World News

FT / DP World accuses Djibouti of illegally seizing container terminal

Posted by: Semere Asmelash

Date: Friday, 23 February 2018


 DP World accuses Djibouti of illegally seizing container terminal


Simeon Kerr in Dubai and John Aglionby in Nairobi  February 23 , 2018

Dubai ports operator DP World said Djibouti had illegally seized control of the Doraleh container terminal in the east African state, describing it as “an oppressive and cynical” move in the government’s campaign to force a renegotiation of a contract in force since 2004.

DP World in a statement on Friday said it had opened arbitration proceedings in London to secure damages for the “expropriation” of the terminal's assets. The Dubai firm said an earlier London arbitration had found the terms of the concession to be “fair and reasonable.” 

The statement said the government made a final demand for the concession’s renegotiation on Wednesday, terminating the deal by presidential decree on Thursday. 

The operational status of the port, the largest employer and biggest source of revenue in Djibouti, remains unclear. 

Djibouti had failed to end the contract by alleging corruption in the deal when UK legal proceedings dismissed claims that the 14-year-old contract was unfair, the company said.

DP World, which has a 33 per cent stake in the port, called for the government to resume cooperation. It said there would be no financial impact on the group, which operates 78 terminals across six continents.

Djibouti said in a statement on Friday it terminated the contract with immediate effect because the “Doraleh Container Terminal (DCT) concession agreement contains elements in flagrant violation of the sovereignty of the state and the best interests of the nation”. It did not give details of the alleged violations.

Djibouti enacted a law last November on strategic infrastructure contracts which it said on Friday allows for the renegotiation and termination of concluded contracts related to the “management or operation of strategic infrastructure”.

It added: “Good faith attempts by the government… to reach a negotiated solution or to resolve the issue amicably have been rejected without reason by the management of DP World”.

The latest attempt was on February 1, the government said, but this was allegedly answered only by a letter from DCT that it was initiating arbitration proceedings.

“Normal compensation procedures” would be paid as a result of the contract termination, the government said.

(This post has been updated with comments from the Djibouti government.)







6ይ ክፋል: ማዕበል ስርሒት ፈንቅል - የካቲት 1990 - ሰነዳዊት ፊልም| sirihit fenkil 1990 - part 6 - ERi-TV Documentary

Dehai Events