Somalia and Turkish firm sign revised 14 year port concession
The Minister of Ports and Marine Transport, Mariam Aweis Jama, signed a 14-year Concession Agreement with the Albayrak Group from Turkey for the Rehabilitation and Operation of the Port of Mogadishu on behalf of the Federal Government of Somalia. In part as a response to the Government’s policy to review all government concession agreements which has now been completed, the two Parties agreed on a more ambitious agreement after Albayrak had been operating the Port already since 2013. The new agreement covers:
In part as a response to the Government’s policy to review all government concession agreements which has now been completed, the two Parties agreed on a more ambitious agreement after Albayrak had been operating the Port already since 2013..
The new agreement covers:
- the continuation of the Port’s exclusive terminal operations and marine services by Albayrak under a revised revenue share arrangement;
- a five-year, US$ 50 million rehabilitation and investment program to safeguard the port assets and respond to increasing trade flows;
- the implementation of a state-of-the-art terminal operating system to increase efficiency and speed at the port and increase service quality for shipping lines and cargo owners;
- compliance with international agreements and conventions as well as international quality and safety standards to increase the attractiveness of the Port; and finally,
- a planning and approval process for the long-term development of Mogadishu Port beyond the initial five years.
We had tough discussions on some areas over more than two years but are now convinced to have found a new basis for moving forward that balances the interests of both parties well.”Minister of Finance Abdirahman Duale Beyle further explains: “The Port’s revenues and the customs income flowing to the national treasury are extremely important for the operations of the Government.
So we need to make sure that the Port serves its customers well.
With the new Concession Agreement we have been able to do this, safeguarding Government income today and expanding in future.”“Minister Abdirahman and I took part personally in the final negotiations until the early hours of the morning.
The Director of the Mogadishu Port Authority, Ahmed Mohamud, has done an excellent job leading the negotiating team and has ensured the integrity of the process at all times.
I want to thank him and also Sharmarke Mohamed Farah who has very effectively covered the process from the Office of the Prime Minister.Finally, I would like to commend our team of financial and transaction advisers from the Africa Enablers, Switzerland, technical advisers from Inveni Portum, Germany, and legal advisers from Clyde & Co, UK.
They have shown real persistence over the years and demonstrated an outstanding, competent and thorough job guiding us through this process,” concludes Minister Aweis..