In brief
- Goobjoog News reported on 18 February 2015 that a Finance Governance Committee review found none of 11 management contracts for Somali ports, airports and fishing rights were competitively tendered.
- The committee called for renegotiation of contracts with Albayrak Group at Mogadishu seaport and Favori LLC at Aden Adde International Airport.
- As of that date, there was no evidence that the renegotiations had been completed or that the contracts had been amended.
On 18 February 2015, Goobjoog News reported that a Somali government review had recommended renegotiating management contracts with Turkish firms running Mogadishu's seaport and international airport.
The report, based on a Finance Governance Committee (FGC) document dated January 2015 and obtained by Reuters, said the government had awarded foreign firms management contracts covering port and airport operations and fishing rights. None of the 11 contracts were tendered competitively or responded to pre-defined terms of reference or scope of services, according to the FGC report as reported by Goobjoog News.
The two Turkish operators named were Albayrak Group, which ran the Mogadishu seaport as of February 2015, and Favori LLC, which had run Aden Adde International Airport since September 2013. The FGC had completed a review of nine of the 11 contracts.
For the port deal, the committee called for "an amicable renegotiation of the contract's more troubling clauses" related to revenue division between the government and Albayrak. The report said the government had already raised the issue of amendments.
For the airport, the FGC called for amendments to the contract signed with Favori LLC on June 30, 2013, saying it lacked precision and was vague about Favori's fee structure. A letter dated Oct. 20, 2014 from former Finance Minister Hussein Halane, seen by Reuters, said the government and Favori had agreed to renegotiate.
As of the February 2015 report, neither the FGC report nor the Goobjoog News article gave any indication that the renegotiations had been completed or that the contracts had been amended. Favori and Albayrak could not be reached for comment at that time, Goobjoog News reported.
The report did not state the total number of firms scrutinized, identify the two contracts not reviewed, or provide any contract values, durations or revenue splits. It also left unclear whether the FGC report had been publicly released or remained confidential.
Frequently asked questions
Who was monitoring Turkish operations at Mogadishu port and airport in 2015?
The Finance Governance Committee (FGC) was reviewing management contracts, having completed a review of nine of 11 contracts as of January 2015, according to a report obtained by Reuters.
What were the concerns about the port and airport contracts?
None of the 11 contracts were competitively tendered or responded to pre-defined terms of reference. The port contract had troubling clauses on revenue division, and the airport contract lacked precision on Favori's fee structure.
What was the contractual basis for renegotiation?
The FGC called for amicable renegotiation of the Albayrak port contract and amendments to the Favori airport contract signed on June 30, 2013. A letter dated Oct. 20, 2014 from former Finance Minister Hussein Halane said the government and Favori had agreed to renegotiate.