The construction of the project will take on a 12-month to complete according to the agreement.
The project, expected to start in early 2023, will include the development of a 150-metre quay, as well as repairs to the current 215-metre quay.
It will include the development of a new 3,000-square-metre container yard and a 4,000-square-metre container stripping yard. The gate area to the port will also be upgraded to improve access control.
Once complete, the port will be able to handle container vessels and attract more direct calls from feeder ships from Dubai and other regional hubs.
It is also expected to become an important hub for dhow transport serving the Somali coast.
“The expansion and upgrade of the Port of Bosaso is key to Puntland’s economic growth, which will benefit not just the people of the state, but also Somalia and the Horn of Africa,” said Ahmed Yaasiin Saalah, Puntland’s Minister of Ports and Maritime Transport.
“It will ensure the region is further integrated into the global trade ecosystem, as a bigger, more-efficient port with the ability to receive container vessels will facilitate increased trade.”