Boankra Inland Port Dispute: Justmoh Const. Ordered To Pay US$33.3m …To Ashanti Port Services

The Ghana Arbitration Centre of the United Nations Commission on International Trade Law Arbitrations Rules (UNCITRAL Rules) has, in a unanimous decision, ordered Justmoh Construction Limited to refund US$33.3 million to Ashanti Port Services Limited as the outstanding balance of advance mobilisation paid over disputes arising from the Boankra Inland Port (BILT) project.

The amount is to attract simple interest at a rate of four percent per annum, calculated from 30 days after receipt of the award until full payment. The tribunal, on the other hand, also directed Ashanti Port Services Limited to pay US$ 7,107,456.70 to Justmoh Construction Limited as compensation for earthworks executed at the project site.

The Ashanti Ports Services Limited had filed a notice of arbitration at the Ghana Arbitration Centre to seek redress for alleged unlawful termination of contract as a concessionaire for the Boankra Integrated and Logistics Terminal (BILT) project.

Costs

With regards to costs, the tribunal ordered Justmoh Construction to pay 75 percent of Ashanti Port Services’ legal fees, as well as 75 percent of the Claimant’s share of the arbitrators’ and administrative fees, which amount to US$226,875 and GHS26,250 with no interest accruing on the awarded costs.

Parties and Counsel 

The arbitration involved Ashanti Port Services Limited as the Claimant and Justmoh Construction Limited as the Respondent.

The Claimant was represented by G.A. Sarpong & Co., while the Respondent was represented by Owusu-Ankomah, Arvoh Mensah, Dzigba & Associates.

The dispute formally commenced on December 19, 2023 when the Ghana Arbitration Centre received a Notice of Arbitration from the Ashanti Post Services.

This was followed by the Respondent’s (Justmoh Construction Limited) answer on January 10, 2024 and the Claimant’s Reply on January 22, 2024 after which the GAC constituted a three-member tribunal made up of Mr Emmanuel Amofa, Professor Richard Frimpong Oppong and Justice Nene A.O. Amegatcher, (Presiding) on February 12, 2024 – which composition was not objected to by either party.

Following, a virtual arbitration management conference held on March 5, 2024 saw the parties agreeing that certain preliminary matters should be determined first.

These included the Respondent’s challenge to the tribunal’s jurisdiction and the Claimant’s applications for interim injunction and preservation orders.

After affidavits were exchanged and written submissions, the tribunal conducted an online oral hearing on April 2, 2024.

Both parties were represented by counsel and made detailed submissions on the preliminary issues.

Merits of the dispute 

After post-hearing briefs were filed, the tribunal closed hearings on the preliminary matters and issued its Award on Jurisdiction and Interim Relief on May 17, 2024.

The proceedings then continued to the substantive merits of the dispute.

A key issue before the tribunal was whether earthworks executed by Justmoh Construction were indeed worth about US$33 million, as claimed by the Respondent.

Ashanti Port Services argued that the cost of the earthworks did not exceed an estimated US$4 million, relying largely on earlier projections.

However, the tribunal found that the Claimant failed to provide independent evidence or expert testimony to support its valuation.

The tribunal noted that Ashanti Port Services did not conduct its own independent examination of the cost of the earthworks.

Justmoh Construction, on the other hand, relied on interim payment certificates, monthly progress reports, photographs, designs, and letters from the independent consultant, Vision Consult.

The Respondent also pointed to correspondence in which the Claimant acknowledged that the value of works executed exceeded US$33 million.

While observing that earthworks were not expressly provided for under the Boankra Contract, the tribunal accepted that substantial works were executed and supported by documentary and photographic evidence presented during the proceedings.

In its final award, the tribunal declared that Justmoh Construction lawfully terminated the Boankra Contract, effectively settling the dispute over the contract’s termination.

All other claims and requests for relief by the parties were dismissed, bringing the arbitration proceedings at the Ghana Arbitration Centre to a close.

Ashanti Port stance 

Nana Kwaku Dwamena III, the Kwahu Nkwatia Benkumhene, who doubles as the Chief Executive Officer of Ashanti Port Services Limited (APSL) has expressed satisfaction with the outcome of the recent verdict delivered by the Ghana Arbitration Centre (GAC).

He upheld the decision of the tribunal and believes it provides clarity and closure to the matter under arbitration.

According to Nana Kwaku Dwamena III, the ruling reflects the strength of Ghana’s alternative dispute resolution mechanisms and underscores the importance of resolving disputes through lawful and institutional processes.

He noted that arbitration remains a credible avenue for settling complex disagreements, especially those involving major projects and contractual obligations.

The Kwahu Nkwatia Benkumhene indicated that while arbitration outcomes may not always fully satisfy all parties, respecting the final decision is crucial for maintaining confidence in the justice system.

He emphasised that accepting the verdict demonstrates maturity, responsibility and respect for the rule of law.

Nana Kwaku Dwamena III further explained that prolonged disputes often stall development and create uncertainty, which negatively affects communities and investors.

The post Boankra Inland Port Dispute: Justmoh Const. Ordered To Pay US$33.3m …To Ashanti Port Services appeared first on The Ghanaian Chronicle.

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