The government of Somalia has renegotiated the concession agreement for the Port of Mogadishu with the Turkish operator.
Mariam Aweis Jama, Somalia’s Minister of Ports and Marine Transport, signed a new 14-year Concession Agreement with AlBayrak Group from Turkey.
Under the new agreement, AlBayrak now has permission to rehabilitate and operate Mogadishu Port on behalf of the Federal Government of Somalia (FGS).
The renegotiation was part of the plans by the administration of President Mohamed Abdullahi Farmaajo to review all government-issued concession agreements with private firms.
AlBayrak has been operating the Port of Mogadishu since 2013.
In the new agreement, the Turkish operator is now expected to invest over $50 million to rehabilitate the port within the next five years.
Furthermore, it should invest in and implement a state-of-the-art system for operating the terminal to make it more efficient.