The London Court of International Arbitration (LCIA) has issued its final ruling in the case between DP World and Djibouti’s government-owned Port de Djibouti SA (PDSA).
The tribunal confirmed that Djibouti’s 2018 seizure of the Doraleh Container Terminal (DCT) was unlawful. However, it declined to award damages against PDSA on the basis that the harm was caused by the Government of Djibouti, not the PDSA.
DP World said in a statement on Thursday that it had claims of about $1 billion against the government and its partner, China Merchants Port Holding, which remained active. The company said it also had existing arbitration awards of approximately $685 million against the government of Djibouti that remained “valid and enforceable”.
But it said the government had so far refused to honour the awards “in contempt for the rule of law and international business standards”.
The LCIA also confirmed that DP World’s 50-year concession agreement for Doraleh was legally valid and still binding, and the attempt to terminate it was unlawful.
“Yet, the Government continues to block DP World from exercising its rights at the terminal,” the company said.
“PDSA was awarded costs in this specific proceeding. However, earlier rulings by the LCIA found PDSA’s attempt to terminate DP World’s 2006 Joint Venture Agreement for DCT were unlawful. The net effect is that PDSA still owes DP World a substantial sum.”
The company said its wider dispute remained and that it would “pursue all available legal avenues to secure fair compensation and enforce its rights against the Government of Djibouti and China Merchants”.
“DP World has successfully invested billions across Africa and globally, creating jobs, infrastructure and growth. But this case is bigger than DP World – it is about whether governments can tear up binding contracts and ignore international law without consequence. Djibouti’s behaviour is a clear warning to serious investors,” DP World said.
