Boankra Inland Port project: Justmoh to pay Ashanti Port $33.3m
The Ghana Arbitration Centre (GAC) has ordered Justmoh Construction Limited to refund $33.3 million to Ashanti Port Services Limited as the outstanding payment for advance mobilisation over disputes arising from the Boankra Inland Port project.
The amount will attract simple interest at a rate of four per cent per annum, calculated from 30 days after receipt of the award, until full payment is made.
Conversely, the tribunal directed Ashanti Port Services Limited to pay $7.11 to Justmoh Construction Limited as compensation for earthworks executed at the project site.
The tribunal further ordered Justmoh Construction to pay 75 per cent of Ashanti Port Services’ legal fees, as well as 75 per cent of the claimant’s share of the arbitrators’ and administrative fees amounting to $226,875 and GH¢26,250, with no interest accruing on the costs award.
Arbitration
The arbitration involved Ashanti Port Services Limited as the claimant and Justmoh Construction Limited as the respondent.
Ashanti Port Services was represented by G.A. Sarpong & Co., while Justmoh Construction was represented by Owusu-Ankomah, Arvoh Mensah, Dzigba & Associates.
Substantive merits
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 $33 million as claimed by the company.
Ashanti Port Services argued that the cost of the earthworks did not exceed an estimated $4 million, relying largely on earlier projections.
However, the tribunal found that Ashanti Port Services 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.
Justmoh Construction further pointed to correspondence in which Ashanti Port Services acknowledged that the value of works executed exceeded $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 comment
The Kwahu Nkwatia Benkumhene, Nana Afum Dwamena III, who doubles as the Chief Executive Officer of Ashanti Port Services Limited (APSL), has since expressed satisfaction with the outcome of the verdict delivered by the Ghana Arbitration Centre.
The traditional ruler stated that the decision of the tribunal provided clarity and closure to the matter under arbitration.
He said the ruling reflected the strength of Ghana’s alternative dispute resolution mechanism and underscored the importance of resolving disputes through lawful and institutional processes.
He further stated that arbitration remained a credible avenue for settling complex disagreements, especially those involving major projects and contractual obligations.
The Kwahu Nkwatia Benkumhene indicated that while arbitration outcomes might not always fully satisfy all parties, respecting the final decision was crucial to maintaining confidence in the justice system.
He emphasised that accepting the verdict demonstrated maturity, responsibility, and respect for the rule of law.
Nana Dwamena further explained that prolonged disputes often stalled development and created uncertainty, which negatively affected communities and investors.
Processes
The dispute formally commenced on December 19, 2023, when the Ghana Arbitration Centre received the Ashanti Post Service’s Notice of Arbitration.
This was followed by Justmoh Construction’s answer on January 10, 2024, and the claimant’s reply on January 22, 2024.
On February 12, 2024, the GAC constituted a three-member tribunal made up of Emmanuel Amofa, Professor Richard Frimpong Oppong and Justice Nene A.O. Amegatcher, who served as
Chair, with neither party objecting to the composition of the tribunal.
During a virtual arbitration management conference on March 5, 2024, the parties agreed 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.
Following the exchange of affidavits and written submissions, the tribunal conducted an online oral hearing on April 2, 2024, with both parties represented by their counsels and making detailed submissions on the preliminary issues.
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.
