APSL’s Boankra contract was mutually terminated – Ministry of Transport

The Chief Director of the Ministry of Transport (MoT), Mabel Asi Sagoe, has stated that the contract with Ashanti Port Services Limited (APSL), the concessionaire selected to develop the Boankra Integrated Logistics Terminal (BILT), was terminated by mutual agreement.

Speaking to members of the Parliamentary Select Committee on Roads and Transport, Madam Sagoe said, APSL was unable to meet the financial terms of the contract despite several engagements and extensions, leading to the termination.

This project, owned by the Ghana Shippers’ Authority (GSA), with support from the Ghana Ports and Harbours Authority (GPHA) and the Ministry of Transport, is now funded by the Government of Ghana.

Background

The visit by the Select Committee on Roads and Transport on Wednesday, 3rd July, 2024, was in response to media reports that APSL had filed a writ at the Ghana Arbitration Centre invoking the powers of the United Nations Commission on International Trade Law Arbitration to retrieve damages amounting to over US$3 billion for contract termination by the Ghana Shippers’ Authority.

The committee expressed concern and sought to ascertain the veracity of the case.

Termination Reason

Madam Sagoe explained that the concessionaire was bound by the contract to fully fund the project. Unfortunately, the COVID-19 pandemic impacted their ability to raise the necessary funds. After the pandemic, they continually cited COVID-19 as the reason for their delays.

Despite being given multiple extensions, they still failed to secure the funding, which led to the termination. She added that APSL had not made any attempts to invest funds into the project. During the sod-cutting ceremony, they provided funds for that specific event, but the requested detailed financial statements have not been received.

Madam Sagoe said, “Even before the contract was terminated, we gave them ample time and informed them in May 2023 that if they failed to meet the financial clause, we would terminate the contract. Despite this, they did not comply, leading to the termination in August 2023, to which they agreed.”

Following the termination, MoT through GSA sent a proposal to the Public Procurement Authority (PPA) and the Ministry of Finance for Justmoh Construction Ltd to be engaged to continue work on the project.

Attorney General’s Opinion

Madam Sagoe added, “So far, we have met with the Attorney General due to a petition sent to them. The Attorney General has given us their opinion that we followed the correct process. The Ministry of Finance has also requested a report, which we have submitted. Both entities have confirmed that we have done the right thing.”

Adding that the Ministry has not received any suit on the matter from APSL or any other body.

BILT Tour

During the visit by the committee to BILT to ascertain work done, the project consultant, Dr. John York stated the project’s progress as follows: Phase 1, valued at $150 million, has reached 70% completion.

The combined phases 1 and 2, totaling $308 million, have achieved 40% completion. Phase 1 is slated for commissioning by November 2024, while the entire project is expected to become fully operational in 2026.

Chairman of Committee

Mr Kennedy Nyarko Osei, Chairman of the Committee, commended the Ministry of Transport, the Ghana Shippers’ Authority, and the contractor, Justmoh Construction Ltd, for their hard work. “We are impressed, we are happy as a committee, and we will inform the house. We need to find money to support the contractor to get the job done and complete it as scheduled,” he told the media.

Ranking Member of Committee

Mr Isaac Ajei, Ranking Member of the Committee, emphasized the need for increased engagement with the community. He suggested that this engagement would help community members become ambassadors to protect and support the ongoing projects. He also recommended employing more community members for various tasks at the sites.

Mr. Ajei commended Justmoh Construction Ltd for their work and urged that all necessary measures be taken to complete the regularization of their contract.

The Ministry of Transport is actively working to regularize Justmoh Construction’s contract, with necessary approvals from the Public Procurement Agency and the Ministry of Finance.

Justice Amoh, the CEO of Justmoh Construction, pledged the company’s commitment to finishing the project on schedule, highlighting its national importance and potential benefits. He also urged members of parliament to expedite the release of the required funds to ensure the project’s success.