Nana Afum Dwamena lll
The Ghana Arbitration Centre (GAC), in a unanimous decision, has ordered Justmoh Construction Limited to refund US$33.3 million to Ashanti Port Services Limited as the outstanding balance of advance mobilisation payments arising from disputes over 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 is made.
Conversely, the tribunal 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.
On costs, the tribunal ordered Justmoh Construction Limited 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.
This amounts to US$226,875 and GH¢26,250, with no interest accruing on the costs award.
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 Ashanti Port Services Limited’s Notice of Arbitration.
This was followed by the respondent’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 comprising Emmanuel Amofa, Professor Richard Frimpong Oppong and Justice Nene A.O. Amegatcher, who served as chair.
Neither party raised any objection to the composition of the tribunal.
At a virtual arbitration management conference held 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, during which both parties, represented by counsel, made 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.
The proceedings then moved on to the substantive merits of the dispute.
A key issue before the tribunal was whether earthworks executed by Justmoh Construction were 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 and noted that Ashanti Port Services did not conduct its own independent assessment of the cost of the earthworks.
Justmoh Construction, on the other hand, relied on interim payment certificates, monthly progress reports, photographs, designs and correspondence from the independent consultant, Vision Consult.
The respondent also cited letters 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 had been executed and were 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, thereby settling the dispute over the contract’s termination.
All other claims and requests for relief by both parties were dismissed, bringing the arbitration proceedings at the Ghana Arbitration Centre to a close.
Ashanti Port’s stance after ruling
The Kwahu Nkwatia Benkumhene, Nana Afum Dwamena III, who also serves as the Chief Executive Officer of Ashanti Port Services Limited, has expressed satisfaction with the verdict delivered by the Ghana Arbitration Centre.
Speaking in an interview with the media, the traditional ruler said he accepts the decision of the tribunal and believes it provides clarity and closure to the matter.
According to Nana Afum Dwamena III, the ruling reflects the strength of the country’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, particularly 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 to maintaining confidence in the justice system.
He emphasised that accepting the verdict demonstrates maturity, responsibility and respect for the rule of law.
He further explained that prolonged disputes often stall development and create uncertainty, which negatively affects communities and investors.
A Daily Guide Report