Ashanti Port Services Limited (APSL) has initiated arbitration proceedings at the Ghana Arbitration Centre, against the Ministry of Transport (MoT) and the Ghana Shippers Authority (GSA).
APSL is asking MoT and GSA to pay more than US$3 billion for unlawful termination of Concession Agreement between it and MoT.
On September 25, 2020, APLS and MoT acting through GSA, signed the Concession Agreement, aimed to create a vitalinfrastructure linking the ports of Tema and Takoradi, to the inner parts of Ghana and the landlocked countries of Burkina Faso, Mali, and Niger.
A copy of the notice of arbitration, sighted by the Ghanaian Times, said the claim revolves around the purported unlawful termination of the Concession Agreement (CA) between APSL, the claimant, and MoT, the respondent.
This is pursuant to letters dated July 5, 2023, and August 21, 2023, for alleged failure by claimant to cure relevant breaches and/or defaults, including failure to achieve Financial Close within the Cure Period.
It is the case of the claimant that the purported termination of the agreement by the respondent, resulted in respondent unlawfully taking possession and control of the Boankra Integrated Logistics Terminal (BILT) Project site infrastructure forthwith; controlling any materials, construction plant, stores etc., on the site.
It also resulted in preventing APSL as Concessionaire from entering the site and unlawfully succeeding the Concessionaire under the BI LT Project.
The claimant stated that following an international bidding process, the MoT awarded the Concessionaire rights for the development of the BILT Project on a Build Operate and Transfer (BOT) basis to Afum Quality Limited (AQL).
It said the BOT was for 30 years to be managed by the Concessionaire; the first three years for the construction of the BILT Project, and the remaining 27 years for Operations with a projected Profit Margin of US$3,683,720,785.
The claimant stated that unlawful interferences by respondent commenced when the Ghana Ports and Harbours Authority (GPHA), under the directive of the Respondent, sought to acquire shares in APSL. Despite APSL’s hesitation, 39 per cent of its shares, valued at US$49 million were sold to GPHA.
It said a share Purchase Agreement or Shareholders Agreement was subsequently executed on September 11, 2022 between the claimant and GPHA, and with an obligation to contribute towards the shares representing the 10 per cent carried interest of GSA.
APSL said after the shares were sold to GPHA upon the intervention of the respondent, the spirit initially underlying this idea by respondent was for the proceeds to be reinvested into the BI LT Project.
It said this, however, turned out to be the case as the respondent has acted in bad faith.
The claimant said a search at the Office of the Registrar of Companies of Ghana on January 25, 2024 revealed that, AQL holds 64,260,000 shares in the Concessionaire and GPHA also holds 49,140,000 shares in the same.
According to the claimant, after the execution of the Concession Agreement, MoT compelled it to organise a sod-cutting ceremony, prior to fulfilling preconditions necessary for the performance of its obligations under the Concession Agreement, thus putting claimant to huge financial expenses.
BY MALIK SULLEMANA