London court favors DP World in Djibouti dispute: The London Court of International Arbitration (LCIA) has ruled that the government of Djibouti acted illegally in its seizure of the Doraleh Container Terminal (DCT) from DP World in 2018, Khaleej Times reports. The decision affirms DP World’s USD 685 mn enforceable awards against the country — which the government has so far refused to honor. It also clarifies that harm was directly caused by the government — declining to award damages against its state-owned corporate port operator, the Port de Djibouti SA (PDSA).

Refresher: DP World has been embroiled in squabbling with Djibouti for seven years over the Djibouti government’s termination of its concession after claiming it unfairly favored DP World. The firm owns a 33.3% stake in DCT and had begun operating it in 2006 until the termination.

The ruling has closed DP World’s arbitration proceedings with Djibouti’s PDSA, but wider disputes with Djibouti’s government and their partner China Merchants Port Holding — amounting to a USD 1 bn claim against the parties — remain active.

Not the first ruling: The decision upholds a third partial award from the LCIA, which awarded the firm USD 200 mn for damages incurred between 23 February 2018 to 31 December 2020. A US court also backed this decision last year, awarding DP World USD 200 mn from the government of Djibouti.

Tags: