Republic of Djibouti issues statement as response to DP World's allegations regarding Doraleh Container Terminal
The Government of Djibouti took this decision in light of the recent poor performance of the Doraleh Container Terminal, and to rectify irregularities in the agreement covering its operation:
Contrary to the statement released by the Government of Dubai, the agreement was not for DP World to design, build and operate Doraleh Container Terminal - what is often referred to as BOT - but a joint venture between DP World (33.33% of the shares) and Port Autonome International de Djibouti (66.66% of the shares).
Since 2008, Doraleh Container Terminal has achieved only 57% of its total volume, despite operating in a favourable import-export environment.
In the meantime, DP World developed other ports in countries close to Djibouti and used aggressive tactics such as the deliberate slowing of the development of Doraleh Container Terminal in favour of their main asset at Jebel Ali.
The original agreement, which contained a number of irregularities, excluded Djibouti from decision-making processes and the management of the company.
Summary of the statement issued by the Republic of Djibouti
The Republic of Djibouti maintains that the decision to cancel its contract with DP World for the Doraleh Container Terminal concession was in accordance with the law passed in Parliament on 8 November 2017
The Government of Djibouti and its representatives tried to negotiate in good faith to find a solution to this situation, going back six years, but these efforts were rejected by DP World
The Djiboutian state therefore firmly opposes DP World’s recent statement which threatened any company which entered into a new contract with Djibouti related to the Doraleh Container Terminal
DP World has no respect towards the sovereign power of the Djiboutian state and no right to threaten other companies who wish to enter into business with the Djiboutian state
The Republic of Djibouti states that the previous contract with DP World was detrimental to the country’s interests such as its control over its own infrastructure, its economic growth and its ability to improve the living conditions
The Republic of Djibouti wishes to emphasise that it remains open to business. Specifically, Djibouti wishes to highlight that international investors from the public and private sectors, in particular from the infrastructure sector, are very welcome in Djibouti