In brief
- On 3 March 2018, Somaliland Sun reported that Somaliland's information minister cautioned Somalia against interfering in the DP World Berbera port agreement.
- The minister described the 1 March 2018 deal as an addendum to a 2016 DP World concession and cited constitutional authority for such agreements.
- The report does not establish what has happened since: no construction progress, investment deployment, or political resolution.
On 3 March 2018, Somaliland Sun reported that Somaliland's information minister, Abdirahman Abdilahi Farah 'Guribarwaqo', cautioned the federal government of Somalia against interfering in the DP World Berbera port management agreement.
The warning followed a Somali federal government statement, issued by the ministry of ports and marine transport, which called the deal "NULL and VOID", according to Somaliland Sun. The statement said the agreement awarded 19% shares to Ethiopia, 51% to Dubai's DP World, and left 31% with Somaliland.
Somaliland's information minister said the Somali government should abandon its dream of reuniting with Somaliland through coercion. He argued that the 1 March 2018 agreement, signed in Dubai by Ethiopia, the UAE and Somaliland, is an addendum to a DP World agreement entered in August 2016. In 2016, DP World won a 30-year concession with an automatic 10-year extension for the management and development of a multi-purpose port at Berbera, according to Somaliland Sun.
DP World announced it would set up a joint venture with 65% control together with the government of Somaliland, according to the same report. This percentage contradicts the Somali statement's claim of 51% for DP World. The minister also said article 90 section 6 of the Somaliland constitution authorises such agreements, and cited a December 2014 Djibouti accord stipulating that neither country shall interfere in the internal affairs of the other.
DP World's plans included investment of up to $442 million, phased over time and dependent on port volumes, with a first phase of a 400 metre quay, 250,000 square metre yard extension, gantry cranes and reach stackers. Construction of the quay extension was expected to start 12 months after satisfaction of terms and conditions and take 24 months to complete. The project would include scope for a freezone.
What Somaliland Sun's report does not establish is what has happened since 3 March 2018. It provides no updates on project construction, investment deployment, or political resolution between Somaliland and the Somali federal government. The underlying Somali statement is not reproduced in full, and the $442 million figure remains an announced plan, conditional on port volumes.
Frequently asked questions
What specific actions could Somalia take?
The Somali federal government called the deal null and void, but the report does not detail any specific actions beyond that statement.
What is the history of this dispute?
Somaliland and Somalia have a history of disputed agreements, with the minister saying Somalia regularly recants on agreements reached in talks between the two sides.
What are the risks to DP World?
Political interference from the Somali federal government poses a risk, as it disputes the legality of the contract. The report does not assess legal or commercial risks further.