In what could be described as an embarrassment for the government of President Adama Barrow, the Banjul Port Private/Public Partnership (PPP) arrangement has begun showing signs of unraveling almost eight months on as the company that was reportedly having the money to run the port has since ran away from the deal.
In 2023, the Gambia government approved a PPP concession for the expansion of the Banjul Port and the development of a deep seaport in the Gambia’s southern coastline.
“The PPP concessionaires are Albayrak and Negmar Consortium of Turkey with The Gambia Port Authority (GPA) serving as both a Guarantor and Shareholder in the Special Purpose Vehicle (SPV). Maritime Transport Business Services (MTBS) of Netherlands is the Transaction Adviser which assisted the Government in the bidding process through the PPP Technical Evaluation Committee comprising representatives from OP, GPA, GPPP, GRA, MOJ, MTWI, MOFEA, MOTIRIE, GIEPA and the PPP Directorate at the Finance & Economic Affairs ministry,” stated a press release from the office of the Gambia government spokesperson Ebrima G. Sankareh, dated 20 August 2023.
“Albayrak and Negmar Consortium will be appointed as the Lead Arranger of the SPV Joint Venture (JV) with the responsibility for the construction of the facilities, while the other two Preferred Bidders, Red Sea Gateway Terminals of the Kingdom of Saudi Arabia and Yilport of Turkey, would hold equity in the SPV, to leverage on their respective competencies and investment opportunities.”
Sources said the PPP arrangement have started to collapse since at the outset as the company with the money had left after signing the contract.
“Negmar has the money and since their departure from the partnership, Al Port cannot do anything remarkable because they don’t have the money,” one source said.
Al Port approached the Zenith Bank to seek a bank loan of over 14 million euros. The issue has become a subject of debate between the Al Port and the Gambia Port Authority (GPA).
Since the port was ceded to it in February this year for 30 years, Al Port was able to bring in only seven cargo handling machines. It has been heavily reliant on the GPA equipment, despite its earlier promise to procure the necessary equipment.
“Al Port started breaching the contract at the outset, but I can’t blame the company because it does not have the required finances,” stated one commentator.
It’s not only about the equipment because as per the PPP agreement, the Banjul Port expansion and the deep seaport construction were to be done in synchrony and be concluded within 24 months.
