The Ghana Arbitration Centre (GAC) has ruled in favour of Ashanti Port Services Limited (APSL) in a protracted contractual dispute over the Boankra Inland Port (BILT) project, ordering Justmoh Construction Limited to refund $33.3 million in outstanding advance mobilisation funds.
The unanimous decision, delivered by a three-member arbitration panel, effectively brings to an end months of legal uncertainty that had clouded the future of the strategically important inland port project.
The tribunal, made up of Justice Nene A.O. Amegatcher, Mr. Emmanuel Amofa, and Professor Richard Frimpong Oppong, found that Justmoh Construction was obligated to return the unutilised portion of funds advanced by APSL under the Boankra contract.
Under the award, Justmoh Construction is required to refund the $33.3 million within 30 days, failing which a simple interest of four per cent per annum will accrue on the amount until full payment is made.
In a cross-claim settlement, the tribunal also directed APSL to pay $7,107,456.70 to Justmoh Construction as compensation for earthworks already executed at the project site.
Additionally, Justmoh was ordered to bear 75 per cent of APSL’s legal fees as well as 75 per cent of the arbitration and administrative costs, assessed at $226,875 and GHS 26,250, respectively.
At the heart of the arbitration was a dispute over the valuation of earthworks undertaken at the Boankra site. Justmoh Construction had contended that the works carried out were valued at more than $33 million, relying on internal progress reports and photographic evidence. APSL, however, maintained that the works were worth approximately $4 million.
While the tribunal noted that APSL failed to submit independent expert valuations to directly challenge Justmoh’s claims, it ultimately adopted a balanced approach in determining the final compensation payable for the completed works.
The panel further held that Justmoh Construction had lawfully terminated the Boankra contract, but dismissed all remaining claims brought by both parties, thereby conclusively ending the dispute.
Reacting to the ruling, Nana Afum Dwamena III, Chief Executive Officer of APSL and Kwahu Nkwatia Benkumhene, welcomed the decision, describing it as a triumph for due process and the rule of law.
“Accepting the verdict demonstrates maturity, responsibility, and respect for the rule of law,” he said in an interview with Despite Media, adding that the resolution was vital to restoring investor confidence and preventing prolonged legal disputes from derailing national development projects.
The arbitration was initiated by APSL on December 19, 2023, with the tribunal formally constituted in February 2024. The final award now clears the legal hurdles surrounding the Boankra Inland Port, paving the way for the project’s next phase
Source: www.kumasimail.com
