Country insights

Energy Contract Management in Somalia: Avoiding Claims and Delays

How teams in Somalia can deliver US$2.1 billion of World Bank projects on time: the problems to address before work starts, and practical help.

Risalat Consultants International
9 November 2026 · 3 min read
Energy Contract Management in Somalia: Avoiding Claims and Delays3 min read

Key takeaways

  • Somalia has 32 active World Bank projects worth about US$2.1 billion.
  • Most delays and extra costs start before the first contract. land, designs, procurement plans, safeguards and team readiness.
  • A short readiness check at the start saves months later.
  • Teams that plan, procure and manage contracts well disburse on time and keep their results.

Introduction

Governments in Somalia are implementing a large portfolio of World Bank financed projects.⁣​‌​‌​​‌​​‌‌​‌‌​​​‌‌‌​‌‌​​‌‌​‌​‌​​​‌​‌‌‌​​​‌‌​​​‌​‌‌‌‌​​​​‌‌​‌‌​​⁣ The money is committed; the challenge is to turn it into results on time and within budget. This article looks at the portfolio, the problems that usually slow projects of these kinds, and what project teams can do before work starts.

What the money is for

The largest active projects are listed below, from the World Bank’s public project records.

ProjectApprovedWorld Bank financingSector
Somali Electricity Sector Recovery Project2021US$150.0mEnergy Transmission and Distribution, Renewable Energy Solar
Second Additional Financing for the Shock Responsive Safety Net for Human Capital Project2022US$143.0mSocial Protection
Somalia Crisis Recovery Project2020US$137.5mPublic Administration – Social Protection, Social Protection
Somalia Urban Resilience Project II2019US$133.5mSub-National Government
Shock Responsive Safety Net for Human Capital Project Additional Financing2021US$110.0mSocial Protection, Public Administration – Social Protection
Somalia Shock Responsive Safety Net for Human Capital Project Third Additional Financing2023US$100.0mSocial Protection
Accelerating Sustainable and Clean Energy Access Transformation in SOMALIA2023US$100.0m
Improving Healthcare Services in Somalia Project (“Damal Caafimaad”)2021US$100.0mHealth, Public Administration – Health

Energy and power: what usually goes wrong, and how to prevent it

  • Land, wayleave and permits not secured before contracts start. A readiness check of land, permits and designs before procurement; one owner per item with dates.
  • Procurement of complex supply-and-install contracts takes longer than planned. Realistic procurement timelines, early market sounding and trained evaluation committees.
  • Utility finances and tariffs make new assets hard to operate. Operating cost and tariff analysis at design stage; asset management plans from day one.

Water, sanitation and irrigation: what usually goes wrong, and how to prevent it

  • Designs do not reflect site conditions and are changed during works. Design reviews and site verification before tender; a change control procedure.
  • Schemes are built but not maintained by the users or the utility. User or utility agreements, tariffs and maintenance plans prepared with the works.
  • Environmental and social issues stop works. E&S instruments ready and staffed before contractors mobilise; working grievance mechanism.

Transport and urban infrastructure: what usually goes wrong, and how to prevent it

  • Resettlement and utility relocation delay the start of works. Resettlement plans and relocation agreed and funded before contract award.
  • Contract variations and claims raise costs. Strong contract management: named contract managers, monthly reports, variation control.
  • Weak supervision leads to defects. Clear supervision roles, quality plans and independent checks at key stages.

Health and nutrition: what usually goes wrong, and how to prevent it

  • Supplies and equipment arrive before facilities or staff are ready. Sequenced plans that link procurement, works, staffing and training.
  • Results are hard to verify. A results framework with verifiable indicators and simple data routines.
  • Facilities lack maintenance and running budgets. Maintenance plans and budget lines agreed with the ministry early.

A readiness check before the first contract

  • Designs, land and permits ready for the first contracts.
  • A realistic procurement plan with trained evaluation committees.
  • Environmental and social instruments approved and staffed.
  • Financial management, disbursement and audit arrangements tested.
  • A results framework the team can actually report on.
  • A project unit with the people, authority and tools to decide quickly.

How Risalat can help

Risalat works with ministries and project teams on exactly these points, openly showing its method:

Programmes for teams from Somalia:

To discuss support for a specific project, ask for a proposal.

Source of project data: World Bank project records (projects.worldbank.org), read November 2026.

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