Boankra Inland Ports Project in limbo as Ashanti Port Services files injunction application at Arbitration Tribunal over contract termination

Ashanti Port Services Limited (APSL), a private consortium which had commenced the construction of the Boankra Inland Port Project has filed a writ at the Ghana Arbitration Center against the Ghana Shippers Authority (GSA) over termination of contract.

APSL in the writ invoked the powers of the United Nations Commission on International Trade Law Arbitration, seeking damages amounting over 3 billion US dollars, through the Ministry of Transport.

APSL, in its statement of claim said its member of the consortium, Afum Quality Limited (AQL) entered an agreement with the Ghana Shippers Authority on 25th September, 2020 to construct and develop the Boankra Integrated Logistics Terminal (BILT) on a Build, Operate and Transfer basis (BOT) but deal was unilaterally terminated by the GSA on 5th July 2023.

The BOT, according to documents made available by APSL to this news outfit was to last for 30 years in which AQL and its consortium, APSL would in 3 years construct the Boankra Integrated Logistics Terminal.

The remaining 27 years, according to the agreement pointed to in the writ would be used to for the operation of the projected profit margin of 3,683,720,785 million dollars.

Background:

APSL was formed as a special purpose vehicle to represent a consortium member of AQL, which specialises in providing technical expertise and financial aid.

Thus APSL was to render these services for the BILT project which was aimed to create vital infrastructure linking the ports of Tema and Takoradi to the inner parts of Ghana and the landlocked countries of Burkina Faso, Mali and Niger.

Details:

After the execution of the concession agreement, the Ghana Shippers Authority (GSA) the writ claimed compelled the APSL to organise a sod cutting event prior to the fulfilling preconditions necessary for the performance of its obligations under the concession

The sod-cutting ceremony, APSL which is claimant in the case noted brought huge financial expenses.

APSL also undertook substantial ground work for the sod cutting event including expanding and gravelling the road from the entrance to the administration block.

Interferences:

The statement of writ by APSL cited many Interferences while working on the BILT project.

And example of such interference was the purchase of 39% shares by the respondent which is Ghana Shippers Authority from APSL.

Termination:

However, despite the ongoing work by APSL, GSA by letter dated 5th July, 2023 to claimant APSL served a preliminary notice of termination of the concession.

The GSA alleged that APSL had failed in achieving financial close within the cure period.

Reliefs Being Sought For By APSL

APSL is asking the Court of Arbitration to among other reliefs a declaration that the unilateral termination of the contract by GSA is unlawful.

APSL also want the Court of Arbitration to declare that interferences from the respondent acting through GSA were material breaches which contributed  to GSA erroneously considering Claimant as having failed to meet financial close.

It also seeks an interim injunction restraining the GSA from carrying on any works at the BILT project site pending the hearing and determination of the arbitration.

APSL is seeking general damages for breach of the concession agreement dated 25th September, 2020 by the Respondent (GSA).

Claimant herein referred to as APSL is also seeking special damages of the expenses incurred by Claimant in the region of 16,300,000 million dollars paid with interest.

Another relief being sought for by APSL is an order for a refund of the additional sum of 16,000,000 million dollars paid by Ghana Ports and Harbours Association (GPHA) to Justmoh Construction Limited representing the balance of the total amount for the 39% shares in APSL acquired by GPHA.

Additional relief being asked by APSL is an order of refund of 49 million dollars representing 39% of Claimants Share Value sold to GPHA..

The eight relief by the claimant is an order for payment of 3,683,720,785 billion dollars being the project income for the BILT operating period of 27 years.

The 9th relief is that Court should order for restoration of the contract in favour of the Claimant as concessionaire.

And lastly, APSL seeks that costs including legal fees be awarded to them.

Source: Ghana/otecfmghana.com/Francis Appiah