$160m award to Africa Integras false – UG

The University of Ghana (UG) has refuted reports that suggest a UK arbitrator has awarded $160 million against the university in the case involving the school and African Integras Project, a private investor.

According to a statement purported to have been written by Charles Smith in London, a UK arbitrator dismissed the two claims by the University of Ghana and awarded termination costs of more than $160 million to the project developers over the university’s decision to cancel a $64-million development contract.

But a statement signed by the university’s registrar, Mercy Haizel Ashia stated that the said report is false and intended to create panic among the university’s stakeholders.

The statement read: “The said story contains significant misstatement and untruth intended to create panic among the university’s stakeholders and perhaps to put pressure on the university to accept a position detrimental to the interest of the university.

“The Africa Intergras projects including matters relating to the substantive and procedural merits of the contract has not been determined by an arbitrator.

“Management of the university therefore urges calm and assures all stakeholders that it is taking all necessary and reasonable steps to secure the best interest and future of the University of Ghana.”

Background

In July 2014, under the leadership of the then Vice-Chancellor, Prof. Ernest Aryeetey, the University of Ghana entered into a contract with Africa Integras, a private investment company in New York, USA, to construct five buildings for the university on a Build Operate and Transfer (BOT) basis.

The projects were the construction of an expanded facility for the College of Humanities, a complex for the new College of Education, a new building complex for the College of Basic and Applied Sciences, a complex to house the Institute of Technology and Applied Science and a building for the College of Health Sciences.



It was a 25-year Build, Operate and Transfer (BOT) contract but when the leadership of the university changed in January 2016, the new Vice-Chancellor, Professor Ebenezer Oduro Owusu cancelled the project, citing issues with viability and favourableness with the project contract.

The $64 million infrastructure project then came to a halt due to the disagreement between the two Vice-Chancellors.

The matter then went for arbitration in London.