# Somali PM Rejects Berbera Port Deal on 2018-03-03

> Goobjoog News reported on 2018-03-03 that Somali PM Hassan Khaire rejected the Berbera Port deal, calling it unauthorised and detrimental to sovereignty.

- By: Editorial Team, Somali Construction Review (https://somaliconstructionreview.com/about)
- Published: 30 September 2026
- Format: News story (reported from one named public source)
- Publication: Somali Construction Review (https://somaliconstructionreview.com)
- Subject: Business and Costs
- Tags: construction-risk, procurement, project-management
- Web version: https://somaliconstructionreview.com/blog/somali-pm-rejects-berbera-port-deal

## Key points

- Somali PM Hassan Khaire said the Federal Government does not recognise the Berbera Port deal, according to Goobjoog News on 2018-03-03.
- The PM said only the Federal Government and Parliament can authorise such agreements, and the Ministry of Ports declared the deal null and void.
- The report does not establish what has happened since that date regarding implementation, legal status, or actual construction.

On 3 March 2018, Goobjoog News reported that Somali Prime Minister Hassan Khaire said the Federal Government of Somalia does not recognise the Berbera Port deal.

The report, published that day, quoted Khaire as saying the Federal Government had no knowledge of the deal, which was unveiled in Dubai on the preceding Thursday. Khaire said only the Federal Government and Parliament can authorise such agreements, and that parties involved did not have the authority of the Federal Government.

The PM's statement reiterated an earlier position by the Ministry of Ports and Marine Transport, which the day before had declared the agreement null and void. The Ministry said the agreement was "both defective and detrimental to the sovereignty of the Federal Republic of Somalia and the unity of the country," according to Goobjoog News.

The deal, as reported, involved DP World holding a 51% stake, Somaliland 30%, and Ethiopia 19%. DP World said Ethiopia would also invest in infrastructure to develop the Berbera Corridor as a trade gateway for the inland country. The three parties had said they would proceed with reconstruction and management of the port.

Somaliland's parliament endorsed the 30-year concession in 2016, initially with a 65%-35% shareholding between DP World and Somaliland. A DP World subsidiary, P&O Ports, also secured a 30-year concession to manage Bosaso port in Puntland, the report noted.

Goobjoog News reported the deal was billed at 339 million, but the dollar components stated in the same report total $336 million ($136 million for phase one and $200 million for phase two), and the currency for the 339 million figure was not specified.

The report does not establish what has happened since 2018-03-03 regarding the deal's implementation, legal status, or any actual construction progress. It also does not state whether the Federal Government's rejection had any legal effect on the agreement.

## Questions

### What are the legal grounds for rejection cited by Somali PM?

According to Goobjoog News, PM Hassan Khaire said only the Federal Government and Parliament can authorise such agreements, and that the parties involved did not have the authority of the Federal Government. The Ministry of Ports said the agreement was defective and detrimental to Somalia's sovereignty and unity.

### What was Somaliland's response to the Federal Government's rejection?

The article does not provide a direct response from Somaliland to the Federal Government's position. It only notes that the three parties had said they would proceed with reconstruction and management of the port.

### Will this affect DP World's operations?

The report states that DP World, Somaliland, and Ethiopia had said they would proceed with reconstruction and management of the port, but it does not establish any effect of the Federal Government's rejection on DP World's operations.

## Sources

- [We do not recognise the Berbera Port deal-Somali PM](https://en.goobjoog.com/we-do-not-recognise-the-berbera-port-deal-somali-pm/) — Goobjoog News, 2018-03-03