In brief
- On 3 April 2018, Horn Diplomat reported Somaliland's Foreign Minister Dr Sa’ad Ali Shire saying no one had authority to interfere in the DP World deal for Berbera port.
- The report outlined a $442 million planned investment, a 51/30/19 ownership split with Ethiopia's stake only announced, and phase one of works targeted to start in five months and finish in 2020.
On 3 April 2018, Horn Diplomat reported that Somaliland's Foreign Minister Dr Sa’ad Ali Shire said no one had the authority to interfere in a deal between Somaliland and DP World for the development of Berbera port.
The report quoted Shire saying the agreement is "an economic and commercial deal that will benefit everyone in the Horn of Africa region" and that "Somalia’s claims are baseless, and don’t change anything on the ground."
As reported by Horn Diplomat, under the deal DP World will invest $442 million (Dh1.62 billion) in the port, controlling a 51 per cent stake while the Somaliland government will control 30 per cent. A separate deal announced the previous month would give Ethiopia a 19 per cent stake, though at the time of the report that stake had not yet been acquired.
DP World Berbera Head of Operations Ali Esmail Mahmoud was quoted describing the work as organised in three phases. Phase zero involved developing the existing terminal, including changes to infrastructure, electricity and training facilities. Phase one was to begin in five months and was expected to be completed in 2020.
Equipment reported by Mahmoud included three mobile harbour cranes ordered, six reach stackers added with three more on the way, plus empty container handlers, mobile cranes, internal terminal vehicles and forklifts.
Frequently asked questions
What legal basis does Somaliland cite for the port agreement?
Somaliland's Foreign Minister Sa’ad Ali Shire said, as reported by Horn Diplomat on 3 April 2018, that no one had the authority to interfere in the deal and that Somalia's claims were baseless. He did not elaborate on a legal basis beyond describing the agreement as an economic and commercial deal.
How does this affect the project's timeline?
The report gave only targets: phase one was to begin five months after 3 April 2018 and was expected to be completed in 2020.