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Public & Private Sector Strategic Investment and Infrastructure Development in Berbera, Somaliland
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Project description

 
Berbera City, situated on the southern shores of the Gulf of Aden, is the major port town of Somaliland. Its climate is hot and humid with temperatures above 40 degrees Centigrade in the summer and a semi-desert landscape. Berbera has a population of around 50,000 that decreases with seasonal migration to cooler inland cities during the hot seasons. Berbera, one of the oldest towns along the Somali coast, is mentioned in reports by Greek merchants dating back to the first century CE. It has a long history as an important regional trading centre, and its significance was noted by early Chinese and Arab scholars and geographers. Over the years, Portuguese, Ottoman, Egyptian and British forces fought over the control of this strategic, natural port with its vibrant economy, nearby fresh water springs and abundant hinterland recourses. The town served as the colonial capital and main sea port of British Somaliland until 1941 when the capital was moved to Hargeisa, the current principal city of Somaliland. Up to the early 1970s, Berbera had consistent improvements in port facilities and vibrant trading due to influence from the Soviet bloc. The civil war of the 1980 and 1990s destroyed Berbera’s infrastructure, most notably the cement factory, government buildings and the water supply system. The latter has since been rehabilitated and expanded with the assistance of several international organizations, including COOPI, THW, UNICEF and UN-HABITAT. Between 2000 and 2003, UN-HABITAT implemented the Berbera technical and Institutional Assistance project (TIAP), which, among others, resulted in the rehabilitation of the local authority offices, the central market, and the municipal dumpsite. In addition, capacity was built in the field of municipal finance, urban planning, engineering and land management. Berbera port remains the key entry point for goods to Somaliland and Ethiopia and a major source of income for the Sahil region. Exports through Berbera include sheep, goats, camels, hides, ghee, frankincense, myrrh and gum Arabic. However, despite its continuous role as an important regional port, the economic importance of the town has sharply declined, in particular with respect to its potential as a leading regional hub for trade, production and transport.
Location: Berbera, Somaliland
Branch:
- Regional Office for Arab States
Partner: Office of the Vice President, Ministry of Planning, Ministry of Industrial development, Ministry of Water & Mineral Resources, Berbera Municipal Authority, Private Sector
Themes:
- Urban Development and Management
- Building materials and technology
- Water Sanitation and Infrastructure
Budget: USD 2,500,000
Received/Pledged:

Focus Area(s)

- FA2: Promotion of participatory urban planning, management and governance
- FA3: Promote pro-poor land and housing
- FA4: Environmentally sound basic urban infrastructure and services

Background

The Berbera City Consultation held in Berbera in January 2005 as part of the UN-HABITAT Good Local Governance and Leadership Training Programme (GLTP), with participation from local and central government, NGOs, private sector and community representatives, identified the following local priority areas for Berbera’s urban development: 
  • Inadequate basic urban services:  inadequate and expensive electricity; water scarcity and poor water distribution and quality; poor sanitation and hygiene standards
  • Poor local governance structures: poor relationship between local council and community; poor municipal revenue collection systems; damaged public buildings and infrastructure
  • Poor economic opportunities: stagnation of local production and markets; dilapidated industrial infrastructure (cement, fishery and salt factories); unemployment
  • Environmental degradation: poor solid and liquid waste management as a major cause of environment-related disease both in children and adults. The environmental quality, together with safe drinking water, proper sanitation, and solid/fluid-waste management systems are essential in determining whether children and young people survive the first years of life, and strongly influence their subsequent physical and mental development.

Subsequent consultations between UN-HABITAT and Somaliland authorities have focused on the fact that large-scale reconstruction of infrastructure has been neglected but was needed in order to give Somaliland a more solid basis for economic and social recovery.  The Somaliland Government therefore identified the following national level priorities for the development of Berbera and its environs to attract investments for national economic and social recovery.  

  • Cement factory: The rehabilitation of the cement factory in order to strengthen develop and expand further the local construction industry as one of the motors of the national economy and creators of opportunities for employment is a top priority of the Somaliland national development agenda. The Berbera cement plant had a capacity of 300,000 t/yr but needs substantial rehabilitation work and investments to resume production. The Government is in contact with the private sector to inject capital to revive the factory in a proposed 51% government and  49% private shareholding plan
  • Wind and solar energy: The introduction of alternative (wind and solar) energy sources is i) needed for industrial revival ii) less dependency on non-renewable sources of energy for small investors and businesses iii) and employment creation in the small and medium enterprises (SME) sector in the region
  • Berbera airport: The airport is in need of both physical improvements of its port facilities such as parking, terminals, maintenance hubs, and bulk storage/warehousing as well as security features to complement Berbera port in transport of goods and develop Berbera as a strategic traffic hub of regional outreach and of significant scale and magnitude;
  • Desalinization of sea water: Investments in sustainable desalinization of sea water to enhance the availability of safe drinking, domestic and agricultural water uses will be a major boost to economic recovery and service delivery in the region
 Objectives
  • Secure high level government support and commitment to the plan for public and private sector strategic investment and infrastructure development in Berbera
  • Conduct comprehensive and detailed feasibility studies for strategic investments and infrastructure development in the four identified priority areas
  • Prepare investment and implementation proposals for strategic investments and infrastructural and environmental development in approved priority area
 Target Group  

Public & Private Sector in Berbera, Somaliland



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