By Omar Bah
The Gambia Ports Authority’s Managing Director, Ousman Jobarteh, has asserted that the Banjul Ports Expansion Project, the biggest ever transformative project embarked on at the GPA, followed a transparent bidding process, with strict adherence to both national and international standards.
Recently critics have expressed concern about the project, alleging its awarding and agreements with the Turkish company working on it, lack transparency.
Confronted with these concerns in an exclusive interview with The Standard, MD Jobarteh began by explaining that the contract was awarded to Albayrak of Turkey after a competitive tender, which included multiple bidders, ensuring fairness and compliance with the country’s procurement guidelines.
MD Jobarteh further stated that the bidding procedures were conducted openly and according to established protocols, aiming to enhance the operational efficiency and capacity of the Port of Banjul.
“The Ports Expansion Project was launched through an international bidding following a business case that was prepared by a reputed consultancy firm called Maritime Transport and Business Solution (NTBS) of the Netherlands. At the end of the bid submission period, nine international port operators and one local company expressed interest in participating in the concession process,” he said.
The MD said following the shortlisting of the companies that expressed interest, eight out of the ten received were selected and invited to submit technical and financial proposals for the next stage of the biding process.
“Now, the evaluation of the financial and technical submissions received resulted in the selection of the three most responsive bidders identified out of the eight. These are the Red Sea Gateway Terminal of Saudi Arabia, Yilport of Turkey, and Albayrak of Turkey, and these were the ones recommended for the award of the concession.
Following the consideration of these recommendations, it was submitted to cabinet for decision to award it to the most responsive bidder.”
Jobarteh said Cabinet reviewed the three criteria that were put in the business model and the request for proposal that was issued in the Banjul Model because there was a bidding evaluation criteria, according to the RFP, which dictates that there should be a review of the technical, financial, and strategic commercial fit of these proposals.
“Now, Cabinet, in its decision, decided to invoke the strategic commercial fit whereby one of the bidders, which is Albayrak, submitted an alternative deep seaport that is in line with the RFP that was issued. To this end, Albayrak was invited now to submit a commercial proposal for this new deep sea. What happened is that after the evaluation, the technical and issued financial submissions were evaluated, and these three bidders were selected for award, but in the criteria that was in the RFP, there was a third criteria, which we call the strategic commercial fit, whereby bidders were allowed to make alternative proposals to what was issued in the request for proposal document.”
The MD went on: “Now, Albayrak submitted a proposal on the strategic commercial fit that looks into all the problems we are experiencing in Banjul, so the cabinet decided to invoke that alternative. That is how Albayrak was invited to submit a commercial proposal for investment in Banjul for immediate improvement while the establishment of the deep seaport in Sanyang is being pursued.”
In that process, he added, because it was a tender, the same opportunity for equity participation was opened in terms of an SPV that would be established for the other two preferred bidders that were shortlisted.
“Now, Red Sea Gateway Terminal puts some conditions on the deep seaport while Yilport declines the offer, so Albayrak was required by the government to submit a detailed proposal of the financial commitment for the port of Banjul in the interim and what they intend to do for the Sanyang deep seaport, and this was supposed to be submitted by November 23, 2023, to guide the decision on the next steps,” he stated.
He said the GPA was also instructed by Cabinet to appoint a transaction advisory firm to guide in the assessment of the adequacy of the feasibility report and the commercial proposal that was supposed to be submitted by Albayrak so that it would guide the negotiations.
Jobarteh disclosed that Maritime Transport Business Solution (MTBS), which was the hired consultant to do the business model for the Port of Banjul, was naturally selected to be the transaction advisory.
“A contract was issued to them in December to accompany the port through this process,” he said.
“Now, MTBS did make an assessment of the submission from Albayrak and recommended that before we go into the concession agreement, we should have an engagement on what we call precontract negotiation. We call it heads of terms so that we can agree on the broad outlines of what Albayrak intends to do both in Banjul and Sanyang before we go into the concession agreement proper,” he said.
MD Jobarteh added that the heads of terms were held between Albayrak and all the relevant stakeholders in government, which is guided by the PPP technical committee.
“That culminated with the signing of the concession agreement on 11 July 2024. Under this concession, Albayrak is required to commit minimal investment in Banjul for a period of six years in terms of improving the terminal infrastructure, rehabilitation of the existing pavements and the jetties, relocation of the GPA Head Office, construction of a pregate truck marshalling area at Bund Road so that we have a vehicle calling system for the port, the acquisition of model handling equipment, and implementation of a digitalised port operating system.”
He said these are the components Albayrak will invest in during the six years in Banjul.
“There is also equity sharing with no financial commitment from the government, and it also allows for a percentage share of gross revenue to GPA while Albayrak is operating the Banjul port. They will also pay to the government a percentage of the gross revenue that they will earn in Banjul, while a percentage of the net income deemed to be profit will not be carried by Albayrak for their interest, but it will be put in a reserve account as an escrow for investment when the Sanyang investment becomes due.”
He said the Turkish company will also bear all the financing risk in the deep seaport in Sanyang on a 30-year concession, and the government will also benefit from the same arraignment in terms of the percentage of the gross revenue and also hold 20 percent equity.
He said Mia Browne, a UK-based legal firm, was contracted through grant support from the Africa Legal Support Facility to ensure due diligence is followed in the exploration of the public-private partners with Albayrak.
“The firm confirmed that there is enough legal provision within the Ports and GPA and the PPP Operational Policy and Guidelines that mandates the GPA to be able to enter into this concession agreement. So yes, there is a legal basis for entering into this concessional agreement, and it was transparency and went through international bidding standards,” he added.
Why the expansion?
He said the ports expansion was based on the fact that the situation at the Banjul port congestion at Banjul port, adding that the volume of cargo has outgrown the traffic. Jobarteh said there was also a need to invite private sector participation in the ownership and management of ports.
“The Banjul Port is the only port within West Africa that remains under public management and ownership, and it limits our capacity to leverage on the financial resources and the management expertise and trade networks that international investors would bring along in the Marine ecosystem. So this is the background in which people have to understand that we are late in the game. Even to try to catch up with the international port operations,” he said.
Benefits
Commenting on the benefits of the project, MD Jobarteh said: “The Banjul Ports Project is crucial for The Gambia’s economy, aimed at enhancing the port’s capacity and efficiency. With a budget of $20.56 million, it will extend the pier, expand the container terminal, and improve access roads, facilitating increased cargo handling and reducing sea freight costs.”
This expansion, he added, positions The Gambia as a competitive transit hub in West Africa, potentially boosting trade and creating jobs.
“Additionally, it supports local content development and empowers local businesses, contributing to broader economic growth and sustainability goals,” he stated.
Job security
The MD assured that all the current staff involved in the operations will be transferred to the new company.
“One of the non-negotiable clauses that we managed to have an agreement with the investors is that all jobs will be secure. In fact, new jobs will be created once the new infrastructure is up,” he said.
MD Jobarteh said the GPA will receive payments for all the moveable assets in the ports and as part of the contract, the Turkish company cannot take certain major decisions without the involvement of the GPA. “This is to ensure that the interest of the country is safeguarded,” he said. Jobarteh said while the ports of Sanyang, when completed, will attract deeper vessels on a cheaper freight rate, GPA will receive a dividend as a shareholder. “Basse and Kaur inland logistics platforms will also be developed as part of the project to enhance the Gambia’s competitiveness to reach third markets because one would realise that almost 60 percent of goods that come to the country go to third countries by way of transit or reexport trade. So having Basse and Kaur logistic platforms developed would help revitalise river transport,” he said. Jobarteh added that local companies will also be involved in the process.
