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DP World - a state owned company of Dubai’s
government - has shown a strong interest to enter
into the Ethiopian market, eyeing a potential for
investment in rehabilitating the Ethio-Djibouti
railway line and developing a green project of
installing a pipe line for oil, from Djibouti.
DP World is a subsidiary company of Dubai World,
which manages and supervises a diversified portfolio
of businesses and projects in Dubai.
A
group of 11 have come to Addis Abeba last week, led
by Sheikh Sultan Ahmed Bin-Suleiman, chairman of
DP-World. He was accompanied by Abdurahiman Boure, a
multimillionaire businessman in Djibouti, and
chairman of the Djibouti Port Authority. The Port of
Djibouti is managed by DP World, under a 20-year
management contract.
If realized, not only will these projects require
them spend close to two billion dollars, it will
also put them on head on competition with the
Kuwaitis that have shown similar interests.
Mr. Bin-Suleiman and Mr. Boure spent a day in Addis
and met Ethiopian officials, including Prime
Minister Meles Zenawi, on Thursday, July 10.
The delegation told Meles that the company has
interests to get management concessions to operate
the 761Km Ethio-Djibouti railway line, and to
install a pipeline that runs from Djibouti to Awash
area, reliable sources disclosed. It has also
requested to be involved in hotel and tourism
business.
The delegates are particularly interested in
investing one billion dollars for each of the
railway and pipeline projects. Meles reportedly
emphasized his government’s priority in the two
projects, and pledged his support, according to
these sources.
Suleiman and Boure also met President Girma W.
Giorgis, and Abadulla Gemeda, chief of the Oromia
Regional State, in the presence of Junadin Sado,
minister of Transport and Communications (MoTC), and
Alemayehu Tegenu, minister of Mines and Energy (MoME).
Abadulla has promised
to make Green Lake, a 53Skm radius lake in Bishoftu
(Deberezeit) town available to DP World. Green Lake,
one of the seven lakes in the town, is known for its
algae and the top sloppy landscape makes convenient
for recreational sites, according to Solomon Kebede,
deputy mayor of the town.
“We want to make this town [Bishoftu] a prime
tourist destination,” Solomon told Fortune.
“If this company, with its huge investment ability,
enters into our town, we will be delighted.”
Dubai World is Dubai’s aggressive arm of investment
both domestically and abroad. It owns diverse and
successful companies, including Dubai Ports World,
(DP World), P&O, Free Zone World, Dubai Drydocks,
Dubai Maritimes City, Dubai Multi Commodities
Center, Limitless, Nakheel, Istithmar, Tajri.com,
Inchicape Shipping Services and Technology.
DP World is today one of the top three marine
terminal operators in the world and built the widest
industry network with 51 terminals spanning 24
countries, including the Port of Djibouti. It bought
the UK’s P&O Group for 6.8 billion dollars in March
2006, making the largest acquisition in the
industry’s history, and plans to inject an
investment of three billion dollars.
The main purpose of the delegation’s visit is to
ensure that Ethiopia will continue to use the DP
World-managed Djibouti Port, according to a
businessman who is familiar with the delegation.
Three businesspeople - Alemayehu Ketema, in
construction, Warda H. Graham, in import and export,
and Shimeles Kinde, in the IT industry - have
facilitated the delegation’s visit.
“We appreciate these businesspeople who are lobbying
on this huge company to invest in Ethiopia,” Alemu
Sime, commissioner for the Oromia Investment
Commission, told Fortune.
Senior ministers from the federal government are
also pleased with the visit, for they believe DP
World could succeed in its investment in Ethiopia.
“If the company is interested, we will be happy to
welcome them,” a senior minister told Fortune.
Another area of interest to DP World is the fuel
transportation sector. It plans to develop petroleum
to Awash from a future refinery in the Port
Djibouti, a news described by an official from the
federal government as too good for landlocked
Ethiopia. Promoters of the project claim that
Ethiopia could save up to 100 million dollars spent
on fuel, if this deal succeeds.
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