Djibouti ends contract with Dubai’s DP World over ‘illegal’ payments

Jebel Ali Port, managed by DP World in Dubai, United Arab Emirates, May 10, 2007

Djibouti announced on Thursday that it is “unilaterally” terminating a large contract with Dubai’s DP World over alleged “illegal” payments. The announcement was made by the office of President Ismail Omar Guelleh and the decision has been taken “with immediate effect.”

The Horn of Africa state has accused DP World of making illegal payments to secure a 50-year concession for its Doraleh Container Terminal.

According to Reuters, DP World called the move an “illegal seizure” of the terminal. The ports company revealed that it has started arbitration proceedings at the London Court of International Arbitration. The court has apparently reviewed previous claims related to the dispute.

DP World is “demanding” that the government of Djibouti puts an end to its “unlawful conduct” and continues to work as partners with the Dubai-owned company.