported the deal was set to be executed in two phases. The first phase is billed at $136 million while the second phase will cost $200 million, according to the report. P&O Ports won the 30-year concession in 2017, shortly after DP World secured a similar deal at Somaliland's Berbera Port at a cost of $442 million, the report said.
The Berbera Port deal later became a subject of diplomatic fallout between Somalia and the United Arab Emirates, with the Federal Government accusing the Gulf nation of breaching its sovereignty, Goobjoog News reported.
Goobjoog News did not report what has happened with the contract or the port upgrade project since the 27 August 2018 vote.
Frequently asked questions
Why was the motion brought?
Goobjoog News reported that 20 legislators backed a motion seeking to terminate the P&O Ports contract.
How close was the vote?
The motion was voted down by acclamation, according to Goobjoog News, but the exact vote count was not reported.
What are the terms of the P&O deal?
Goobjoog News reported a 30-year concession valued at $336 million, executed in two phases, including a 450m quay, 5 hectare backup area, 12m dredging, and investment in IT, TOS, mobile harbour cranes and container handling equipment.