DP World successfully defends $2+ billion bribery case brought by the Republic of Djibouti

22/02/17

Dubai Ports World has successfully defended itself against a $2+ billion claim brought by the Republic of Djibouti which sought to rescind a 30 year concession agreement pursuant to which DP World has the exclusive right to manage and operate the Doraleh container terminal in Djibouti.  The Doraleh terminal is the largest in Africa.  The Republic of Djibouti alleged that DP World had made various illegal payments to a prominent international businessman, Mr Abdourahman Boreh, in order to procure the concession and it claimed to be entitled to rescind the concession agreement and to damages. Following a hearing in September and October 2016, an arbitral tribunal has dismissed the Republic’s claims and ordered it to pay DP World’s costs on an indemnity basis.  The award from the tribunal is the latest decision in a long-running and high-profile dispute concerning the Doraleh terminal.  The Republic had previously brought proceedings in the Commercial Court against Mr Boreh which were dismissed earlier in 2016 by Mr Justice Flaux.