By Kemo Kanyi
Ousman Jobarteh, the Managing Director of The Gambia Ports Authority (GP) has shed light on the contractual agreement between GPA and Albayrak Group for the management of ships landing and Gambia’s 20% revenue benefits during the period of the contract.
Under the contractual agreement which will be effective from January 10, 2025, up to the next 30 years, the Albayrak Group will have 80% benefit of revenues generated, while the remaining 20% will go to the Gambia Ports Authority.
Mr. Jobarteh stated that the public tender that was issued to international port operators for expression of interest has a business model for Banjul, as well as a financial model.
“In the financial model, our equity was determined by the value of the assets against the investment this is expected to be put in by the investor. One of the cardinal points to note is that the investor bears all the financing risks while the fixed assets in the ports were not placed in the market as collateral to secure any project financing,” DG Jobarteh explained during an interview on Coffee Time with Peter Gomez last Tuesday, October 22, 2024.
According to him, GPA benefits from the percentage of gross revenue and profits that were to be accrued in the business model. He said GPA is making gains as per the agreement.
“These revenues will be put in an account that’s not for the exclusive use of the investor, so there are gains because this will make sure the 20% revenue we receive against the investment cost is acceptable. In Sanyang, like in Banjul, the investor will do all the financing. Our business discounts future cash flows, and a value is put on them,” he explained.
He added that Albayrak Group will operate in Banjul for six years and later move to Sanyang, where international ships will be landing as agreed.
MD Jobarteh informed that when the investor moves to Sanyang, the 23-hectare land constructed by Albayrak, the area will be taken over by GPA and transformed into an estate for property development.
