Djibouti Nationalises Doraleh Shares

 10 Sep 2018 11.37am

The Djibouti government will nationalise shares held by the Port of Djibouti, S.A (PDSA) in the Doraleh Container Terminal (DCT) to protect what it calls “the interests of the nation”, following the latest court ruling in its dispute with DP World.

It will now buy the 66.6% shares held by the PDSA in the DCT, with DP World owning the remaining 33.3%.

On September 5, the High Court ruled that Djibouti must accept the judgement of the London Court of International Arbitration (LCIA) that its seizure of the DCT, in February 2018, was illegal.

In a statement, the Djibouti government commented: “The representatives of the State in the governing bodies of the (DCT) company will be appointed by decree.

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“DP World's "strategy", which consists in trying to oppose the will of a sovereign state, is both unrealistic and destined to fail.

“In any case, the proliferation of legal procedures, the "fake news" campaigns, the intimidation attempts against Djibouti or its strategic and commercial partners will have no effect.

“That is why a fair compensation outcome is the only possible option for DP World, in line with the principles of international law.” 

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