APSL’s Boankra Contract was mutually terminated – Ministry of Transport
Chief Director of the Ministry of Transport (MoT), Mabel Asi Sagoe, has said 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, Mable Sagoe said, APSL was unable to meet the financial terms of the contract despite several engagements and extensions, leading to the termination.
The Boankra Integrated Logistics Terminal (BILT) project, is owned by the Ghana Shippers’ Authority (GSA), with support from the Ghana Ports and Harbours Authority (GPHA) and the Ministry of Transport, is funded by the Government of Ghana.
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 $3 billion for contract termination by the Ghana Shippers’ Authority.
Briefing the select committee, Mabel Sagoe explained the need for the tarnation.
“We have requested that they submit the amount that they have spent so far with respect to the event, but we still haven’t received any from them. Even before the contract was terminated, we gave them ample time. There was a letter we wrote, and that was after a meeting with them, and we all agreed in May, that should they fail to achieve the financial close, we were going to terminate by August, and they all agreed,” she revealed.
Project Consultant, Dr. John York, briefed members of the committee on work done so far for Phase 1 which includes civil works, earthworks, road networks, drainage systems, container freight terminals, container handling facilities, bonded warehouses, and admin and operations blocks, is 40 percent complete.
Chairman of the Committee, Kennedy Nyarko Osei, commended the Ministry of Transport, Ghana Shippers’ Authority, Justmoh Construction Ltd, for their hard work.
“The Chief Administrator of the Ministry has spoken, and she made a categorical statement that they have gone to the PPA to seek approval, they have gone to the Ministry of Finance to get all that they needed to do. Maybe, there are a few things that they have to wrap up, but in terms of regularization, they have gotten approval from the PPA, which is the most important thing that they have gotten as part of the challenges. Maybe, after the response from the Ministry, when they go to the next review, they will review whatever they have written in there. I think that is the most important thing,” he added.
Ranking Member of the Committee, Isaac Ajei called for increased engagement with the community.
The CEO of Justmoh Construction Justice Amoh pledged the company’s commitment to finishing the project on schedule.
