Garowe (PP News Desk) — President Said Abdullahi Deni today opened the 47th session of Puntland Parliament and briefed MPs about his recent visit to Mogadishu, the agreement on the electoral model and talks with DP World executives in the United Arab Emirates.
“We are working hard to find an amicable solution to the Bosaso Port agreement complications with DP World without putting Puntland relations with UAE at risk” said President Deni.
President Deni said his administration was honouring an agreement signed by his predecessor and endorsed by Puntland Parliament. “We are looking into criticisms against DP World regarding management of Bosaso Port” he added.
In 2017 Puntland State granted DP World a thirty-year concession to manage and develop “a multi-purpose port project at Bosasso in the Puntland State of Somalia.” When the agreement was signed DP World was a publicly traded company on Nasdaq Dubai. In February 2020 DP World was delisted and returned to private ownership.
A contract law expert told Puntland Post that the change in ownership structure of the company will have an impact of DP World’s contractual obligations. “Puntland State was influenced partly by the company’s previous status as a publicly traded company. When a company delists investors raise questions about its management and viability” says London-based law of contracts lecturer.
“ The move to take DP World private comes as the emirate struggles to steer itself out of a five-year economic slowdown triggered by the 2014 collapse in oil prices and growing geopolitical turmoil” reported Financial Times.
© Puntland Post, 2020