Ebrima Sillah, the minister of works and infrastructure, told parliament that the government has been awarded a $20.1 million grant to build a new deep seaport in Sanyang, expand the ports, and buy two new ferries.
A new integrated national transport master plan will be prepared under the Ministry of Transport, Works, and Infrastructure, one of the two new green ferries will be financed, Bond road access to the Port of Banjul will be completed and widened, the Ministry of Transport, Works, and Infrastructure will be strengthened, and the project will incorporate gender mainstreaming and climate resilience, he said.
“It is not only going to create employment but it will sustain the current employment portfolio and outlay the ones we have at the Port of Banjul,” he said in response to a question about whether this would result in job creation.
According to him, the Port Expansion Project is being carried out through the signing of a concession agreement for a public-private partnership on July 11, 2024, in which the private investor commits to six years of infrastructure enhancements in the Port of Banjul starting on January 10, 2025.
He went on to say that the concession agreement also covers the building of a new deep seaport in Sanyang over a 30-year period.
He added: “With effect from January 10, 2025, the private investor must manage the Port of Banjul for six years under an equity shareholding arrangement and make minimal investments or infrastructure improvements in the port.”
The concession deal also covers the financing, building, management, operation, maintenance, and eventual return to the government of a deep seaport in Sanyang for a duration of 30 years.
“The concession agreements are notable because the Gambia Ports Authority and the Gambia government will own 20% of the Special Purpose Vehicle (SPV).”
He went on to say that a portion of the total earnings would go to the Gambia Ports Authority and the Gambia government. In six years, the investor will make an investment to enhance Banjul’s efficiency measures. He explains that the net gains in Banjul will be placed as reserve cash in an escrow account.
The Sanyang deep sea port will be the intended investment for the reserve monies. The concessionaire, Al-Barak Group, will maintain all of the employees already engaged in the business. The Gambia Ports Authority will be represented on the project company’s board and management.
“The Gambia government and the Gambia Ports Authority will not be providing any financial assistance as the investor assumes their own financing risk,” he added.
According to him, Sanyang port’s “drafts in the channel will be 12 meters,” which is better than Banjul’s present 9.3 meters. He went on to say, “Capacity increases at the deep seaport will result in lower overall costs of doing business.”
He clarified that deeper draft ships would call at Sanyang, resulting in cheaper freight rates, and that the Gambia government and the GPA would be compensated as shareholders with dividends. “The improved port infrastructure that will be built will benefit the Gambia government and the Gambia Ports Authority,” he said.
