Ministry of Agriculture and Irrigation Federal Government Somalia
Project Completion Report of
Agriculture for Sustainable
Development
Report
By
Ministry of Agriculture and Irrigation Federal Government Somalia
May 2019
EXECUTIVE SUMMARY
The Ministry of Agriculture and Irrigation is one of the primary ministries of government of
Somalia responsible for designing, implementing, and managing all government activities
within the agricultural. MOAAI facilitates and supports the development of sustainable,
diversified and competitive agricultural sector that assures food and nutrition security,
contributes to job creation and maximizes the sector’s contribution to GDP and also contribute
to poverty reduction. Agriculture plays a fundamental role in fulfilling many of humanity’s
basic needs: food, feed and energy. To support growers and those who take care of our
environment MOAAI develops innovative solutions for farming so that we can effectively
contribute to improving for people’s lives and their demands.
The Ministry had made many activities towards the project approval, project development, and
project financing. The staffs of the Ministry of agriculture are many members to work. The
project was intended to develop agricultural projects throughout central of Somalia. The overall
project cost was estimated $ 41,525,000.00 plus 5% profit rate annually. The payment method
was installment that consists of $2,076,250.00 profit per year and $13,841,666.67 principle
amount per year through 3 years. The project execution time was one year.
INTRODUCTION
Over the past three decades, the livestock and crop subsectors have been buffeted by Somalia’s
increasingly fragile and degraded natural environment and more frequent and severe cycles of
drought and floods. These factors, as well as continuing insecurity and lack of or weak
government institutions and the consequent deterioration of the flood control, irrigation, and
transport infrastructure in the Southern regions, have severely reduced crop production.
Livestock and crops nonetheless remain the main sources of economic activity, employment,
and exports in Somalia. Despite the country’s rich fishing grounds, coastal fishing has remained
small-scale and artisanal while foreign commercial vessels have enjoyed both legal and illegal
harvesting offshore. About 49 percent of the population still lives in rural areas, with 46 percent
of employed people working in agriculture (25 percent in crop cultivation, 9 percent in herding,
4 percent in fishing, and 7 percent in related activities).
Largely because of the dramatic expansion of the relative economic importance of livestock
production and exports, agriculture’s share of GDP has risen significantly from its prewar level
of about 62 percent to possibly 75 percent or higher. Before the civil war, the crop subsector
was the second-largest contributor to GDP and exports, after livestock. It remains crucial for
food security, but its contribution to the economy is much smaller than it was, as over the past
three decades, the volume of cereal production has declined by almost 60 percent from its 1989
peak.
This reflects the inheritance of violent conflict but is increasingly overlaid with weakness to
climate shocks whose impact is in turn worsen by lack of investments in resilience. 6.2 million
People across Somalia are estimated to be food insecure through June 2017, of which nearly 3
million need emergency assistance in reaction of this. The Ministry of agriculture has proposed
to improve a project for sustainable development. Throughout at south Somali regions,
especially Galmudug state to improve the country’s agricultural projects and export of the
worldwide.
Ministry of agriculture and irrigation federal government Somalia concerning the development
of agriculture for sustainable development, especially developing in the Middle East. This
Ministry was acting as an authority to the project completion of agriculture for sustainable
development. The Ministry has the role to monitor and evaluate the progress and completion
of this project, and the implementation & operation of the project delegated to the government.
The central region of Somalia was assigned to contract for agriculture for sustainable
development of all Galmudug regions, the function of development, construction and repair for
the development of the agriculture is responsible by the ministry. After seeking carefully and
negotiation of this department, it was founded that it is important to construct this project.
PROJECT INFORMATION
The Ministry of Agriculture and Irrigation is one of the primary ministries of government of
Somalia responsible for designing, implementing, and managing all government activities
within the agricultural. The ministry was acting as an authority to the project completion of
agriculture for sustainable development.
The ministry estimated the overall budget of this project agriculture for sustainable
development which implemented the central regions especial Galmudug, the project duration
was three years and the estimated cost was ($ 41,525,000).
When the project was completed, the ministry agreed a contract to Ana’am Livestock and
Agricultural products to operate the project and to recover the initial investment of the project
costs and expenses, and finally they succeed to recover all costs and expenses.
THE PROJECT COST ANALYSIS REPORT
The coming table shows the costs incurred to implement this project of agriculture for
sustainable development, generally three costs as incurred while implementing this project and
it was farming costs, livestock and poultry costs and personnel costs.
Total cost of farming
$ 6,375,000
Total cost of livestock and poultry
$ 9,950,000
Total cost for personnel
$ 25,200,000
Grand Total cost for the project
$ 41,525,000
Finally, the ministry implemented this project of Agriculture for sustainable development and
planned to give agricultural projects to the all regions of Galmudug and export to the neighbor
regions and even outside of the country.to recover the initial investment of this project the
ministry delegated to an external part and assigned a contract, which is to operate the project.
Ministry of Agriculture and Irrigation Federal Government of Somalia
Mogadishu, Somalia
+252618309167
moa.gov.so.b1@gmail.com
PROFILE OF THE MINISTRY
Country:
Somalia
Headquarter:
Mogadishu
Street address:
Waaberi
Fax:
Pox 1432
Email:
moa.gov.so.b1@gmail.com
Website:
www.moa.gov.so
The Minister:
Ifrah Abdulkadir Hussein
BACKGROUND OF THE MINISTRY
The Ministry of Agriculture and Irrigation is one of the primary ministries of government of
Somalia responsible for designing, implementing, and managing all government activities
within the agricultural. MOAAI facilitates and supports the development of sustainable,
diversified and competitive agricultural sector that assures food and nutrition security,
contributes to job creation and maximizes the sector’s contribution to GDP and contribute to
poverty reduction. Agriculture plays a fundamental role in fulfilling many of humanity’s basic
needs: food, feed and energy. To support growers and those who take care of our environment
MOA&I develops innovative solutions for farming so that we can effectively contribute to
improving for people’s lives and their demands.
VISION
Create a modern and a highly productive agricultural system that uses a more advanced
technology that enables the society to get rid of poverty.
MISSION
Our mission is to have a highly skilled and motivated staff with adequate resources to
effectively contribute towards creation of a vibrant Ministry.
OBJECTIVES

Promoting integrated farming system covering crops, livestock, plantation and pasture
based composite farming for enhancing livelihood opportunities, ensuring food security
and minimizing risks from crop failure through supplementary/ residual production
systems;.

Encouraging improved agronomic practices for higher farm productivity, improved soil
treatment, increased water holding capacity, judicious use of chemicals/ energy and
enhanced soil carbon storage;

Promoting location and crop specific integrated nutrient management practices for
improving soil health, enhancing crop productivity and maintaining quality of land and
water resources;

To prevent, control and contain diseases, vectors and pests in order to enhance
agricultural production and productivity

To promote and strengthen efficient and effective management of agricultural
production and productivity in order to ensure sustainable household and national food
and nutrition security, and increased incomes.

To promote and strengthen efficient and effective management of agricultural
production and productivity in order to ensure sustainable household and national food
and nutrition security, and increased incomes.
CORE VALUES

INTEGRITY: respect, transparency, honesty are pillars for our business success.

PROFESSIONALISM: our experienced team of experts offers professional products
and services within a record timeline of our response to customer’s needs.

ENVIRONMENT PROTECTION: In all our work, we emphasize and encourage the
use of environmentally friendly inputs, materials, means and practices.
ORGANIZATIONAL CHART OF MINISTRY OF AGRICULTURE IN SOMALIA
The minister
Ifrah Abdulkadir Hussein
Director General
Salman Sharif Abdulle
Financial Section
Farhan Abdi Bare
Development Section
Fardowsa Ahmed Hirsi
Ministry of Agriculture and Irrigation Federal Government of Somalia
Mogadishu, Somalia
+252618309167
Project proposal: Agriculture for Sustainable Development
PROJECT TITLE:
Agriculture for Sustainable Development
CONTACT PERSON:
Ifrah Abdulkadir Hussein
Minister of MOA$I
moa.gov.so@gmail.com
LEGAL STATUS:
Registered with: Ministry of Agriculture & Irrigation
PROJECT LOCATION:
Galkacyo, Galmudug State
CONTACT ADDRESS:
Ministry of Agriculture & Irrigation
Waaberi,
Mogadishu- Somalia,
horn of Africa.
PROJECT BENEFICIARIES:
All society lives in Galmudug, especially youths.
PROJECT DURATION:
3 years
BACKGROUND INFORMATION
Agriculture for Sustainable Development is a project of Ministry of Agriculture and Irrigation
on behalf of 140 unemployed and marginalized young people of affiliate youth groups /
organization.
Pursuant of the Organization’s aim to cater for the Development of young people. MOA seeks
to help youths without basic or no education at all acquire vocational and practical skills or
engage in productive income generating activities to make them self-reliant and responsible.
MOA in collaboration with some of affiliate youth groups have initiated this project.
The project targets marginalized and unemployed youths of affiliate groups / organization that
can be gainfully engaged in agricultural related activities vis-à-vis production. The
Organization has acquired 37 acres of land along the Galkacyo, Galmudug State Rural Area
for the said purpose. The land belongs to an affiliate group, which has decided to make it
available to MOA for the intended project.
A total of 140 youths has been mobilized to be gainfully engaged in the project. These youths
are lived at Galkacyo, unemployed youths from affiliate groups such as Somali Youth
Development Network (SOYDEN), Somali Youth Volunteers Development Association
(SOYDA), and Somali Youth Development Foundation.
These youths have been divided into four groups of thirty-five persons and shall be engaged in
the following agricultural activities:
(A) FARMING
i. Swampland & upland cultivation
ii. Vegetable production – pepper, garlic, tomatoes, broad beans, okra, watermelon and
carrot
iii. Onion
iv. Potatoes
v. Sweet potato
(B)
LIVESTOCK FARMIN
i. Poultry – chicken & ducks
ii. Animal husbandry – goat and sheep
PROJECT DECRIPTION:
Four groups of young people shall be engaged in the aforementioned agricultural activities on
the 37acres piece of land available at Galkacyo, Galmudug State Rural Area.
The groups shall be responsible to carry out the clearing of the bush onto the harvesting of
produce. These activities shall commence in stages in consonance with the following schedules:
Stage (I)
-
Clearing & burning of bush
-
February / March
Stage (II)
-
Preparation of soil for planting
-
April / May
Stage (III)
-
Planting
-
May
Stage (IV)
-
Maintenance
-
June – September
Stage (V)
-
Harvest
-
September-
-
Post Harvest activities
-
January
December
Stage (VI)
The Livestock farming shall be implemented on the following stages:
Stage (i)
-
Building of shed
Stage (ii)
-
Acquisition of Piglets etc.
Stage (iii)
-
Medical
Stage (iv)
-
Reproduction (breeding)
Stage (vi)
-
Slaughtering for sale
NOTE:
All proceeds of the project shall be deposited in a special account after which the total shall be
divided among participants of the project. This is because the project directly aims at poverty
alleviation among the target beneficiaries.
The Project Department of MOA shall administer the project. A Project Officer assisted by a
corps of experienced field workers heads the department. The Project Officer shall submit
monthly reports to the Executive of MOA through the secretary. The Executive shall summon
the project Officer to make specifications and clarifications.
The Board of Trustees of YEDEM known as the Advisory Committee shall monitor and
evaluate the project on a bi-monthly basis and make adequate recommendations and
suggestions to the executive for onward transfer to the project department.
In addition, the executive together with representatives of the youth groups from which
participants are mobilized shall from time to time meet regularly in consultation with regards
policy formulation and implementation.
THE PROJECT ESTIMATE
(A)
FARMING
(i)
SWAMPLAND RICE CULTIVATION
NO.
ITEM REQUIRED
QTY
1.
Rice Seed
40 bushel
2.
Hoe
3.
Shovel
UNIT COST
TOTAL COST
10,000
400,000.00
10
3,000
30,000.00
10
8,000
80,000.00
510,000.00
(ii)
UP-LAND RICE CULTIVATION
NO.
ITEM REQUIRED
QTY
1.
Rice Seed
40 bushes
2.
Cutlass
3.
UNIT COST
TOTAL COST
10,000
400,000.00
35
5,000
175,000.00
Hoe
10
3,000
30,000.00
4.
Shovel
10
8,000
80,000.00
5.
Rake
10
3,000
30,000.00
715,000.00
(iii)
VEGETABLE CULTIVATION
NO.
ITEM REQUIRED
QTY
UNIT COST
TOTAL COST
1.
Pepper
100 pkt
2,000
200,000.00
2.
Garlic
100 pkt
2,000
200,000.00
3.
Tomatoes
100 pkt
2,000
200,000.00
4.
broad
100 pkt
2,000
200,000.00
5.
Okra
100 pkt
2,000
200,000.00
6.
Water-Melon
100 pkt
2,000
200,000.00
7.
Carrot
100 pkt
2,000
200,000.00
1,400,000.00
(iv)
OTHER VARIABLE CULTIVATION
NO.
ITEM REQUIRED
QTY
1.
Corn
100 cups
3,500
2.
Green bean
100 bundles
3,500
350,000.00
3.
Potato
100 bundles
3,000
300,000.00
4.
Sweet potatoes
5 bags
UNIT COST
50,000
TOTAL COST
350,000.00
250,000.00
1,250,000.00
(v)
EQUPMENTS FOR (III) & (IV)
NO.
ITEM REQUIRED
QTY
1.
Cutlass
35
5,000
175,000.00
2.
Rake
35
3,000
105,000.00
3.
Hoe
35
3,000
105,000.00
4.
Shovel
35
8,000
280,000.00
5.
Wheel Barrow
5
55,000
275,000.00
6.
Basket
40
1,500
60,000.00
7.
Watering Can
20
45,000
450,000.00
8.
Measuring Line
5 pieces
10,000
50,000.00
9.
Hand Trowel
150
5,000
750,000.00
UNIT COST
TOTAL COST
10.
Spraying
Can (Anti-Fungal)
11.
Chemical for Spray
5
5 gallons
5,000
10,000
175,000.00
50,000.00
2,500,000.00
(B)
LIVESTOCK FARMING
I.
POULTRY
a.
CONSTRUCTION OF POULTRY
NO.
ITEM REQUIRED
QTY
1.
Fence Stick
10 doz
20,000
200,000.00
2.
Nail
30 pkt
1,000
30,000.00
3.
Wire Mesh
15 bundles
20,000
300,000.00
4.
Zinc
3 bundles
200,000
600,000.00
5.
Cement
5 bags
13,000
65,000.00
6.
Board 2” x 2”
10 pieces
25,000
75,000.00
7.
Board 2” x 12”
5 pieces
12,000
60,000.00
UNIT COST
TOTAL COST
1,330,000.00
b.
ACQUIRIN CHICKS & DUCKS
NO.
ITEM REQUIRED
QTY
1.
English Chicks
10 pair
5,000
50,000.00
2.
Local Chicks
10 pair
5,000
70,000.00
3.
Ducklings
10 pair
5,000
60,000.00
UNIT COST
TOTAL COST
180,000.00
c.
FEEDING & MEDICAL
NO.
ITEM REQUIRED
QTY
1.
-
Feeding for 1 year
UNIT COST
-
TOTAL COST
2,000,000.00
2.
Medication
-
-
1,000,000.00
3,000,000.00
II.
ANIMAL HUSBANDARY (GOAT & SHEEP)
a.
CONSTRUCTION OF SHED
NO.
ITEM REQUIRED
QTY
1.
Fence Stick
10 doz
20,000
200,000.00
2.
Nail
30 pkt
1,000
30,000.00
3.
Wire Mesh
15 bundles
20,000
300,000.00
4.
Zinc
5 bundles
200,000
1,000,000.00
5.
Cement
10 bags
13,000
130,000.00
6.
Board 2” x 2”
5 pieces
12,000
60,000.00
7.
Board 2” x 12”
5 pieces
12,000
60,000.00
UNIT COST
TOTAL COST
1,780,000.00
b.
ACQUIRING LAMB & GOAT
NO.
ITEM REQUIRED
QTY
1.
Lamb
15 pair
90,000
2.
Goat
15 pair
90,000
UNIT COST
TOTAL COST
300,000.00
300,000.00
660,000.00
c.
FEEDING & MEDICAL
NO.
ITEM REQUIRED
QTY
1.
Feeding for 1 year
-
-
2,000,000.00
2.
Medical
-
-
1,000,000.00
UNIT COST
TOTAL COST
3,000,000.00
F.
PERSONNEL
Project Manager1
36 months
500,000
9,000,000.00
Project Coordinator1 36 months
400,000
7,200,000.00
Secretary1
36 months
200,000
3,600,000.00
Janitor 1
36 months
100,000
1,800,000.00
200,000
3,600,000.00
Miscellaneous
25,200,000.00
GRAND TOTAL = USD $41,525,000.00
Total cost of farming
$ 6,375,000
Total cost of livestock and poultry
$ 9,950,000
Total cost for personnel
$ 25,200,000
Grand Total cost for the project
$ 41,525,000
CONCLUSION
This project will be first ever implemented in Somalia, if it completed successful as it planned.
The project will create more jobs and decrease unemployment to the youth there will be new
markets. The project will be more beneficial not only Galmudug but also other States and
districts near to Galmudug. Implementing this project will encourage implementing other
projects like this one and it will be the starting of new beneficial projects.
Ifrah Abdulkadir Hussein
Minister
Signature_______________________
From: Hassan Ali Kheyre
Prime minister of Somali
March1, 2019
To: Ifrah Abdulkadir Hussein
Minister of agriculture and irrigation
Mogadishu, Somalia
SUBJECT: APPROVAL LETTER
Dear Ifrah Abdulkadir Hussein
Thank you for taking the time to propose this project for agricultural development and
Sustainability intended to people who live in Galmudug State.
After carefully considering your plans, I am pleased to share that I have decided to approve
your proposal. I believe that it will be mutually beneficial for people who live there from
obtaining food and nutrition security. Please feel free to contact my office concerns regarding
the implementation of your plan. Otherwise, you may begin work immediately.
Again, thank you for taking the time to make this proposal, and I look forward to reviewing the
project’s results.
Sincerely,
Hassan Ali Kheyre
Prime minister ________________
Ministry of Agriculture and Irrigation Federal Government of Somalia
Mogadishu, Somalia
+252618309167
SUBJECT: CALL FOR FINANCING
February 28, 2019
Razan Commercial Bank
Mogadishu-Somalia
Dear sir/madam
We are Ministry of agriculture and irrigation, one of the primary ministries of government of
Somalia. Our ministry plans to do large project which is valuable to people who live in
Galkacyo, Galmudug State and near districts because these areas has scarce of agricultural
sustainability. This project contributes to help youths without basic or no education at all
acquire vocational and practical skills or engage in productive income generating activities
to make them self-reliant and responsible and also contribute to poverty reduction. As people
who live there get job due to this project, it will decrease people who migrates these regions
due to lack of good living standard. Our project is all about agricultural development and
sustainability. it will take place Galkacyo, Galmudug State. Our project will mainly consist
of livestock farming such as poultry and animal husbandry and farming like crops,
vegetables etc.
MOA&I application for fulfilling this project which will be the solution for people who die as
of poverty, although our country has good resources but most of people do not know how to
utilize these resources effectively. Being success for this project will improve people’s lives
and their demands.

This project has the following condition:

Estimated cost of $41,525,000.00

Duration of 3 years

Rate of 5% annually

($15,917,916.67) Installment of payment at the end of every year, beginning from at
The End of this project.
MOA&I hope from Razan Commercial Bank to participate this project and we are thanking in
advance as soon as possible we would like to hear from you a replay regarding with your
capacity to fulfill this project and whether you have other terms and conditions about this
project.
Your consideration about this project is highly appreciated.
Ifrah Abdulkadir Hussein
Minister
Signature________________
RAZAN COMMERCIAL BANK
MINISTARY OF AGRICULTURE AND IRRIGATION
MEMORANDUM OF AGREEMENT
BETWEEN
RAZAN COMMERCIAL BANK (RCB)
And
Ministry of Agriculture and Irrigation Federal Government of
Somalia
Related to
AGRICULTURE FOR SUSTAINABLEDEVELOPMENT PROJECT IN
SOUTH-CENTRAL REGIONS OF SOMALIA ESPECIALLY
GALMUDUG
March14, 2019
This agreement is made between:
 Razan Commercial Bank that is registered or licensed the Central Bank of Somalia.
 Ministry of Agriculture and Irrigation Federal Government of Somalia.
Hereinafter referred to as “parties” and independently as a “party” hereby entered into
agreement of the operative date and upon the terms and conditions set forth hereof.
1. STATEMENT
 Razan Commercial Bank is Islamic institution that act as financial intermediation in
Somalia.
 The Ministry is representative of the Federal Government of Somalia.
 Razan Commercial Bank is focused for financing long-term projects and short-term
projects, such as investment projects, Agricultural projects and so on.
 The Ministry has the power and authority to allow, livestock farming and farming and
it also make improvement to the development of Somali resources including
Agriculture for Sustainable Development of South-central regions of Somalia.
 Parties have agreed their abilities are complementary under agreement and will allow
the Parties to combine their respective abilities and requirements the exclusive right to
develop and manage the Agriculture for Sustainable Development of south-central
regions of Somalia.
2. DURATION
 This agreement will come into strength with effect from the signing date, and will
continue for the period of 3 years.
 Upon expiration of the agreement period, parties may negotiate, agree and expand the
period of contractual agreement.
3. CONDITIONS AND OBLIGATIONS
These duties must fulfill, contract parties
 The Razan Commercial Bank and The Ministry of Agriculture and Irrigation
have executed this Agreement.
 The contract has been validly created, perfected and is subsisting in terms of this
Agreement.
 To place security deposit or advance payment as control measure to confirm your
commitment.
 You have the option to pay either profit only or full payment that includes profit
and principal during the tenor of the facility.
 You must ensure the terms and conditions in all legal documentations
 You must settle the financing amount in full upon expiration tenure unless the
investment is expanded.
4. REQUIREMENT OF THE CONTRACT
1. Mode of the contract: Istisna.’
2. The profit amount will be $2,076,250.00.
3. Payment period will be 3 years and it is the Payback period will start at the end
of the project.
4. Installment payment will be per year, for the end of every year.
5. Total financing: $41,525,000.00.
6. Currency: US dollar.
5. PENALTIES YOU MEET IF YOU FAIL TO FULFILL THE OBLIGATIONS
When any amount is required to be paid by the ministry and is not paid by thespecified date,
the ministry hereby undertakes to pay directly to the compensation (Ta’widh), constituted by
bank, a sum calculated 1%per annual overdue installments until date of full payment.
6. Assignment
The ministry of Agriculture and Irrigation shall not assign or transfer any of its rights or
obligations under this Agreement without the written consent of the bank. The Razan
Commercial Bank may assign all or any part of its rights or transfer all or any part of its
obligations under this Agreement to any Institution, financial institution or other person.
7. Confidentiality
All information, data, and documents and papers exchanged between The Razan Commercial
Bank and The Ministry of Agriculture and Irrigation of Agriculture and Irrigation in relation to
the preparation, negotiation and execution of this agreement will be treated in strict confidential
and neither party shall copy, use disclose to, or enable third party use, copy, or have access
information, technology or at disposal either of the parties by the other parties for the period of
this agreement thereafter
8. Termination

A contract may be executed for a period mutually agreed between The Ministry of
Agriculture and Irrigation and The Razan Commercial Bank.

Either party may terminate this agreement by giving reasonable reasons and shall
give not less than (90) ninety days writing notice to the other party.
9. Entire Agreement
This agreement constitutes the entire agreement between the parties and any amendment or
variation to this agreement shall be made in writing and shall be valid only when signed by the
duly authorized representatives of both parties
Your feedback and negotiations are highly appreciated.
Razan Commercial Bank
MOA&I
Zahra Saeed Geedi
Salman Sharif Abdulle
Director General
Director General
Sign: __________________
Sig: __________________
________________________________________________________________________________
RefXLASEI/70/019
Date: 17/03/201
SUBJECT: TO WHOM ITMAYCONCERN
I, Dr. Mohamed Abdullahi Hussein Abdulle, who has Insaani Law Firm at Mogadishu,
confirmed the contract between RAZAN COMMER CIALBANK and MINISTARY OF
AGRICULTUREANDIRRIGATION is legally valid and applicable to the Somali law and
sharia.
Therefore, the agreement between the parts above mentioned is valid
Anyone who are breached the contract between the parts above-mentioned must be paid
COMPENSATION.
Insaani Law Firm
Dr. Mohamed Abdullahi Hussein Abdulle
________________________________________
Office Suuqbacaad Mogadishu-Somalia
Emailinsaani39@gmail.com
Tell+252617206639
SOMALI
AGRICULTURAL
DEVELOPMENT
COMPANY
‫الشركة الصومالية‬
‫للتنمية الزراعية‬
S.A.D.C
PROJECT HANDOVER
We are honored that we have worked on this project and we are honored that you approached us in the
first place. We can now concur that we are the company that wished to work with because of our
consistency, transparency and honesty in our work efforts.
We can finally say that the project reached its destination, and we are ready to handover the project so
that you give it to the original owners (government).
The project (agriculture for sustainable development) is ready to us and we can assure you it is more
likely that it will generate profit and it will be benefited by the society in Galmudug State especially
those in Galkacyo district. Moreover, we are happy that we created an opportunity for so many people
who in the future will get jobs form this project.
It took many years (there years to be precise) to build and develop such a project like this. In fact, it was
not easy but your cooperation and our great effort, we finally succeeded.
We hope you are satisfied with the work we have done for you and our company sends its deepest
gratitude.
SADC
Chief Executive Officer
Isse Sharid Mohamud
Agreement
Between
Ministry of Agriculture and irrigation
Federal Government Somalia
And
Ana’am Livestock and Agricultural
Products
Related to:
Operate the Project for a Period and To Recover the
Initial Costs of the Project
INTRODUCTION
The Ministry of Agriculture and Irrigation Federal Government Somalia (MOA&I), is
one of the primary ministries of government of Somalia responsible for designing,
implementing, and managing all government activities within the agricultural. MOAAI
facilitates and supports the development of sustainable, diversified and competitive agricultural
sector that assures food and nutrition security, contributes to job creation and maximizes the
sector’s contribution to GDP and contribute to poverty reduction. Agriculture plays a
fundamental role in fulfilling many of humanity’s basic needs: food, feed and energy. To
support growers and those who take care of our environment MOA&I develops innovative
solutions for farming so that we can effectively contribute to improving for people’s lives and
their demands.
Ana’ am Livestock and Agricultural Products (AL&AP), a company that exports
agricultural products within the country established 2010, the company’s head office is in
Galkacyo-Hobyo at Foorilow road.
Agreement
This agreement is between:

Ana’ am Livestock and Agricultural Products (AL&AP)

The Ministry of Agriculture and Irrigation Federal Government Somalia (MOA&I)
Hereinafter collectively referred as the “parties” and individually as a “party” hereby entered
into agreement of the effective date and upon the terms and conditions set forth hereof.
1. Statement
a. Ana’ am Livestock and Agricultural Products; and will act in Somalia as
AL&AP LLC.
b. The MINISTRY is representative of the Somali Federal Government;
c. Ana’ am Livestock and Agricultural Products (AL&AP) is specialized in
exporting agricultural products such livestock, poultry, crops and so on.
d. The MISTRY has the power and authority to permit, and make improvement to
the development of Somali Agriculture including implementation of
Agricultural projects of South-central regions of Somalia.
e. PARTIES have agreed their capabilities are complementary under agreement
and will enable the PARTIES to combine their respective capabilities and
requirements for the exclusive right to improve and manage the implementation
Agricultural projects of south-central regions of Somalia.
2. PURPOSE OF THIS AGREEMENT
A. Scope of work for (AL&AP)
I.
Ana’ am Livestock and Agricultural Products (AL&AP) commits to effect,
improve, develop, construct and operation the actual agricultural projects in
south-central regions of Somalia.
II.
Ana’ am Livestock and Agricultural Products will be uniquely responsible to
Design, Build, Finance, Operate and Transfer agricultural projects in southcentral regions of Somalia and for the supervision, operation and maintenance
of the Project to world class standards during the term of this Agreement.
III.
Ana’ am Livestock and Agricultural Products will complete or cause
completion of the design, construction, erection, completion and development
of the Project within 3 [three] years from the Date of the Letter of Intent in
accordance with the Detailed Project Report (DPR) and Design and Drawings.
IV.
Ana’ am Livestock and Agricultural Products will make, or cause to be made,
the necessary applications to the relevant Competent Authority for all
Clearances and Approvals and following the grant of any such Clearances and
Approvals, maintain such Clearance and Approvals in full force and effect so
long as it is necessary in order to perform its obligations relating to the
implementation and operation of the Project.
B. Scope of work for MINISTRY
MINISTRY will award AL&AP an ‘exclusivity’ under the terms of this
I.
Agreement.
II.
The contract period will be for three (3 years) from the signing date.
III.
MINIATRY will provide and support AL&AP in all the necessary approval,
permits and license in order to carry out the scope set for AL&AP.
IV.
MINISTRY will provide tax exemption for a period of three years, from the
signing date of this agreement, for the services and goods and equipment
imported or purchased locally by AL&AP for the operation and the
management of the Agricultural project as stated under the terms of this
agreement, including incorporation tax.
V.
Published income Tax of the AL&AP employees are excluded from the said
tax exemption.
VI.
Repatriation guarantee of the profits under this agreement.
3. DURATION
1. This agreement shall come into force with effect from the signing date, and shall
continue for the period of 15 (fifteen) years.
2. Upon expiry of the agreement period, parties may negotiate, agree and expand
the period of contractual agreement.
4. FEES AND PAYMENTS
The fees payable will be structured into two parts: i) “initial premium fee” ii) “monthly
Earning”
a)
Initial premium fee.
I.
The initial premium fee to be paid by AL&AP in order to secure and assure
exclusive right of the agreement.
II.
A total amount of $41,525,000.00 (forty-one million five hundred twenty-five
thousand) was paid AL&AP on fifth of April 22018 as “initial premium fees”.
III.
The initial premium fee is recoverable, deductible and compensable from the
monthly Earning upon sub-clause 4-c.
IV.
In the event that MINISTRY cancels this Agreement before the contract period,
MINISTRY will refund to AL&AP the total “initial premium fee” and recorded
total investment amount with 20 days.
V.
In the event that this agreement is cancelled by AL&AP before the contract
period, MINISTRY will not refund to NIC the “initial premium fee”.
b)
Monthly Earning.
I.
AL&AP will be responsible for the accounting under international
accounting standards of profit and loss of its business with the direct
supervision of and periodic audit by MINISTRY.
II.
The each monthly accounts and the financial report will be finalized on every
25th of the following month.
III.
AL&AP shall calculate the net profit and the monthly Earning share allocated
for MINISTRY and this monthly Earning will be paid out within 7 (seven)
bank working days after the accounts closure.
IV.
PARTIES are fully committed that:
a) The first year there will not be any recovery of initial premium fee and
the monthly Earnings will pay via bank transfer to MINISTRY.
b) After the first year, the initial premium fee shall be deducted from the
monthly Earning in favor of AL&AP.
c) The first payment of monthly Earnings will be done following the first
operational month (June 2019).
V.
The “Net profit” is defined as:
a. Total revenues excluding all types of taxes and fees payable to
MINISTRY.
b. Minus all costs and expenditures of AL&AP regarding the activities
undertaken by this agreement, including amortization based on IFRS of
the investment equipment.
c. The parties agree to allocate 3% (three) of the monthly gross revenue as
accrual for insurance, in case commercial insurance policy is not
available. These accruals shall add to net profit starting the 2th year, on
yearly basis providing that there is always 2 years accrual on the yearly
accounts and also at the end of the contract period or at any early
termination case.
VI.
The PARTIES agree that the allocation of monthly Earning under this
Agreement shall be as follows:
-
MINISTRY shall earn sixty percent (60%) of the monthly Net profit.
-
AL&AP shall earn forty percent (40%) of the monthly Net profit.
5. ASSIGNMENT
None of the PARTIES will have the right to assign of any part or liabilities under this
Agreement to any other entity without prior written consent of the other PARTY.
6. CONFIDENTIALITY
a. All matters under this agreement shall be treated in strict confidential and neither
PARTY shall copy, use disclose to, or enable any third party use, copy, or have
access, information, technology or direct product thereof gained which is, or will be
placed in with, or at the disposal either of the parties by the other party for the period
of this agreement thereafter. Further, both PARTIES hereby undertake to exercise
due diligence to prevent its employees and any associated entity from making any
such disclosure.
b. Upon termination of his agreement, for whatever reason, PARTIES shall return all
confidential information and other documents, materials, drawing, designs,
specification, notes, memorandums or dates famished under this agreement.
c.
The disclosures based on the court and arbitration decisions and / or legal actions
against other PARTY will not be considered as violation of this clause 6.
7. FORCE MAJEURE
a.
For purpose of the agreement “force majeure” includes, fire, earthquake, strike,
stoppage of work, or riot, failure or diminishment of power or lack of
telecommunications or data networks or services including lack of energy not under
the control of a party, governmental or military acts or orders or restrictions, terrorist
attacks or any other causes ( whether similar or dissimilar to those listed) out of the
reasonable control of that PARTY and not caused by the negligence of the
nonperforming PARTY.
b. Either PARTY’s performance of any part of this agreement, other than payment
obligation, shall be excused to the extent that is hindered, delayed or otherwise made
impractical force majeure.
8. TERMINATION
Either PARTY may terminate this agreement by giving reasonable reasons and shall
give not less than (90) ninety days writing notice to the other PARTY.
9. NOTICES AND DOMICILIA
Any notices or communication to be gives under or in connection with this Agreement
shall be in writing and shall be sent properly and promptly by email or courier to:
Ana’am Livestock and Agricultural Products
Address: Foorilow road.
Tel: +252618643119
Email: AL&AP@gmail.com
Ministry of Agriculture and Irrigation Federal Government Somalia
Address: Mogadishu-Somalia
Tel: +252618309167
Email: Mo.gov.so.b@gmail.com
10. SEVERABILITY
To the extent that any of the clauses of this agreement are void or unenforceable, the
same shall not affect the remaining articles of this agreement as far as the same are
independent of those void or unenforceable terms.
11. ENTIRE AGREEMENT
This agreement constitutes the entire agreement between the parties and any
amendment or variation to this agreement shall be made in writing and shall be valid
only when signed by the duly authorized representatives of both parties.
12. GOVERNING LAW AND JURISDICTION
This Agreement is governed by and construed and interpreted in accordance with rules
of international chamber of commerce Arbitration (ICC, Paris).
13. COSTS
Each PARTY shall its own cost of negotiating drafting, preparing and implementing
this Agreement.
IN WITNESS whereof the present Agreement has been signed in (2) two originals and both
parties received (1) one, having initialed every page to indicate understanding herein.
Ana’ am Livestock and Agricultural Products (AL&AP),
Name: ________________________
Title: __________________________
Date: __________________________
Signature: ______________________
Ministry of Agriculture and Irrigation Federal Government Somalia
Name: _________________________
Title: ___________________________
Date: ___________________________
Signature: _______________________
COMPANY PROFILE for ANA’AM
ANA’AM is a company founded in Somalia in 2010. From the beginning, its activity focused
on the development and production of modern preparations for agriculture. Currently the
company is one of the biggest manufacturers of fertilizers and actively participates in the sector
of animal health products. ANA’AM has expanded its operations in Somalia.
Our ambition is to become the leading provider of the most modern solutions for farmers and
help them increase productivity, following the company's saying: "EFFECTIVENESS
THROUGH KNOWLEDGE."
ANA’AM's mission is to promote solutions for increasing the efficiency of agricultural
production while caring for the environment and food safety. For this purpose, we cooperate
with renowned research and scientific centers. We have also built our own research and
experimental facilities where advanced research and development activities are performed.
The inspiration for new projects are often solutions and mechanisms created by nature.
Launching new products into the market is always preceded with extensive biological studies
to confirm their effectiveness in real-life applications.
The strength of ANA’AM lies in a team of experienced experts who support our customers and
partners with their knowledge and experience.
ANA’AM's objective is a long-term development, so it is important for us to invest in research
and development. Modern equipment and instruments in the laboratory and a team of
experienced, educated professionals, full of commitment and passion for the search and
discovery of new solutions, bring the astonishing results of innovative products on the market.
In addition, the production potential of the company continues to increase. Our expanded and
modernized plant is now one of the most modern in Europe among manufacturers in the
agriculture industry.
The company's primary virtue is customer satisfaction. Our customers’ growing requirements,
opinions, and suggestions are the inspiration for continuous improvement of the product range
and implementation of further innovative solutions, increasing in the profitability of
agricultural production.
We look forward to cooperating with you
Major Qualities of ANA’AM Products
•
High quality
We guarantee a stable physical form of our products and a composition consistent with the
declared content. We use the latest production technologies and follow procedures in
accordance with recommendations. Our production is based on the Quality and Environmental
Management Systems ISO 9001 and 14001, and Good Manufacturing Practices GMP +. The
raw materials used come from verified suppliers that meet quality requirements according to
ISO 9001 and 14001, as well as GMP+. Prior to production, all components are subject to strict
quality control checks.
•
High efficiency
Our products can significantly increase crop yield, improve its quality and raise the productivity
and health of animals. The effectiveness of products is confirmed experimentally and supported
by positive user feedback. Agricultural recommendations are optimized for various climate
conditions. High-concentration products allow desired effects to be achieved at low doses.
•
Innovativeness
Our products are based on unique ideas. Novel solutions are protected by patents. We offer
innovative products such as bio stimulants, anti-stress agents, bio products, specialty fertilizers,
adjuvants and animal health products. Our comprehensive technologies relating to crop farming
and animal health protection meet the requirements of professional agricultural businesses.
•
Practicability
Due to a sound knowledge of the market, we can provide a fast response to the market’s
changing needs and requirements. We pay special attention to the practicability of
recommended solutions, for example compatibility of fertilization and plant protection
programs, as well as combined use of agrochemicals. We yield positive test results for fertilizer
miscibility with commonly used pesticides. We also offer the advantage of a long shelf-life for
our products and availability of liquid and powder formulations.
•
Advisory services
A wide range of support services are provided by a team of INTERMAG advisors, including
trainings, field demonstrations, seminars and individual advice.
STRUCTURE OF THE COMPANY
The CEO
Abdirizak Mohamed Ali
The CFO
Malyun Mohamed Hassan
Sales and marketing
Zeynab Hassan Mohamud
Development Section
Ahmed Mohamud Hirsi
CONCLUSION
This report contains all the work done during the day this project started and the day this project
ended, it contains all letters and agreements as well as proposals and cost analysis, this project
started February 2019 and ends May 2019. The minutes written during this project life cycle
is attached to the file.