United Arab Emirates port management company DP World won further arbitration before a court in the London Court of International Arbitration, which ruled compensation of more than $200 million in favor of the Emirates company for the non-exploitation of facilities at the Doraleh cargo terminal from February 18, 2018 to December 31, 2020.
The court also ruled that the concession agreements signed in 2006 between the government of Djibouti and DP World remain valid and binding.
The award of damages in favor of DP World once again enshrines the reasons of the UAE company, which had suffered in February 2018 the seizure of the terminal by local authorities in the aftermath of political tensions between the two countries. The damages now awarded by the English court include DP World’s lost dividends, management fees and interest, in the amount of approximately US$165 million, as well as compensation for cash balances illegally taken by the Djibouti government from the Doraleh Container Terminal, in the amount of approximately US$36 million.
The January 24 ruling is just the latest in a series of numerous rulings by the LCIA and the High Court of England and Wales over the past four years, all in favor of DP World. To date, all have been ignored by Djibouti despite the concession remaining valid and in force under English law. With the effect of this latest ruling that Djibouti’s illegal actions are accruing liability for damages in excess of $54 million annually, DP World remains optimistic that Djibouti will recognize that it must meet its legal obligations.
