BY TESFANEWS
A London Court of International Arbitration has ordered Djibouti government to pay $385 million plus interest in compensation to UAE global ports operator DP World for unilaterally breaching a 50-year concession contract over the Doraleh Container Terminal.
Djibouti government owns a two-thirds stake in Doraleh Container Terminal before it nationalized the joint venture and scrapped the concession agreement.
The ruling states that the 2006 concession remains valid despite the government of Djibouti’s taking over the terminal in February after cancelling DP World’s operating rights the previous year.
The ruling also gave DP World the right to claim further possible damages if Djibouti goes ahead with plans to develop the container port with any other operator, the statement said.
The port was designed and developed by DP World and has been the gateway for much of the container trade across the Horn of Africa, playing a crucial role in Ethiopia’s import and export.
DP World operates some 80 terminals and logistics centers in around 40 countries and is involved in scores of terminal development projects.
The Dubai government said DP World is engaged in another legal battle with Djibouti over a free trade zone in the same area.
It said that China Merchants Co. operates the $3.5 billion free trade zone that DP World had developed under an agreement with Djibouti.
The London arbitration panel also gave DP World authority to seek compensation over the Hong Kong-listed China Merchants’ company.
China Merchants Co. operates the $3.5 billion free trade zone that DP World had developed under an agreement with Djibouti.
