Court grants Ashanti Ports Service Limited right to enforce arbitration ruling.

The High Court, Commercial Division, in Accra has granted Ashanti Ports Services Limited (APSL) the right to enforce an arbitration ruling against JUSTMOH Construction Limited.

The court partially granted APSL's application for interim preservation and ordered JUSTMOH Construction to preserve $25 million in its dollar account pending the determination of the arbitration.

APSL SUES TRANSPORT MINISTRY FOR $3.6 BILLION

APSL has also sued the Transport Ministry at the Court of Arbitration, seeking

$3.6 billion in damages for contract termination.

The company claims that the Ghana Shippers Authority unilaterally terminated the contract for the Boankra Integrated Logistics Terminal Project, despite APSL's substantial investment and progress on the project.

Background

APSL, a private consortium, had commenced construction of the Boankra Inland Port Project before the contract was terminated.

The company is seeking damages for breach of contract and is asking the Court of Arbitration to declare the unilateral termination of the contract as unlawful.

Reliefs sought

APSL is seeking several reliefs, including a declaration that the termination of the contract is unlawful, an interim injunction restraining the GSA from carrying on any works at the project site, and general damages for breach of contract.

The company is also seeking special damages, an order for a refund of $16 million, and an order for payment of $3.6 billion in damages.

Case in brief

APSL was formed as a special purpose vehicle to represent a consortium member of Afum Quality Limited (AQL), which specializes in providing technical expertise and financial aid.

APSL was to render services for the Boankra Integrated Logistics Terminal project, which 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.

The Ghana Shippers Authority compelled APSL to organize a sod-cutting event prior to fulfilling preconditions necessary for the performance of its obligations under the concession.

APSL undertook substantial groundwork for the sod-cutting event, including expanding and gravelling the road from the entrance to the administration block.

The Ghana Shippers Authority served a preliminary notice of termination of the concession, alleging that APSL had failed to achieve financial close within the cure period.

Attached is the court ruling: