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Procedural Posture
This document is an Amended Request for Arbitration submitted on behalf of the Claimants—the Republic of Djibouti, the Djibouti Ports and Free Zone Authority, and Port de Djibouti S.A.—against DP World Djibouti FZCO, Dubai (International) Djibouti FZE, and Doraleh Container Terminal SA (nominally) pursuant to Article 1.1 of the LCIA Rules. The dispute arises out of a Concession Agreement, a Joint Venture Agreement, and a Management Services Agreement concerning the development, management, and operation of the Doraleh Container Terminal in Djibouti.
Factual and Legal Basis of the Claims
The Claimants assert that the underlying project agreements were procured through bribery and corruption. Specifically, the Claimants allege that the Respondents covertly paid significant bribes and conferred other financial benefits upon Mr. Abdourahman Boreh, the lead government official charged with negotiating the agreements on behalf of Djibouti. According to the Request, these illicit payments were facilitated through sham "consultancy agreements," offshore accounts, the award of lucrative subcontracts to companies controlled by Mr. Boreh, and a concealed agreement to transfer shares in DP World to an offshore company owned by him.
Relying on English law, which governs the Concession and Joint Venture Agreements, the Claimants contend that the discovery of such secret commissions and conflicts of interest deprived the Republic of Djibouti of its representative's disinterested advice, thereby rendering the resulting contracts voidable ab initio. The Claimants maintain that they have validly exercised their right to rescind the agreements and that the Respondents are consequently estopped from enforcing the Management Services Agreement.
Relief Sought
In their prayer for relief, the Claimants seek an arbitral award declaring that the Concession Agreement and Joint Venture Agreement are voidable and have been legally rescinded. Furthermore, the Claimants request damages caused by the alleged fraud—including excess profits extracted by the Respondents under the tainted contract terms—as well as restitution of the bribes paid and the reimbursement of all legal fees and arbitration costs. Procedurally, the Claimants nominate Mr. Peter Leaver as their party-appointed co-arbitrator and propose a three-member tribunal seated in London.
