Somaliland Private Sector Gives New Lease of Life to Ageing Power Plant as HEC


The government-owned Hargeisa power plant today became the Hargeisa Energy Company (HEC) jointly owned by the government Mohamed Saed Gueddi (MSG) Company, Dahabshiil Group and Idiris Hamud (Aloog).

In a ceremony to honor the occasion held at Maansoor hotel, it was announced that the government will retain a share of 20% where MSG and Dahabshiil will each take over 35% share as Aloog takes the remaining 10%.

His Excellency the Vice President of the Republic of Somaliland, Abdirahman Abdullahi Ismail ‘Zeili’I’, speaking at the ceremony underlined the importance of public-private partnerships as a catalyst to development, quality delivery of services and job creation.

“We have a responsibility to find investors for ailing plants and enterprises as well as for the generation of new economic and industrial manufacture ventures to egg on the development of the country to new heights and new possibilities, and in order to guarantee the long-term sustainability of the production and services sectors of the republic of Somaliland,” he said.

The Minister for Public Works, H.E. Abdirizak Khalif, spoke of the state of the power plant before the private companies, that agreed to take a share in the plant in order to resuscitate it, came to its aid.

“It was a choice – and the right one – that we made. The only other option available has failed a number of times before, and held no hope for a better change in the near future,” he said.

The Minister revealed that the only two plants that remained in the hands of the government were the two ageing power plants of Hargeisa and Berbera – the former of which was still using 30-year old generators for the bulk of its consumer utility.

The Minister said that the new venture will reduce the rate of KW from the current $1/KW charged by private companies to 70 US cents which will be gradually reduced to not more than US$ 0.30 in three years time.

“This move is a practical new lease of life for the ageing plant,” the Minister said.

The Minister for Youth and Sports expressed his high hopes for an improved service to consumers in the company’s new form.

The Auditor General of ROS  promised that his office will see to it neither the public nor the government loses on this deal.

The Vice Minister of Public Works Ali Abdi Saa’ik spoke of salient highlights in the recent past of the power plant pointing out that the government sought private partnership only after it brought the struggling plant to a break-even point which took them around nine months to accomplish.

Musa Behi Abdi, the Chairman of the Ruling Party, reiterated the government commitment to the development of the industrial sector by encouraging, primarily, confidence on and trust of partnerships between the public and the private sector.

The Governor of Maroodijeex, Jeeniyare, greatly welcomed the step that the government has taken to ensure the continued services of the plant to the public it served.

Ismail and Sugal each spoke on behalf of the only two other power companies in Hargeisa, the General Electric and Alel, welcoming the new company to the market. The two officers also spoke of their hopes for cooperation among the companies for the benefit of the consumer.

Ahmed Sultan and Abdi Farah, representing MSG and Dahabshiil, on their part, promised Hargeisa residents that the frequent power cut abd break down of generataors of the old plant will be a thing of the past.

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