OFFICIAL-Djibouti in legal dispute with DP World over port concession
Wed Jul 9, 2014 7:33am GMT
(Removes reference to mid-2015 hearing date; Djibouti now says this does not
apply to DP World case)
* Djibouti says DP World offered financial incentives
* Govt launches arbitration in London
* DP World rejects accusations, vows to defend
* Djibouti's Doraleh Container Terminal is Africa's largest
By Matt Smith
DUBAI, July 8 (Reuters) - Djibouti said it had started legal action against
DP World, seeking to rescind the Dubai-owned port operator's concession in
Africa's largest container terminal in a row over how the contract was
awarded.
"The resulting agreement unfairly favoured DP World," the government said in
a statement, which questioned payments made in winning the concession in
2000.
DP World said it rejected Djibouti's allegations.
"We categorically reject the accusations and will vigorously defend our
position during arbitration," a company spokesperson told Reuters by email.
"We are disappointed that the government has chosen to take this action
after working so closely with us as partners over the past 14 years."
DP World, which has a portfolio of about 65 terminals across six continents,
owns one-third of Djibouti's Doraleh Container Terminal, the company's
annual report says.
Following the collapse of negotiations with DP World, Djibouti launched
arbitration proceedings in London.
DP World can run Doraleh while the case is pending. Neither side said when
the case was likely to be resolved.
"We have invested significantly in Djibouti over those years and have been a
major contributor to its economy and to its community," DP World said.
"It is surprising the accusations come from a government whose parliament
ratified our concession."
A former French colony, Djibouti hosts a French military base and the only
U.S. military base in Africa. Its port is used by foreign navies policing
the Gulf of Aden's shipping lanes, some of the busiest in the world, against
pirates from Somalia, which borders the country to the south.
Doraleh is Africa's largest container terminal, the government said, while
transport accounts for nearly a third of Djibouti's gross domestic product.
(Reporting by Matt Smith, editing by David Evans and Andrew Torchia)