Djibouti rejects an international court ruling over Doraleh

Djibouti (SD) – The government of Djibouti has rejected the LCIA court ruling this week to reimburse and hand Doraleh over back to DP World. 

The LCIA court ruled that Djibouti had breached the Law when it ousted DP World and took control of the port terminal last February. 

Djiboutian government said in a response statement released today, said that it would not adhere to the court’s decision. 

“This ruling comes as no surprise. It is merely the outcome of the iniquitous provisions of the concession, which could force a sovereign state to set aside and disregard its own national law, in order to revive a concession that was terminated on the grounds of the higher interest of the Djiboutian nation, and for the exclusive benefit of a foreign-owned company.” Djibouti said in a statement released today. 

The Djiboutian government has blamed DP World for its failure, agreements with regional ports and poor governance. 

The Djiboutian government said in a statement that it was willing to pay DP World compensation but wouldn’t agree to allow DP World to operate the port terminal. 

“As the Republic of Djibouti has consistently indicated since the termination of the concession, the only possible outcome is allocation of fair compensation in accordance with international law. 

 The Djiboutian government did not attend the court while it deliberated its decision on the case. 

The Djiboutian government has handed over the port terminal to China Merchants Port Holdings for $ 3.5bn. 

DP World has now sued China Merchants Port Holdings, accusing it of encouraging Djibouti to break the DP World agreement. 

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