Boankra Inland Ports project in limbo as Ashanti Port Services files injunction over contract termination

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

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

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

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

The remaining 27 years, according to the agreement referred to in the writ, would be used for the operation with a 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 specializes in providing technical expertise and financial aid.

Thus, APSL was to render these services for the BILT project, which was aimed at creating 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), as the writ claims, compelled APSL to organize a sod-cutting event prior to fulfilling the preconditions necessary for the performance of its obligations under the concession.

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

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

Interferences:

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

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

Termination:

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

The GSA alleged that APSL had failed to achieve financial closure within the cure period.

Reliefs being sought by APSL:

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

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

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

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

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

Another relief being sought by APSL is an order for a refund of the additional sum of 16,000,000 million dollars paid by the 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 for the refund of 49 million dollars, representing 39% of the claimant's share value sold to GPHA.

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

The 9th relief is that the court should order the restoration of the contract in favor of the claimant as a concessionaire.

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