DP World Wins $200 Million Award Against Djibouti
DP World Wins $200 Million Award Against Djibouti
DP World has secured a major legal victory in its ongoing dispute with Djibouti. A US court has ordered the enforcement of a $200 million award against the Government of Djibouti. The decision marks another setback for Djibouti in its attempt to seize control of the Doraleh Container Terminal (DCT).
Legal Battle Continues
The dispute originated in 2018 when Djiboutian authorities forcibly took over the DCT, alleging unfair terms in the concession agreement. However, multiple courts have consistently ruled in favor of DP World, dismissing Djibouti’s claims.
DP World has been seeking compensation for lost dividends, breach of exclusivity, and management fees, with total damages amounting to nearly $700 million. The company has vowed to pursue legal action until the port concession is returned or full compensation is received.
The US court’s decision underscores the Djibouti government’s disregard for international law and its negative impact on investor confidence. DP World’s extensive operations in Africa, spanning 48 Sub-Saharan countries, highlight the importance of upholding legal agreements and protecting investments in the region.
The ongoing legal battle serves as a cautionary tale for investors considering business ventures in Djibouti. The country’s track record of disregarding contractual obligations poses significant risks to foreign investments.
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