Sudan makes partial repayment to ICTSI over troubled terminal

Ports operator giant International Container Terminal Services Inc. (ICTSI) of billionaire Enrique Razon Jr. said it has been partially repaid by the Sudanese government for its failure to turn over to the company the South Port Container Terminal at the Port of Sudan within the agreed time frame.

ICTSI said the Sudanese Ministry of Finance and Economic Planning has sent the company a letter confirming the remittance of 195.2 million euros as partial repayment of the 410 million euros upfront fee in accordance with a refund bond.

The company was also informed that the balance will be repaid as soon as possible.

“The partial payment of the upfront fee is in relation to the terms of the refund bond, particularly due to the failure of the Sudanese government to turn over the South Port Container Terminal at the Port of Sudan to ICTSI within the agreed time frame,” ICTSI senior vice president and chief financial officer Rafael Consing Jr. said.

The turnover of the South Port Container Terminal to ICTSI has faced challenges due to the ongoing political instability in Sudan.

ICTSI said it is in continuous discussion with the Sudanese government for the repayment schedule of the balance of the upfront fee.

It said it also “continues to reserve its rights under the concession agreement.”

Consing said the company remains keen on pushing through with its take over of the container terminal.

“We understand that the Transition Military Council and the Sudanese civilians are scheduled to formally sign a power sharing agreement on Aug. 17, which will lay out the terms of government for the next three years. Once a new government is in place, detailed discussions pertaining to the concession agreement can take place,” he said.

ICTSI announced in January its expansion in Sudan through its wholly owned subsidiary ICTSI Middle East DMCC after it signed a concession agreement with Sea Ports Corp. of Sudan to operate, manage and develop the South Port Container Terminal at Port Sudan.

However, Agence FrancePresse reported in March that Sudanese President Omar alBashir has ordered a review of the ICTSI deal involving the transfer container terminal at Port Sudan after hundreds of workers in February went on strike in protest against the transaction.

Reuters reported in April that Sudan’s Transitional Military Council “issued a presidential decree to suspend the contracts of the Filipino company working at Port Sudan’s southern port until legal measures are completed to cancel the contract.”