Suldaanka

London Court: DP World Contract still valid and binding...

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http://gulfbusiness.com/london-court-rules-dp-world-djibouti-contract-valid-binding-dubai-govt/

 

Dubai’s government said on Thursday the London Court of International Arbitration (LCIA) has ruled DP World’s port container terminal contract in Djibouti was valid and binding.

The government of Djibouti seized the Doraleh Container Terminal from DP World in February over a dispute dating back to at least 2012. Dubai government-controlled DP World has called the seizure illegal.

“The LCIA Tribunal has ruled that Doraleh Container Terminal’s Concession Agreement ‘remains valid and binding …'” Dubai’s government media office said in a statement, which did not state when the ruling was made. “DP World will now reflect on the ruling and review its options.”

Also read: Dubai’s DP World will not consider settlement with Djibouti over port

A DP World spokesman referred to the Dubai government statement when contacted by Reuters for comment.

Djibouti officials could not be immediately reached for a comment.

Djibouti Ports and Free Zone Authority (DPFZA) said in March it was willing to buy out DP World’s 33 per cent stake in the container terminal to end the row with one of the world’s largest port operators. DP World denied that such an offer had been made.

In 2017, the LCIA cleared DP World of allegations of misconduct associated with the terminal concession awarded in 2000.

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Suldaanka,

It seems Mr Ghuelleh's mounting strategical, financial, and regional troubles are getting too much even for his world renowned "Machiavellian" innate ability to skin even the most hardiest of bare bones. Lets see how he will see himself out of this tight spot.

And remember, no reputed internationally traded company with touch this Doraleh Port Container Terminal (DCT) now given that there is a standing court ruling against anyone else getting a possession of it without firstly the parties to this old and disputed "concessionary agreement" coming to some sort of a settlement in the first place. 

Hence, no Singaporeans company will touch this Doralleh port Container Terminal (DCT) with a barge-pole (bun intended) now. And, of course, no European's port operating company will either wish to see being summoned to a court in London to answer the charge of getting a profit from a looted property, which will be the legal case they are likely to be confronted with in the event of them taking a shine of the Dorraleh port in this legally contested current circumstances.

And on top of that the "strategical noose" is getting tighter around the neck of Mr Ghuelleh now that the Ethiopia and Eritrea are getting their old routine and their "grooving dalliance" back on the "strategical dance floor" that is the horn-of-Africa, once again.

And of course, Uncle Sam (US) who basically and actually "engineered" this "diplomatic rapprochement" between these two parties (even if he had made a good use of the capable offices of the Emiratis to do so) is also contend to "teach" the likes of Mr Ghuelleh a bit of a lesson of how much of an "indigestion" one is liable to get if one was foolhardy enough to try to bite more than one can chew.

Of course, the reason the Yanks are in a "foul mood" towards the likes of Mr Ghuelleh is that it was Mr Ghuelleh who thought that it was a swell of an idea to have an open "strategical ménage-à-trois" with the Chinese, Yanks and him in the middle of it, without the other two parties never given their "consent" to such a "peculiar sleeping arrangement" to be done inside his own house of Djibouti in the first place. 

So lets see how he got his little country out of this jam. But still for what is worth I reckon the omens are not looking good for him in here, I must say.

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DP World CEO: All options open following Djibouti port court ruling

CNBC.jpg

Saturday August 4, 2018
David Reid

201884636689402277509930Sultan-Ahmed-Bin-Sulayem_DP-World1.jpg

DP World's chairman and CEO has told CNBC that he is looking at all options after a ruling by the London Court of International Arbitration (LCIA) found that its operating contract for a port container terminal in Djibouti was "valid and binding."

The Djibouti government wrested control of the Doraleh Container Terminal from the Dubai-based firm in February. Djibouti officials have long wanted to renegotiate the terms for the port's operating contract that DP World has held since 2006.

Sultan Ahmed Bin Sulayem, DP World chairman & CEO, told CNBC's Willem Marx that the LCIA's ruling was expected.

"What they (Djibouti government) did was illegal and we needed just the legal authority to say that," he said over the phone on Thursday.

Bin Sulayem said the legal ruling meant that all options are open to his company and he would now meet with advisers before proceeding with steps to reach compensation.

Djibouti Ports and Free Zone Authority (DPFZA) said in March it was willing to buy out DP World's 33 percent stake in the container terminal, but Bin Sulayem said no contact or discussion over any sale had ever been made.

He said he would now seek continued arbitration between the two parties to reconfirm rights, to validate the contract, and to "expose illegal activities of Djibouti."

Bin Sulayem added that it was a worrying development for capital making its way to the African continent.

"I can tell you it is putting a shadow on investment in Africa and it is making such investment more expensive. We continue to invest but I'm sure others are looking at this as an example," he said.

The Doraleh Container Terminal is the largest employer in Djibouti. The country is small but attracts investment because of its strategic location where the Red Sea meets the Gulf of Aden.

Somaliland investment.


DP World has a number of investments in East Africa, including one in Berbera, Somaliland. The region's self-proclaimed independence remains unrecognized by any country or international organization.

However, Bin Sulayem told CNBC that he had no issue in investing with the autonomous government in Somaliland and there was no need to go through the official Somali government.

"The argument between Somaliland and Somalia clearly recognizes that the economic activity in the region belongs to Somaliland. What we have done is within the law."

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Source:- https://www.hiiraan.com/news4/2018/Aug/159373/dp_world_ceo_all_options_open_following_djibouti_port_court_ruling.aspx

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44 minutes ago, Holac said:

Is this guy threatening Djibouti with a military option?

No. But he is hinting what is known as "Assets forfeiture" in the international law. Which means his government of the AUE could work its magic, or allow their top-dollar to work its captivating magic in the Western's corridors of power, whereby some of the western's states (such as the UK and US) could be "persuaded" to use that London's court ruling as the basis of asking their Treasuries to go after Djibouti's foreign assets (if they have any to begin with).

And then you will have the Iranian's situation all over again. Which was what happened to Iran after 1979 Islamic revolution, in which every Iranian's assets in the Western's bank was frozen to this day.

Also UAE (with the help of the Saudis) could persuade the US's congress in the sense of "greasing of the balm" of the US's Congress-people with the "easy-come-easy-go-Arabian's-money", to pass a deep and financially cutting sanction on Djibouti on the ostensible ground of saying that Djibouti had violating an international commercial contract.

This in turn will means a frozen assets of Djibouti and a "secondary sanction" on any business that is seen to be dabbling in Djibouti as an investor. Which in turn will mean international investors will be running away from Djibouti (like a man running away from a place a plague was seen stalking it around). Given that no "international investor" wants to be hit with US's financial sanctions by doing a business with a sanctioned state, like Iran for instance.

So the "option(s)" open to the UAE and are wide and varied, as it so happens. Hence, we ought to watch this issue with a keen interests, I reckon.

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8 minutes ago, Oodweyne said:

No. But he is hinting what is known as "Assets forfeiture" in the international law. Which means his government of the AUE could work its magic, or allow their top-dollar to work its captivating magic in the Western's corridors of power, whereby some of the western's states (such as the UK and US) could be "persuaded" to use that London's court ruling as the basis of asking their Treasuries to go after Djibouti's foreign assets (if they have any to begin with).

And then you will have the Iranian's situation all over again. Which was what happened to Iran after 1979 Islamic revolution, in which every Iranian's assets in the Western's bank was frozen to this day.

Also UAE (with the help of the Saudis) could persuade the US's congress in the sense of "greasing of the balm" of the US's Congress-people with the "easy-come-and-the-easy-go-Arabian's-money", to pass a deep and financially cutting sanction on Djibouti on the ostensible ground of saying that Djibouti had violating an international commercial contract.

This in turn will means a frozen assets of Djibouti and a "secondary sanction" on any business that is seen to be dabbling in Djibouti as an investor. Which in turn will mean international investors will be running away from Djibouti (like a man running away from a place a plague was seen stalking it around) since no "international investor" wants to be hit with US's financial sanctions by doing a business with a sanctioned state(like Iran for instance).

So the "option(s)" open to the UAE and are wide and varied, as it so happens. Hence, we ought to watch this issue with a keen interests, I reckon.

Djibouti has the best weapon mankind has ever had.

The ability to say nothing do nothing the ability to stay sitting tight in a corner like a kid who has a caaugh in kindergarten.

Even if UAE gets so frustrated by Djibouti and sends Eritrea across border, Djibouti can still afford to do nothing. Let the Eritrea has some desert or barren mountain, so what just shame the French and the Eritreans have to stop before humiliating the French.

Ethiopia cannot move business from Djibouti right now. Eritrea will not be ready even to take 10% of Ethiopian business for next 2 years. Somaliland has some capacity, but UAE may not want to go that route, since that will be against Eritrea.

 

This is the case when Lao Tzu said: "The softest things in the world overcome the hardest things in the world. Through this I know the advantage of taking no action."

 

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Djibouti gov't 'does not recognise the international rule of law', says DP World

arabianbusiness.jpg

Monday August 6, 2018
A statement from DP World reiterated that Djibouti does not have sovereignty over the Doraleh container terminal

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Dubai’s government said the London Court of International Arbitration “confirmed the illegitimacy” of Djibouti’s seizure of the terminal

Djibouti’s rejection of a London court ruling, which found it illegally seized a port facility from DP World, “demonstrates that it does not recognise the international rule of law”, the Dubai-based ports operator said in a statement.

The statement stems from a long-running dispute between the Horn of Africa country and DP World over the Doraleh container terminal, which was designed and built by DP World, who have run the terminal since 2006.

The company has been accused by Djibouti of under-managing the container terminal in favour of its main port in Dubai. Earlier this year, DP World’s 50-year contract was terminated.

On Thursday, Dubai’s government said the London Court of International Arbitration “confirmed the illegitimacy” of Djibouti’s seizure of the terminal.

The move was swiftly condemned by Djibouti’s presidency, which said “it does not recognise this arbitral award which consists in qualifying the law of a sovereign state as illegal.”

In the DP World statement, the company said that the London court’s decision “is based on recognised principles of international law and is internationally binding both on the Djibouti government and so far as third parties are concerned.”

The statement added that ‘as the court has held, Djibouti does not have sovereignty over a contract governed by English law.”

“It is well established that, in the absence of an express term to that effect, an English law contract cannot be unilaterally terminated at will,” the statement noted. “The contract therefore remains in full force and effect.”

Additionally, DP World said that it believes that the statements from the Djibouti government are contrary to the country’s interests, and that two previous cases brought by the government have been “even handed and fair”.

“In light of that indisputable success [of the terminal] and the fair and reasonable terms of the concession, the government’s attempts to terminate it cannot have anything to do with the fundamental interests of the people of Djibouti.”

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Source:-  https://www.hiiraan.com/news4/2018/Aug/159398/djibouti_gov_t_does_not_recognise_the_international_rule_of_law_says_dp_world.aspx

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I’m with OO here, Djibouti can sit tight. 

Nothing but a simple commercial dispute, Dubai can seize assets belonging to Djibouti in Dubai and still subject court ruling.

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23 hours ago, Miyir said:

I’m with OO here, Djibouti can sit tight. 

Nothing but a simple commercial dispute, Dubai can seize assets belonging to Djibouti in Dubai and still subject court ruling.

Miyir,

Of course, Djibouti can sit tight, as much a hapless frog can sit sight inside a gradually coming-to-boil water. And indeed for good measure, such frog could even start humming a soothing chants (or melodies) to itself just to ward off any panic attack such an increasing temperature of the water may in turn induced into him. But that would be a foolhardy strategy to say the least.

After all, coming back to this issue, the government of UAE are not only fully committed to taking this issue further, but they are also determined, by the looks of it, to escalate it further down the road than what hitherto it was. Previously, as you know this was no more than a mere commercial dispute between the parties. But now it's shading into a "strategical tug-of-war" where other powers have stake in the manner this issue comes down to its final verdict of the situation.

Furthermore, as you know, in this world, with Mr Trump acting as a manner no more dignified than a mere headless bull in a china's shop, particularly with international diplomacy and all of the previous norms of inter-state relationships, it will not be difficulty to see UAE in conjunction with Saudi's princes (who are in turn the current darlings of Mr Trump's White-House and his children) persuading the Yanks to start "squeezing" the likes of Djibouti.

And squeeze her from strategical plain to political terrain on the account of some alleged perfidious conduct on the part of Djibouti. Specifically in seeing Djibouti having the temerity of double-crossing Uncle Sam (US) in the way it did got into bed with the Chinese. Whilst it could be argued, or at least a good case could be made for it, that the US had assumed that previously Djibouti was all but its client-state in the Red-Sea.

Subsequently, if Mr Trump's administration gets to be "convinced" of such reasoning, and it will not be difficult to do so, particularly if you could put this issue in-terms of USA vs China and how Djibouti is on the side of China, then that could in turn open a whole new can of worm of a strategical kind, in which Djibouti may not be able to navigate its way out of it.

Of course, the reason it will be difficulty is that Djibouti will be confronting Uncle Sam (US) in that eventuality not the kind of DP world and its patron in the UAE's government sort of "adversaries", which could have been mightily difficult but manageable. But now it will be different ball game. Which means the dearly hapless and tiny Djibouti will be looking at the wrong-end of the strategical gun from Uncle Sam (US), with all the "endless nightmares" such "scenario" will be pregnant with where Djibouti is concern. 

So as you can see this issue will run and run, in a drip by drip sort of running sore. And DP World, supported by the UAE's government and its limitless pile of money are unlikely that they will rest from it, or will give up their pursuit of it against Djibouti in any time soon. I wish that wasn't the case in here, but I really don't see any other way it can't be. 

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UAE and Djibouti trade/investment totally one sided, for these reasons Dubai World to recover the seized assets minimal, a bit surprised they rejected compensation but understandable the lose is existential treat

China with the deepest pockets determined to eliminate the middle man, Djibouti was totally neglected by Dubai World it was fastest growing deep port,  Dubai world can't do much here. the politics side is all noise it will die down soon as usual the Arabs wake up too late and get emotional and start drawing money all over the place with no plans, if they invested Djibouti as the shipping volume started to grow rabidly China will never taken over, what did the shallow Badawien do? divert shipping lines to Jabel Ali and play half smart. 

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^^^^^

Miyir,

I really beg to differ with you in here, my friend  But we will see. And in all honesty, the Chinese are dependent on Ethiopia not turning against its strategy in Africa, since Djibouti is but a mere gate-way to that vast market that is Ethiopia.

However, now with Abby Ahmed making his bed with the West (and America in particularly) you will see soon a dash of investment to Eritrea from the same Arabs to build those ports of Eritrea (with the tacit nod of approval from Uncle Sam). And that means, the squeeze on Djibouti (from strategical to economical) will get ever more tighter around the neck of Djibouti. And all because Djibouti has sided with China against US.

Hence putting all these together, I really believe you are missing the pig-picture if you view the spat between DP World supported by UAE against Djibouti as a mere trifling dispute between these two parties. For it's actually larger portent than that. And our "cousins" in Djibouti have chosen the wrong ditch (or the wrong hill) to which to pick a fight on it. But we shall see. 

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The drip-drip Saga continues.....

Dispute Between Dubai And Djibouti Over Port Seizure Continues, Despite Tribunal Ruling

Forbes.jpg

Monday August 13, 2018

People stand next to a ship loaded with containers at the Doraleh Container Terminal in Djibouti, on July 4, 2018. (Photo: YASUYOSHI CHIBA/AFP/Getty Images)

People stand next to a ship loaded with containers at the Doraleh Container Terminal in Djibouti, on July 4, 2018. (Photo: YASUYOSHI CHIBA/AFP/Getty Images)

The dispute between Dubai-based DP World and Djibouti over control of the east African country’s container port looks set to rumble on, after the government said it “does not recognize” a decision by an international arbitration court that DP World’s contract to operate the port remains valid.

On August 2 the London Court of International Arbitration (LCIA) ruled that the Djibouti government had acted illegitimately when it seized control of the Doraleh Container Terminal from DP World on February 22 this year.

DP World designed, built and operated the terminal following a concession awarded in 2006, in which it took a 33% ownership stake, with the remaining 67% held by the Djibouti authorities. 

The port opened in 2009 but DP World says the government subsequently began to pressure it to renegotiate the terms of its concession, which it was unwilling to do.

Djibouti then moved to strip the company of its concession. Under Law No. 202 enacted in 2017, along with a number of decrees issued in 2018, the government gave itself the power to terminate the contract with the Dubai-based port operator.

Having fought to hold on its concession, DP World welcomed the latest tribunal decision and said it “will now reflect on the ruling and review its options.”


However, the Djibouti government appears unwilling to give up. In a statement issued in response to the tribunal’s ruling, it claimed the contract for the port was “seriously prejudicial to the country's development imperatives and to the control of its most strategic infrastructure” and that terminating the contract was “necessary and unavoidable [and] made in accordance with international public law.”

The government declined to take part in the arbitration process and now says “the Republic of Djibouti does not recognize this arbitral award” and that “only an outcome consisting in the payment of a fair compensation in accordance with the principles of international law can be envisaged”.

It is not clear from its statement which side it thinks should pay compensation or what amount it would deem to be "fair."

Arbitrators have consistently sided with DP World in the dispute. An LCIA tribunal in 2017 found the terms of the concession to be “fair and reasonable”. Following the passage of Law No. 202, DP World launched a new arbitration case in February this year. The latest ruling backed up the 2017 findings, with the court deciding that the concession agreement “remains valid and binding notwithstanding Law 202 and the 2018 decrees.”

DP World claims the Doraleh Container Terminal is the largest employer and biggest source of revenue in Djibouti and has operated at a profit every year since it opened.

The port is located at the center of a region of growing interest for Gulf countries, with ever more apparent competition for influence between the UAE and Qatar in particular. DP World also operates a port in Berbera in the self-declared republic of Somaliland and UAE military forces have used the Eritrean port of Assab as part of their ongoing campaign in Yemen.

DP World’s chairman and chief executive Sultan bin Sulayem recently announced his company is planning to develop a logistics hub in Ethiopia, which will be linked to Berbera port. The recent historic rapprochement between Ethiopia and Eritrea – which was partly enabled by active diplomacy from Mohammed bin Zayed Al-Nahyan, crown prince of Abu Dhabi – could provide another useful boost to the prospects for DP World’s new Ethiopian project.

All this fits in with what Dubai sees as one of its core strengths: transport and logistics. Speaking in London on July 26, minister of state for foreign affairs Anwar Gargash said “A large part of the success of the UAE is in logistics, so our interest in ports is basically driven by our national experience. One of our big successes is really being able to be a logistics center for the region.”

That suggests that DP World and the UAE government are unlikely to give up on their fight for control of the Djibouti port any time soon.

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Source:- https://www.hiiraan.com/news4/2018/Aug/159517/dispute_between_dubai_and_djibouti_over_port_seizure_continues_despite_tribunal_ruling.aspx

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