The new sentence pronounced in the conflict between the Dubai Port World group and the State of Djibouti on the termination of the concession contract for the Doraleh container terminal is not likely to calm the fervor between the two parties whose positions do not are still not reconcilable.
In a press release titled “Only a fair compensation and in accordance with international law is possible” and published Thursday, January 16 by African Media Agency on behalf of the Presidency of the Republic of Djibouti, the latter declares this decision not surprising “d ‘a sole arbitrator ruling under the aegis of the London Court of International Arbitration’, rendered on 10 January 2020.
The London International Arbitration Tribunal ordered Djibouti to restore rights and benefits under the 2006 concession agreement signed with DP World and Doraleh Container Terminal SA within two months, or pay damages. According to the award, Djibouti acted illegally by terminating his contract with DP World in February 2018.
This decision, according to the Djiboutian authorities, “is only the consequence of the unfair stipulations of the concession, which would oblige a sovereign State to override its national law, to revive the concession terminated for reasons concerning the best interests of the nation for the exclusive benefit of a foreign company ”. The Republic of Djibouti “cannot in any case accept such a decision, rendered in a procedure in which it did not participate and which flouts the rules of international law”, they add.
Furthermore, the Presidency stresses that it “reaffirms its constant position since February 2018” in this conflict with the ex-partner.
“The termination of the concession for the Doraleh container terminal, which had been awarded in 2006 to the company DCT (Doraleh Container Terminal), a joint company established between the International Autonomous Port of Djibouti and DP World, was decided in a legislative framework previously voted by the Djiboutian parliament on November 8, 2017, “she insists, adding that the operation of the terminal through the group” had proven to be contrary to the fundamental interests of the Nation “.
However, specifies the Presidency, the Djiboutian State “remains, today as yesterday, ready to negotiate the conditions of a solution satisfactory for all the parties”, but “cannot accept arbitrary ‘convictions’ ignoring the interests of the country and so-called ‘independent’ expertise which can in no way serve as a financial ‘basis’ for an agreement between the parties.
This is not the first time that an award has been made in favor of DP World in this case.
In April 2019, a London international arbitration tribunal ordered Djibouti to pay US $ 385 million in compensation to the UAE port operator. On July 31, the Tribunal confirmed “the illegality of the Djibouti Government’s forced takeover of the terminal”.
“The execution of this concession contract had proved contrary to the fundamental interests of the Republic of Djibouti. The continuation of this contract seriously prejudiced the country’s development imperatives and the control of its most strategic infrastructure, ”Djibouti has justified itself since February 22, 2018, the date on which the government terminated the concession contract awarded to DP World. in 2006 for a period of 30 years on the port terminal.
According to the Djibouti presidency, the activity of the port has increased by 30% since the end of the concession.
