MOGADISHU (Halbeeg News) – The London Court of International Arbitration (LCIA) has ruled that Doraleh Container Terminal Contract between Djibouti and DP World as valid, UAE claimed on Thursday.
In February, authorities in Djibouti terminated DP World’s contract to run the terminal.
Early last Month, Dubai-based DP World commenced a legal battle with Djibouti over the termination of a contract to manage the Doraleh Container Terminal.
In a statement, the government of UAE said the London based court ruled against Djibouti’s move to cancel DP World’s contract with Djibouti government.
“The LCIA Tribunal has ruled that Doraleh Container Terminal’s Concession Agreement ‘remains valid and binding …’” Dubai’s government media office said in a statement, which did not state when the ruling was made. “DP World will now reflect on the ruling and review its options.”
Last Month, the firm insisted that its concession agreement for the Doraleh Container Terminal (DTC) remains in force, warning that the government’s seizure of the facility does not give the right to any third party to violate the terms of the concession agreement.
“DP World reserves the right to take all available legal actions, including claims for damages against any third parties that interfere or otherwise violate its contractual rights,” a DP World spokesperson said.
Despite all claims by the DP World, Djibouti mid last month disclose its plans to pay DP World compensation.
Speaking to Financial Times, Aboubaker Omar Hadi, chairman of Djibouti Ports & Free Zones Authority, said Djibouti wants to resolve the dispute over control of the city’s Doraleh container terminal by paying a compensation that could be more or less half a billion dollars.
“For us, arbitration is over, they have to sit down with us, take their money and go,” Mr. Hadi said.
Doraleh is on the Red Sea, a narrow waterway separating the east coast of Africa from the Gulf and a thoroughfare for 30 per cent of world shipping cargo.
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