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UK court: Djibouti cannot end contract with UAE ports company

September 6, 2018 at 12:37 pm

DP World in Dubai, United Arab Emirates, [Facebook]

The London Court of International Arbitration has ruled that the Government of Djibouti cannot terminate its agreement with the Dubai-based DP World over the control of the Doraleh Container Terminal.

DP World said in a press statement that the court’s decision comes after Djibouti attempted to terminate its agreement with the UAE company and replace DP World’s staff at the container terminal.

Last February Djibouti announced that it is “unilaterally” terminating a large contract with Dubai’s DP World over alleged “illegal” payments. Adding that the decision had been taken “with immediate effect”.

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The government had accused DP World of bribing the head of the country’s port and free zone authority, Abdourahman Boreh, to secure a commission to operate the container terminal. A UK court cleared him of all charges in 2016.

Built by DP World, the Doraleh Container Terminal was opened in 2009 and is the largest in Africa.