Court rules in favour of DP World in Djibouti port dispute

The arbitration claim was initiated by Djibouti in 2014, claiming that DP World had made illegal payments to the head of the country’s port and free zone authority to secure a commission to operate the country’s Doraleh Container Terminal.

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A London-based arbitration panel has found in favour of DP World in a long-running dispute with the government of Djibouti, over a port concession awarded to the company in 2014, the Dubai Government said on Tuesday.

The arbitration claim was initiated by Djibouti in 2014, claiming that DP World had made illegal payments to Abdourahman Boreh, the head of the country’s port and free zone authority, to secure a commission to operate the country’s Doraleh Container Terminal.

The tribunal, consisting of Lord Leonard Hoffmann, Sir Richard Aikens and Peter Leaver QC, dismissed Djibouti’s claims in its partial final award made on Tuesday, holding Djibouti liable to pay all legal costs.

Arbitrations cannot be appealed apart from in extraordinary circumstances such as fraud and other inappropriate actions taken by an arbitrator.

The conclusion of the arbitration claim comes nearly a year after a London court dismissed charges brought by Djibouti in 2012 against Mr Boreh, who is now based in Dubai, accusing him of taking illegal payments.

Djibouti sought to rescind DP World’s concession in July 2014 after Dubai refused to extradite Mr Boreh. However, the company continued to operate the terminal during the ongoing legal proceedings.

A spokeswoman for DP World declined to comment.

The port operator’s shares, listed on the Nasdaq Dubai, closed up 2 per cent at US$20.70 on Tuesday, ahead of the arbitration announcement.

jeverington@thenational.ae

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