Garoowe (PP News Desk) — President of Puntland State of Somalia Said Abdullahi Deni yesterday briefed Puntland parliamentarians on the status of the concession agreement between Puntland and DP World.
“Talks between Puntland and DP World are proceeding smoothly. Soon dredging vessels will arrive at Bosaso seaport” said President Deni.
President Deni described the concession agreement as one “between Puntland State and P&O, a sister company of DP World.” DP World acquired P&O in 2019, a fact that underlines how clueless Puntland Government is about the nature of the agreement and the status of the company with which it had signed the agreement to expand Bosaso Port back in 2017.
Last year Puntland Government made financial management reforms after it resolved to grant the Finance Ministry the sole authority to oversee the account into which revenues from Bosaso Port is deposited.
“The description of P&O as a sister company of DP World does not only indicate contractual impediments but also the low priority the United Arab Emirates government-owned company gives to Puntland State” Adan Mohamed, a commercial lawyer in Nairobi told Puntland Post.
No discernible expansion work has taken place at Bosaso Port since 2017. In 2020 DP World delisted from Nasdaq Dubai, a decision that had changed the company’s status from a publicly traded company into a company owned by a government.
© Puntland Post, 2021