Djibouti government on Wednesday announced that Doraleh Container Terminal will be under its control barely three weeks after concession agreement with DP World was terminated.
Djibouti’s Inspector General Issa Sultan, who oversees infrastructure for President Ismail Omar Guelleh has ruled out any imminent agreement of the port with another country.
“The port would remain in the hands of our nation as the government seeks new investors,” said Sultan in an interview with Reuters.
The IG dismissed reports claiming that the port would be handed over to China which is US antagonist, in a move to pacify Washington following US legislators’ fear over China’s involvement in the port deal.
“There is no China option and no secret plan for the Doraleh Container Terminal, the port is now 100 percent managed by the state,” he assured.
In February, Djibouti president, Ismail Omar Guelleh ended his country’s contract with Dubai’s DP World, a move the company termed illegal.
“The Republic of Djibouti has decided to proceed with the unilateral termination with immediate effect of the concession contract awarded to DP World,” the statement from the office of the President Guelleh said.
President Guelleh said the officials of DP World failed to resolve a long-running dispute between Djibouti and the company.
In 2014, the government of Djibouti launched a suit case against DP World saying the company paid illegal money to Abdourahman Boreh, the former head of the nation’s port authority in order to secure the 50-year concession for the port.
The government of Djibouti inked an agreement with DP World for a 30-year concession agreement to operate the terminal in 2006.
Discussion about this post