The World Bank assisted the Government of Somaliland (GoSl) to develop the economic potential of the Berbera Port through private sector participation in terminal activities at the port. Private sector participation in the commercial activities of the port was expected to help improve port operations, attract third destination cargo for the Horn of Africa, and help realize the port’s potential to serve as a regional trade hub.
The objective of the advisory services was to provide support to develop a transaction leading to the concession of terminal operations at the port. Nathan, in association with BergerABAM, assessed the situation and reviewed an existing feasibility study for the project relative to identified markets, structure of the sector, regulatory issues, port infrastructure and equipment, labor force and professional preparation, financial performance, development options for the port, and prior recommendations for private sector participation at the port.
Nathan then prepared a full business case for the port, including associated financial modeling and an examination of technical (operational and infrastructure) requirements that outlined the risks and benefits of private sector participation in container operations at the Berbera Port.
Nathan also conducted a technical review of draft concession documents and developed a report recommending to the Somaliland government benchmarks against which negotiations with prospective private sector port operators could be assessed in order to develop a viable concession agreement based on international best practices.