Sudan, UAE’s consortium sign $6-bln deal to build new port on Red Sea
December 13, 2022 (KHARTOUM)- The Sudanese government and a consortium of Emirati companies signed, on Tuesday, a preliminary agreement to develop and operate the Abu Amama port on the Red Sea, with investments amounting to $6 billion.
The Heads of Terms agreement, which provides the UAE consortium with the right to develop, manage, and operate Abu Amama Port port and economic zone assets, was signed by the Government of the Republic of Sudan and the UAE’s consortium of Abu Dhabi Ports Group and Invictus Investment Company PLC.
The deal was signed by Ibrahim Gibril Sudanese Minister of Finance and Osama Daoud Abdellatif, Invictus Chairman. The signing ceremony which took place at the Republican Palace was attended by Lt Gen Ibrahim Jabir a member of the Transitional Sovereignty Council.
“Under the terms of the agreement, the consortium will have the sole right to directly develop, manage, and operate specified port and economic zones assets and to create joint ventures, partnerships, or other business agreements to support the financing, development, construction, management, and operation of the projects,” reads a statement issued by the consortium.
The new port and the economic zone are located 200 km north of Port Sudan.
The deal includes an agricultural zone of 400,000 feddans (415,000 acres) in the Abu Hamad area of River Nile State. Also, a 450 km long road will link the zone with the new port on the Red Sea.
The Sudanese minister said that the port will be equipped with the latest modern technology, pointing out that the $6 billion project includes an industrial area, a tourist area, an international airport, a residential complex, internal roads and a power station,
He added that the project would contribute to solving the drought issue in Port Sudan and mining areas by delivering water from the Nile River.
The agreement includes the construction of a water pipeline that pumps about 2,000,000 cubic meters per day from the Nile River to the Red Sea State.
The military government, which reversed the civilian government in October 2021, is facing international pressure to hand over power to a civilian government. The international community paused economic support and development projects.
The UAE is part of a QUAD group led by the United States supporting the efforts of the tripartite facilitation mechanism to end the political crisis in Sudan triggered by the military coup.
(ST)