Somalia: DP World says Mogadishu can’t change Berbera Port deal

ByStaff Reporter , Garowe Online

DUBAI, UAE - The Chairman and CEO of the Dubai's state-owned DP World, Sultan Ahmad Bin Sulayem talked about the decision by Somali government rejecting the tripartite agreement over Berbera port, Garowe Online reports.

Last Friday, Somalia's Ministry of Ports and Marine Transport has described the investment deal signed between Somaliland, DP World and Ethiopia as "non-existent, null and void" and detrimental to the country's sovereignty.

Reacting to the rejection, Bin Sulayem told Dubai TV that Somali government has nothing to do with the new agreement, recognizing the self-proclaimed state of Somaliland is “an independent country for 28 years.

Continuing, DP World CEO said the agreement was passed by the all relevant institutions, including Somaliland parliament which approved in 2016, paving the way to manage the Port of Berbera through a 30-year concession.

"It doesn't concern us what the Somali Federal Government is saying all about the agreement, Somaliland is an independent, democratic and stable country for nearly 30 years, our project was endorsed by Somaliland Parliament, so the Somali government has no powers to reverse it and we will not stop it," said Bin Sulayem.

According to the agreement signed in Dubai, the United Arab Emirates [UAE] on 1st March 2018, DP World will hold a 51% stake in the project, Somaliland 30% and Ethiopia acquiring the remaining 19%.

DP World said in 2016 as much as $442m would be invested to develop Berbera port.

On the other hand, Bin Sulayem has spoken about the decision by the Djibouti government terminating the contract with  DP World to run the Doraleh Container Terminal following a dispute, terming the move as an "illegal seizure."

DP World which has operated the Terminal since 2006 after a winning the concession said in a statement last week that it filed a lawsuit submitted to an International arbitration court in the UK to protect its rights.


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