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Djibouti - DP World : A contract termination in accordance with the law

24/02/2018
00:00

On Thursday, February 22, 2018, the Djiboutian government puts an end to the contract that bound it to Dubai Port World. The Inspector General of the State, Mr. Hassan Issa Sultan, who spoke on this decision of the government "to proceed to the unilateral termination of the contract of concession of Doraleh DCT DP World", declares this act "in accordance to the law of November 8, 2017 ". (Source ADI)  

In a press conference held Saturday, February 24 at the Sheraton Hotel, Mr. Hassan Issa Sultan, Inspector General of the State, wanted to clarify from the outset that "the decision of the Government of Djibouti to proceed to the unilateral termination of the concession contract Doraleh's DCT to DP World complies with the law of November 8, 2017 ".

According to him, the termination of the concession contract with DP World has the immediate effect of transferring the entire social patrimony, the contracts and the personnel necessary for the operation to the management company of the Doraleh container terminal. Doraleh Container Terminal, except for the management contract dated December 6, 2007.

Mr. Hassan Issa Sultan explained at the same time that the concession contract was contrary to the fundamental interests of the nation in that it conferred on DP World only the right to develop a new port.

"Because of this concession, the Republic of Djibouti did not have the right to build the Port of Doraleh Multipurpose (DMP), nor the port of Tadjourah, nor the port of Goubet, nor the future ports of the zone of Damerjog" he pointed out.

"The Republic of Djibouti also did not have the right to unload containers outside the Doraleh DCT and had to dismantle the container terminal at the old port," he added.

Mr. Hassan Issa Sultan said that DP World has lodged complaints in London against the Republic of Djibouti by demanding that the port of Djibouti pay all the revenues it has received from the unloading of containers and the future revenues of the DMP during 43 years remaining of the duration of the concession.

"Thus, according to the concession, the port of Djibouti should either drive back these goods destined for Ethiopia, or unload them for free," he said.

Faced with the imperative of freeing ourselves from these constraints and putting an end to these obstacles, our country has taken its responsibilities by unilaterally terminating the concession contract with DP World.

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