The lopsided Somaliland-DP World Contract will end the same way as that of Djibouti.

[Holac]

I found some information on DP World's contract with Somaliland on Berbera Port. I can't see how this contract survives once Somaliland gains confidence and starts to get on a better financial footing. It is going to be rejected by future governments. Same re-negotiations battles will start. 

 

1. DP World shall control 46% of the joint venture
2. Somaliland shall control 35% of the joint venture
3. Ethiopia shall own 19% of the joint venture. DP World originally had 65% controlling stake before it sold 19% to Ethiopia. 
4. DP World shall control five board seats out of the seven total. Not sure how many seats Ethiopia will now get after buying a stake from DP World. 
5. Somaliland shall have 2 seats on the board.
6. DP World shall pay $5 million a year plus 10% on port revenue to Somaliland for the duration of the contract.
7. DP World shall support Somaliland’s fisheries industry
8. DP World shall help build the road between Somaliland and Ethiopia
9. DP World shall build a four-star hotel in either Hargeisa, the capital of Somaliland, or Berbera;
10. DP World shall grant Somalilanders favorable migration terms to work in Dubai.
11. DP World shall implement a free-trade zone to support the development of trade through Berbera

 

 

[maakhiri1]

if DP world takes 90% of port revenue? for how long?

 

After development,  10% could be way more than SL collects currently from the port  but still this deal is very generous for DP.

 

Get the Chinese and see what they offer.

[Saalax]

9 minutes ago, maakhiri1 said:

if DP world takes 90% of port revenue? for how long?

 

After development,  10% could be way more than SL collects currently from the port  but still this deal is very generous for DP.

 

Get the Chinese and see what they offer.

 

 

The Chinese usually don't deal with wannabe breakaway regions but only central government.

[Old_Observer]

Actually this is quite good from a Somali stand point. 10% of revenue with zero investment from SL is ample. The side business service industry, banking, insurance, shipping..don't forget Ethiopia has a shipping company based in Djibouti that does about 7 billion turnover a year, has about 15 ships, Djibouti started its own last year and also bought shares in the Ethiopian. Somaliland would have its own in a heart beat and this agreement has no effect on it.

Not sure that 19% is enough to sway Ethiopia from its addiction to Gheulleh and his willingness to build more ports, example one biult for specifc use of Potash exports.

Unless there is regime change in Ethiopia, it is almost impossible to move Ethiopia out of Djibouti. The Eritreans tried bribe, even war could not achieve that. Too much invested in infrastructure Djibouti Ethiopia, too much family ties Afar and Somali of Djibouti with Ethiopia.

 

Basically the agreement is not bad at all. Its quite good.

 

Since DP world is basically Arab Money British business (more than 80 percent of DP world was british company until few years back). Somalilanders are not totally unconnected as Gheuelleh was to Dubai some 20 years ago.

[Old_Observer]

Oodweyne,

I am only comparing commerial side of it. Some people think that 30 years is a long time, forgetting 30 years have been spent already in doing nothing.

If some Somali principality or kingsom had played it the way singapore and now the Bedewin Arabs did, we would not be on a discussion forum now we would all be in some other forum playing in big leagues.

Its in that aspect I see it. And if the whole thing is done without bloodshed it will be there for centuries.

 

I do not see this from Greater Somalia kind of political glass.

 

The one thing that need to be avoided is Somali kilil involvement. Both you and Djibouti need to pay Illey a cut starting right now. Don't be selfish and think that you can sideline him. Ethiopia at one time had all these ports. Its with selfishness of a king from central, having nothing to do with sea from adam and eve days that brought this situation.

 

It will also work for other useful objective as well, we leave it at that.

 

 

 

[Suldaanka]

Holac,

 

Can you tell us what is the deal between Villa Somalia and the Turkish company that manages Mogadishu Port? 

 

Any idea what the ins and outs of that agreement look like?

 

 

[Holac]

2 minutes ago, Suldaanka said:

Holac, can you tell us what is the deal between Villa Somalia and the Turkish company that manages Mogadishu Port?  Any idea what the ins and outs of that agreement look like?

 

 

I am looking into the Bosaso deal with DP and the Mogadishu Port's deal. Hopefully, I will get all the facts. 

[Holac]

42 minutes ago, Oodweyne said:

And I really wouldn't wish go down that road for the sake of the "privacy issue" some of the surrounding reality of this deal will demand from those of us, Somalilanders, who knows what is going on with this deal. 

1

 

Oodweyne, we are talking about the future of Somaliland's next generation. A commercial contract between a foreign entity and the government of Somaliland shouldn't be a secret in a democratic country. The item I listed on #6 is bothersome, to say the least. 

[Dahireeto]

2 hours ago, Holac said:

I am looking into the Bosaso deal with DP and the Mogadishu Port's deal. Hopefully, I will get all the facts. 

 

 

People died there protesting against the contract. Abdiweli Calolkuus kept the whole thing a secret so good luck finding information. 

 

 

[Old_Observer]

5 minutes ago, Dahireeto said:

 

People died there protesting against the contract. Abdiweli Calolkuus kept the whole thing a secret so good luck finding information. 

 

 

I think the conflict in Puntland was with wrong information and fake news.

Puntland did not deal like an independent country

Puntland did not deal anything that affects any other region or SFG, its like a city giving contract to a company to collect its garbage not that small potatoes but nothing to intefere with sovereignity or integrity of Somalia.

 

Its unfair to ask somebody to wait for you forever when you cannot manage the Capital and wheeling and dealing from the Capital to your hearts content.

Since road work to Ethiopia is involved Illey is also aware of what it is and welcoming the deal.

 

 

[Tallaabo]

11 hours ago, Old_Observer said:

 

The one thing that need to be avoided is Somali kilil involvement. Both you and Djibouti need to pay Illey a cut starting right now. Don't be selfish and think that you can sideline him.

If by saying Abdi Ilay you mean the administration he represents, then by virtue of its proximity to Jigjiga, the port of Berbera would be most beneficial to the Somali kilil. Already a large number of "long foot"  entrepreneurs from Jigjiga and elsewhere do significant business in Somaliland. An expanded port in Berbera with an associated free trade zone will only increase their businesses and prosperity. 

[Old_Observer]

9 hours ago, Tallaabo said:

If by saying Abdi Ilay you mean the administration he represents, then by virtue of its proximity to Jigjiga, the port of Berbera would be most beneficial to the Somali kilil. Already a large number of "long foot"  entrepreneurs from Jigjiga and elsewhere do significant business in Somaliland. An expanded port in Berbera with an associated free trade zone will only increase their businesses and prosperity. 

Tallaabo,

You got it.

There is no better way to achieve peace than having common and interlinked interest in life. The Somali from kilil 5 will wish the best in Somaliland more when he has interest than any other reason.

 

The reason why the kilil is building airports roads on its own not waiting for federal government is to get early investment flow and is already paying off. As much as Somalilanders were active in Djibouti will be active in kilil 5 as well.

 

Even with some temporary and small problems both Somaliland and kilil 5 have worked well in terms of security. Both might not make pronouncements of love, but both are happy with the internal workings.