By Tabora Bojang
The managing director of the Gambia Ports Authority Ousman Jobarteh has yesterday told lawmakers that Turkish Company Albayrak which was awarded the contract to invest and manage the Gambia Ports will hold 80 percent shares over the 30-year life of the concession, while the government of the Gambia will hold 20 percent of the shares.
MD Jobarteh further told NAMs that it was “not an easy process to get the investor to agree” on the 20 percent shares for the government.
“They were saying that we had to put in our fixed assets so that they can use it as collateral to the debt financing but we refused that and insisted that our fixed assets cannot be allowed for such [collateral] because in the event that the debt is not fulfilled our assets will be taken and placed in the market,” Jobarteh added.
The ports expansion contract is the latest in a wave of public-private partnerships conceived by the government in its bid to modernise infrastructure and maximise private investment and economic growth.
According to the GPA boss, the deal will not place any financial contribution on the Gambia government, adding that the investor will not only modernise the Banjul container terminal but also be required to develop a new deep-sea-port and an inland logistics platform in Kaur and Basse.
“The investor bears all the financing risks. What we have been able to craftly negotiate and get the investor to agree is that the asset [Banjul Ports] is very strategic to the country and in as much as we are not making any financial contribution towards the investment, we reserve the right to hold some equity. It is not like the company [Albayrak] is coming to start bringing containers and ships to the ports, the business is already there. And these are parameters that we use to negotiate with the investor to get them to accept the government to hold 20 percent equity. I can tell you it was not an easy process,” MD Jobarteh stated.
Asked to furnish NAMs with information about the risks that may be associated with this concession agreement, MD Jobarteh said the only risk could be “lack of investment” by the contractor.
He said the government was conscious of some of these risk factors that is why there is a provision in the contract to ensure there is a bond on performance, on investment and on infrastructure development.
The chairman of the National Assembly committee on monitoring the implementation of government projects, Yaya Sanyang then went on to express some concern of members to MD Jobarteh and Works and Infrastructure Minister Ebrima Sillah who was also in attendance.
He said: “We are deeply concerned with this agreement and even though we understand the potential benefits of this partnership it is imperative that these agreements are negotiated transparently in the best interest of the Gambian people and with adequate safeguards to prevent potential abuses. We urge the government to conduct thorough review of the contract and ensure that it aligns with our national development priorities, addressing environmental concerns and providing fair compensation for Gambians who may be affected by this project.”
