In brief
- On 13 January 2021 Somaliland Standard reported the unveiling of a 7MW solar project in Berbera funded by the Abu Dhabi Development Fund.
- The report attributed a 7.98 million dollar funding figure, a seven-month construction period, and a 50,000 beneficiary estimate to the ceremony and its officials.
- SCR has found no subsequent evidence on the project's commissioning, generation, tariffs, or ownership transfer.
On 13 January 2021, Somaliland Standard reported that the Berbera solar energy project was unveiled by Vice President H.E Abdirahman Abdillahi Ismail, accompanied by Minister of Energy and Minerals Hon. Jama Haji Mohamud Egal. The report, citing the unveiling ceremony, said the project's capacity is 7MW.
The article, headlined “Somaliland expresses gratitude to UAE’s grant fund for the affordable electricity project”, attributed a 7.98 million dollar funding figure to the Abu Dhabi Development Fund. It did not specify whether the amount was a grant, loan or total project cost, and did not state the currency beyond “Million Dollar”.
The Somaliland Standard report also quoted Abu Dhabi Development Fund Director General Mohamed Sayf Al Suwaydi as saying the project was completed within 7 months, from March to October 2020. The construction period coincided with the worldwide Coronavirus pandemic, according to the report.
The project is aimed to meet the electricity needs of the Berbera district community, which the report estimated at 50,000 people. The facility will be linked to the district electricity network, in line with growing demand, the report said.
A Memorandum of Understanding (MoU) was signed at the ceremony, witnessed by the Abu Dhabi Development Fund, which will transfer ownership of the facility to the Ministry of Energy and Minerals on behalf of the Republic of Somaliland. The report also stated that consulting firm Coretec was appointed to support the Ministry in establishing the operational framework for the facility.
The report contained two statements about management arrangements. It said the Government and Berbera Electricity Company will jointly manage through Public-Private Partnership (PPP). It also reported that in principle, it was agreed that the facility would be a Public-Private Partnership to operate and renovate the solar power plant, the first of its kind in the country. The Somaliland Standard article does not establish whether the agreement was concluded.
The Vice President thanked the UAE Government for implementing the project in Berbera, according to the report. In 2017, the report said, the Abu Dhabi Development Fund allocated 330 million Emirati Dirhams ($89.8 million) for the development of key infrastructure in Somaliland. Part of this money will be used for the Berbera-Hargeisa road project, which was laid in stone at 2019, the report said.
The Somaliland Standard report does not establish what has happened to the Berbera solar project since that date. It gives no commissioning date, no actual generation output, no tariff change and no confirmation that the plant is operating. It also does not state whether the ownership transfer, the Coretec appointment or the PPP have since been concluded.
Frequently asked questions
How much funding was provided for the Berbera solar project?
Somaliland Standard reported the project was funded 7.98 million dollars by the Abu Dhabi Development Fund. The report did not specify whether this was a grant, loan or total project cost.
How will the Berbera solar project reduce electricity costs?
According to the Somaliland Standard report, Abu Dhabi Development Fund Director General Mohamed Sayf Al Suwaydi said the project will replace expensive fuel with solar energy to provide electricity at an affordable price. Minister of Energy and Minerals Hon. Jama Haji Mohamud Egal said the center will reduce electricity cost and tariffs and dependence on fossil fuels.
Sources
Photo: European Space Agency, CC BY-SA 3.0 igo, via Wikimedia Commons
