London Tribunal orders government to restore port rights to DP World or pay damages
DP World has won another legal round against the Djibouti government over the Doraleh Container Terminal. A tribunal of the London Court of International Arbitration has ordered Djibouti to restore the rights and benefits under a 2006 Concession Agreement to DP World and Doraleh Container Terminal SA within two months. Or pay damages if it doesn’t.
An independent expert had estimated losses to DP World at more than $1 billion. The ruling by the Tribunal said Djibouti had “acted illegally when it forcibly removed DP World from management of the terminal in February 2018, claimed it had terminated the Concession Agreement and transferred the Terminal assets to a state-owned entity,” the vedict states.
The latest tribunal ruling is the sixth substantive ruling in DP World’s favour in the London Court of International Arbitration and the High Court of England and Wales.
To date all have been ignored by Djibouti despite the original contract for the concession being written under and governed by English law.
The Doraleh Container Terminal is the largest employer and biggest source of revenue in the country and has operated at a profit every year since it opened.
DP World now awaits a proposal from Djibouti about how it intends to comply with the latest legal ruling. If Djibouti does not comply with the ruling, the Tribunal has stated it will proceed to issue an award of damages.
DP World has won another legal round against the Djibouti government over the Doraleh Container Terminal. A tribunal of the London Court of International Arbitration has ordered Djibouti to restore the rights and benefits under a 2006 Concession Agreement to DP World and Doraleh Container Terminal SA within two months. Or pay damages if it doesn’t.
An independent expert had estimated losses to DP World at more than $1 billion. The ruling by the Tribunal said Djibouti had “acted illegally when it forcibly removed DP World from management of the terminal in February 2018, claimed it had terminated the Concession Agreement and transferred the Terminal assets to a state-owned entity,” the vedict states.
The latest tribunal ruling is the sixth substantive ruling in DP World’s favour in the London Court of International Arbitration and the High Court of England and Wales.
To date all have been ignored by Djibouti despite the original contract for the concession being written under and governed by English law.
The Doraleh Container Terminal is the largest employer and biggest source of revenue in the country and has operated at a profit every year since it opened.
DP World now awaits a proposal from Djibouti about how it intends to comply with the latest legal ruling. If Djibouti does not comply with the ruling, the Tribunal has stated it will proceed to issue an award of damages.
