Aden Port: Stuck Negotiations [Archives:2006/987/Local News]

ADEN, Oct. 4 ) Negotiations with the Dubai Ports Authority are still in a stand-still while the Yemeni Government awaits the decision of the International Company and its local partner, The Buqshan Group, with regards to the president's decision to halt the operation allowing the Dubai company to manage the Aden Container Port and renegotiate the terms of the agreement.

A committee headed by the Minister of Justice as well as several cabinet ministers and parliament members was formed in order to discuss the terms of the agreement which was signed in July 2005 in order to present the modifications on the terms found to be 'unfair' to the Yemeni side.

Sources close to the Buqshan group said Abdullah Buqshan is upset because of the government's stance with regards to its legal obligations in accordance to the signed agreement.

He has forwarded the modifications demanded by the Yemeni side which include the duration of the agreement, financial returns and also terms of arbitration, to the Dubai Company, the source also said there are increasing fears they might simply cancel negotiations and void the agreement, which potentially might be a blow to the Yemeni side.

The agreement included three major activities, the operation of the industrial zone in the Aden Free zone, the operation of the cargo zone in Aden airport, and the operation of Aden's container port. Experts indicate that Dubai was excited about the project and was formulating plans in order to develop and transform the port into a world-class center for international trade, but those plans have crumpled after the president's decision.
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