London court rules DP World Djibouti contract "valid and binding"
Dubai’s government said on Thursday the London Court of
International Arbitration (LCIA) has ruled DP World’s port container terminal
contract in Djibouti was valid and binding.
The government of Djibouti seized the Doraleh Container
Terminal from DP World in February over a dispute dating back to at least 2012.
Dubai government-controlled DP World has called the seizure illegal.
“The LCIA Tribunal has ruled that Doraleh Container
Terminal’s Concession Agreement ‘remains valid and binding ...’” Dubai’s
government media office said in a statement, which did not state when the
ruling was made. “DP World will now reflect on the ruling and review its
options.”
A DP World spokesman referred to the Dubai government
statement when contacted by Reuters for comment
Djibouti officials could not be immediately reached for a
comment.
Djibouti Ports and Free Zone Authority (DPFZA) said in March
it was willing to buy out DP World’s 33 percent stake in the container terminal
to end the row with one of the world’s largest port operators. DP World denied
that such an offer had been made.
In 2017, the LCIA cleared DP World of allegations of
misconduct associated with the terminal concession awarded in 2000.