Transport Ministry sued for $3.6b in damages over termination of Boankra Inland Port contract

Ashanti Port Services Limited (APSL), a private consortium formerly involved in the construction of the Boankra Inland Port Project, has taken legal action against the Ministry of Transport for terminating their contract.

 The consortium is seeking damages totaling over Three billion dollars, which they claim is the projected profit margin over the 27-year operating period of the project.

According to Ashanti Port Services Limited, the contract was terminated by the Ghana Shippers Authority working through the Ministry of Transport, despite the consortium’s efforts to fulfill their obligations under the Build, Operate, and Transfer agreement.

APSL alleges that the termination was unlawful and resulted from various interferences and breaches by the respondent.

The Chief Executive Officer (CEO) of the consortium David Afum is seeking a declaration that the termination was unlawful, an interim injunction to halt any work at the project site, general damages for breach of the contract, and reimbursement of expenses incurred.

 They are also requesting a refund of funds paid by the Ghana Ports and Harbours Association for shares in APSL, as well as the projected income for the operating period of the project.

APSL is hoping for a favorable ruling from the Court of Arbitration, which would include the restoration of the contract in their favor and an award of legal fees.

 The lawsuit highlights the complexities and challenges faced by private entities in infrastructure projects in Ghana, and the potential implications of contract terminations on both parties involved.

Source: Starrfm