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DP World Vows to Defend Rights in Doraleh Container Terminal

The entrance gate of Doraleh Multi-Purpose Port in Djibouti. (AFP file)
The entrance gate of Doraleh Multi-Purpose Port in Djibouti. (AFP file)
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DP World Vows to Defend Rights in Doraleh Container Terminal

The entrance gate of Doraleh Multi-Purpose Port in Djibouti. (AFP file)
The entrance gate of Doraleh Multi-Purpose Port in Djibouti. (AFP file)

Global ports operator DP World said Tuesday that it would continue to pursue all legal means to defend its rights in a raging dispute with the government of Djibouti, given that it is a shareholder and concessionaire in Doraleh Container Terminal (DCT).

DP World described Djibouti's decision on Sunday to nationalize the port as "a blatant disregard for the rule of law and respect for commercial contracts."

This step is the latest in the campaign launched by Djibouti government since five years in order to deprive DCT of the agreement signed in 2006, DP World said in a statement published Tuesday – the agreement granted DP World the right to manage the terminal in which it has a stake in.

On August 31, the High Court of England & Wales issued an injunction restraining Djibouti's Port de Djibouti (PDSA), as a shareholder in DCT, from treating its joint venture shareholders' agreement with DP World as terminated. The UK court has further prohibited PDSA from removing directors of the DCT joint venture company.

The concession agreement between DP World and Djibouti, signed in 2006, is governed by English law and through the London Court of International Arbitration, the port operator said.

“Investors across the world must think twice about investing in Djibouti and reassess any agreements they may have with a government that has no respect for legal agreements and changes them at will without agreement or consent,” a DP World spokesperson said.

The terminal was run by DP World since 2006, however, in late February Djibouti canceled the contract.

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Egypt Makes Progress in its Nuclear Energy Project

Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)
Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)
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Egypt Makes Progress in its Nuclear Energy Project

Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)
Construction work at the El-Dabaa nuclear power plant. (Egyptian Nuclear Power Plants Authority)

Egypt has reported significant progress in the construction of the El-Dabaa nuclear power plant in the country’s northwest, a project being developed in cooperation with Russia. The government announced on Tuesday that more than 20% of the project has been completed.

Egypt and Russia signed a cooperation agreement on November 19, 2015, to establish the nuclear power station at a cost of $25 billion, funded through a Russian government loan. The final agreements for El-Dabaa were signed in December 2017.

The plant will consist of four nuclear reactors with a total generation capacity of 4,800 megawatts, each producing 1,200 megawatts. The first reactor is scheduled to begin operations in 2028, with the remaining units coming online gradually as part of Egypt’s energy mix.

In its quarterly performance report, the Egyptian government stated that the project aligns with efforts to expand the peaceful use of nuclear energy within the national power grid.

President Abdel Fattah al-Sisi emphasized in November the importance of executing energy projects efficiently and on schedule, calling them a pillar of Egypt’s development strategy. He underscored the need to adhere to the project timeline while ensuring the highest standards of execution and workforce training.

Also in November, Prime Minister Mostafa Madbouly reaffirmed Egypt’s commitment to the project, stating that El-Dabaa would enhance renewable energy capacity and stabilize the national power grid.

In early March, Russia’s Atomstroyexport announced that construction on the second reactor at El-Dabaa had progressed ahead of schedule. According to the Egyptian Nuclear Power Plants Authority, the second tier of the inner containment structure had been installed at the reactor building.

Egypt experienced widespread power outages last summer, which ended in late July after securing sufficient fuel supplies for its power plants.

The El-Dabaa project is part of Egypt’s strategy to diversify its energy sources, generate electricity to meet domestic demand, and reduce reliance on imported gas and other fuels.

On Tuesday, the government also announced an additional 200 megawatts of private-sector solar power capacity as part of its efforts to expand renewable energy. Officials said the move would support energy diversification and advance the country’s sustainable development strategy.