It ruled the illegality of the company's attempts to terminate the agreement

“International Arbitration” rejects the withdrawal of the “Port of Djibouti” from its contract with “Dubai Ports”

The Court of Arbitration of the London Court of International Arbitration (LCIA) issued a judgment against the Port of Djibouti Company (Port de Djibouti SA) (PDSA), in its dispute with Dubai Ports World, establishing the illegality of its attempts to terminate the joint venture agreement and transfer the ownership of its shares to the state.

The arbitration court ruled that the Djibouti Port Company had breached the joint venture agreement by its unlawful attempt to terminate it, and by being involved in an attempt to transfer ownership of its shares to the government.

The Djibouti Port Company is 23.5% owned by China Merchants Port Holdings Company Ltd in Hong Kong, while the rest of its shares are owned by the Government of Djibouti.

The decision of the arbitration court confirmed that the joint venture agreement has not been terminated and that it is still in full force and effect. It also ruled that the Djibouti Port Company is still a shareholder in the joint venture, and that its attempt to transfer ownership of its shares to the government has no effect.

The arbitration will begin the second stage to determine the compensation owed to DP World from the Port of Djibouti Company.

The Djibouti Port Company has also been ordered to reimburse DP World's legal costs so far, amounting to 1.7 million pounds.

The new ruling is the seventh decision issued by an international court or judicial body in favor of DP World in its dispute with the government of Djibouti.

This ruling follows another ruling on July 31, 2018 by another arbitral tribunal of the London Court of International Arbitration, which held that the Doraleh Container Terminal concession agreement remained in force and binding despite the government's efforts to evade its contractual obligations.

Another ruling was issued on January 10, 2020 ordering the government to return the container terminal to DP World.

DP World reiterated that it will continue to pursue legal means to defend its rights as a shareholder and concessionaire in Doraleh Terminal.

• The judgment is the seventh from an international court or judicial body in favor of DP World.

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