Two foreign companies are in competition for the administration of Mogadishu’s Airport, Adan Abdulle International, which is recovering from years of setback.
SKA Air and Logistics, a Dubai-based aviation firm, was contracted by the Transitional Federal Government in June 28th 2010, to manage the airport for ten years, but President Mohamud’s Government decided to halt the contract and signed a new twenty years contract with Favori LLC, a Turkish firm.
“Cabinet ministers approved the cancellation of SKA’s contract and signing a new contract with Favori, Turkish firm.” Somalia’s Minister of Information, Post, Telecommunication and Transportation Abdullahi Ilmoge Hersi said.
SKA filed a complaint against the cancellation of the contract to the country’s High Court.
Analysts say the government believes SKA has not lived up to their promises to develop the airport, which lead to the cancellation.
The government considers Favori a trustworthy firm and hopes modernizing the airport which has only one terminal and 12 working hours.
“We are here to take the airports administration from SKA to complete the cabinet’s decision and handover to Favori, we are expecting from the firm to develop the airport’s services.” Ilmoge told government run radio on 14th September.
Favori is scheduled to takeover the airport duties today [15th September 2013], but the High Court gave SKA four months to file a case to the courts in charge.
“Pending a court decision regarding the dispute, the high court puts a stop to the contract cancellation process in a period of not more than four months and SKA is required to file a case to the courts in charge.” A statement from the high court said on Saturday.
Is it a legal process to cancel the contract with SKA?
The Chairperson of the Parliament’s Transportation Committee Osman Adan Dhubow says the process is illegal.
“It is despise and disrespectful to call off an agreement between the TFG and International company, and signing a contract with other company without the awareness of the parliament.” Dhubow told Somali Current.
The result of canceling the contract
Since September of last year, the end of Somalia’s eight year of transitional governments, the number of foreign companies interested in investing in the country have being increasing and the government has signed contracts with companies including Soma oil and gas exploration, a UK-based firm. But analysts are still concerned about the government’s duty to honor the contracts signed.
“The cancellation of SKA contract will put a question mark on the confidence of international companies for the government.” Pilot Ali Yusuf Abdi, analyst in Mogadishu, told Somali Current.
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