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How Somalia is building a bridge to the future through public-private partnerships

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How Somalia is building a bridge to the future through public-private partnerships

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As the sun sets over Istanbul’s vibrant cityscape, I can’t help but reflect on the insights and experiences I gained during my visit to Turkey. As representatives of a delegation of Somali government officials from various ministries and private sector leaders, our mission was clear: to explore and understand the complexities of public-private partnerships (PPPs) and to envision how these partnerships can be used to advance Somalia’s ambitious plan, the National Transformation Program (NTP) 2025-2029.

Our journey took us through the heart of Turkey’s infrastructure wonder, from the impressive North Marmara Highway and the Third Bosporus Bridge to the world-renowned Ankara Bilkent City Hospital, Ankara Airport and the state-of-the-art Eurasia Tunnel. Each of these projects demonstrated the transformative power of PPPs, collaborative efforts between the public and private sectors that not only achieve infrastructure that meets but exceeds global standards.

Our visit kicked off with a warm reception by Mr. Ilhan Hatipoğlu, Deputy Minister of Finance, at the Ministry of Finance’s Emek Campus in Ankara. The Somali delegation, led by Deputy Minister of Finance Abdiqafar Elmi Hange, expressed our enthusiasm for the potential of PPPs. In his speech, Abdiqafar hinted that it is the right time for Somalia to advance PPPs as part of its post-HIPC strategy and stressed the importance of leveraging these partnerships to accelerate our country’s transformation agenda.

The opening ceremony provided a comprehensive overview of Turkey’s PPP legal framework and regulatory environment. Turkey has strategically adopted various PPP models targeting specific sectors to promote infrastructure development and improve public services. The Build-Operate-Transfer (BOT) model in the transportation sector, the Build-Own (BO) model in the energy sector, and the Build-Lease-Transfer (BLT) model in the health sector are crucial.

In contrast, the Philippines and Malaysia use the BLT model in the airport and public transportation sectors, the United States and India use the BO model in the energy sector, and Brazil and South Africa effectively use the right transfer model in the transportation sector. Although different countries use different models, they generally use the PPP model to create value for money and effectively transfer risks.

Relevance to Somalia: PPP as a catalyst for transformation

The importance of public-private partnerships for Somalia cannot be overstated. As we embark on the ambitious path set out in the National Transformation Plan, a focus on private investment, job creation and improved government performance is critical. Public-private partnerships provide a structured framework for achieving these goals by leveraging the expertise, efficiency and capital of the private sector.

Somalia has long considered implementing public-private partnerships, but now, under the visionary leadership of Prime Minister Hamza Abdi, we see a determination to advance these initiatives. This momentum fits perfectly with the broader Vision 2060, spearheaded by President Hassan Sheikh Mohamud, which aims to propel Somalia into a new era of sustainable development and economic prosperity.

Logistics Infrastructure: The Prospects of PPP in the Somalia National Emergency Plan

The area of ​​logistics infrastructure is one of the most promising areas for public-private partnerships in Somalia. Our discussions in Turkey highlighted the importance of modern and efficient transportation networks to support economic activity. In Somalia, the establishment of an independent laboratory focused on logistics infrastructure under the National Transport Planning Agency could pave the way for significant advances in this area.

Imagine modern airports that will boost trade and tourism, ports that will serve as gateways for international trade, highways and bridges that will connect remote areas, promoting inclusion and development. In addition, building new fishing ports will boost our fisheries, provide more jobs, and contribute to food security.

Building regional roads connecting all regions will not only boost domestic trade, but will also increase trade volumes with neighboring countries. Now that Somalia has joined the East African Community, this connectivity is vital as it will allow our goods to reach a wider market, boosting regional economic integration and growth. Each of these projects can attract significant private investment, driving job creation and economic growth. The collaborative efforts of these labs will ensure that these projects are not just dreams, but achievable milestones that attract investors and stakeholders who share the same vision for a prosperous Somalia.

Energy industry: driving economic transformation

Somalia’s energy sector is another key area where PPPs can drive change. The country is energy-poor and reliable electricity supply is essential for economic development. The NTP prioritizes energy infrastructure, recognizing that access to affordable and sustainable energy is a cornerstone of industrial growth, improved living standards, and overall economic resilience.

Through public-private partnerships, Somalia can attract investments in renewable energy projects, such as solar and wind farms, which are plentiful due to our geographical location. In addition, modernizing existing power plants and extending the grid to rural areas will provide much-needed energy for households and industries. These initiatives will not only meet current energy needs, but also ensure future growth and sustainability. The public-private partnership model allows for the sharing of risks and rewards, making large-scale energy projects viable and attractive to private investors.

Healthcare: Transforming Somalia’s health infrastructure

The most striking building during our visit was the Bilkent City Hospital in Ankara. This large medical facility has 4,050 beds and 1.3 million square meters of indoor space, making it the largest integrated hospital in the world. It is a prime example of PPP delivering state-of-the-art medical infrastructure. In contrast, Somalia’s medical infrastructure is in dire need of significant investment. Many of our citizens are forced to travel abroad for medical care, which is extremely costly. By developing similar medical facilities through PPP, we can significantly reduce these costs, provide quality medical care at home, and improve the overall health of our population.

Tourism facilities: Unleashing economic potential

Another sector suitable for PPP is tourism. With its rich cultural heritage, magnificent scenery and historical significance, Somalia has great potential to become a popular tourist destination. By developing world-class tourism facilities through PPP, we can not only attract more tourists, but also create a large number of jobs, boost the local economy and promote cultural exchanges.

Take the example of former government-owned hotels such as Juba and Uruba in Mogadishu. Revitalizing these hotels and converting major government-owned facilities into hotels, apartments, malls and offices can generate significant revenue, create jobs, and help with security. This will not only revitalize our tourism industry, but also ensure that these historical landmarks are protected and effectively used.

Addressing unemployment and security issues through PPP

One of the most pressing challenges facing Somalia is youth unemployment, which contributes greatly to insecurity. By creating jobs through PPP projects, we can address this challenge head-on. Whether it is building new hospitals, developing tourism infrastructure or modernizing logistics networks, these projects require a skilled workforce, thereby employing thousands of young Somalis. This not only promotes economic development, but also enhances security, as young people with income are less likely to be involved in activities that threaten the country’s stability.

Key projects and insights from Turkey

During our visit, we had the opportunity to visit several key projects that exemplify the success of PPP in Türkiye:

Bilkent City Hospital, Ankara: This large medical facility, with 4,050 beds and 1.3 million square meters of indoor space, is the largest integrated hospital in the world. It is a prime example of PPP providing state-of-the-art medical infrastructure.

North Marmara Highway and Third Bosphorus Bridge: These projects demonstrate the efficiency and scale that can be achieved through PPPs, significantly improving connectivity and easing traffic congestion in Istanbul.

Eurasia Tunnel: This undersea tunnel connecting Istanbul’s European and Asian sides is an engineering marvel and a testament to the transformative power of public-private partnerships in urban infrastructure.

The way forward: Embracing PPP to achieve sustainable economic transformation

Turkey’s successful PPP project experience provides a valuable blueprint for Somalia. By adopting PPP, we can accelerate infrastructure construction, attract private investment, and create a favorable environment for economic growth. An independent laboratory dedicated to logistics infrastructure will be a key step in this direction, focusing on airports, ports, roads, highways and bridges.

Furthermore, public-private partnerships will play a key role in Somalia’s post-HIPC strategy, ensuring we build a resilient and diversified economy. The positive impact of public-private partnerships on sustainable economic transformation is multifaceted – from improving public services and infrastructure to promoting innovation and creating jobs.

We returned to Somalia more determined than ever to implement the insights and strategies we learned from our Turkish counterparts. Under the determined leadership of President Hassan Sheikh and Prime Minister Hamza Abdi, Somalia is ready to fully leverage the potential of PPPs, advance our national transformation plan, and pave the way for a brighter and more prosperous future.

The writer is Deputy Permanent Secretary, Office of the Prime Minister of Somalia. Abdullah Adan, Director General, Ministry of Water and Energy, and Amina Osman, Private Sector-led Growth Advisor, Office of the Prime Minister, also contributed to this article.

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