Boankra Inland Port Concession: APSL drags Ministry, GSA to arbitration, demands $3.6Bn

Ashanti Ports Services Limited (APSL) has dragged the Ministry of Transport to the Ghana Arbitration Centre for the unlawful termination of the Concession Agreement between them.

The claimant avers that the termination by the ministry acting through the Ghana Shippers Authority (GSA) has prevented it from entering the site and controlling any of its materials, construction plant, stores, etc.

It is thus seeking an order for the payment of UD$ 3,683,720,785, which is the projected income for the BILT operations period of 27 years.

Following an international bidding process, the Ministry of Transport, acting through the Ghana Shippers Authority (GSA), awarded a concessionaire right for the development of the Boankra Integrated Logistics Terminal (BILT) project on a build, operate, and transfer (BOT) basis to Afum Quality Limited (AQL).

The notice indicates that Ashanti Port Services Limited (APSL) was formed as a special purpose vehicle to represent a consortium member of AQL and thus provide technical expertise and financial aid for the project.

APSL adds, however, that after it had undertaken substantial groundwork and rigorously pursued the other necessary preconditions of the project, the ministry started interfering in its work, leading to the termination of the agreement.

APSL is seeking, among others, a declaration that the unilateral termination by the GSA is unlawful and that the interference by the Ministry amounted to a material breach.

It is further seeking an interim injunction restraining the GSA from carrying out any works at the BILT project.

Also, it is seeking general and special damages against the Ministry

And an order for the refund of the additional sum of $16 million paid by the GPHA to Justmoh Construction.

Attached is the full arbitration notice;