…in Boankra Inland Port dispute
The High Court in Accra, Commercial Division 2, has quashed a US$33.3million arbitral award previously issued against Justmoh Construction Limited.
The original award, granted in December 2025, had ordered Justmoh to refund the multimillion-dollar sum to Ashanti Port Services Limited (APSL) in relation to the Boankra Inland Logistics Terminal project.
In a comprehensive 40-page ruling, Justice John-Mark Nuku Alifo set aside the award – citing fundamental jurisdictional and procedural failures.
The court’s decision to overturn the award rested on three principal legal grounds: lack of legal capacity, improper board composition and absence of a cause for action.
Under the first ground, the court found that APSL lacked authority to initiate arbitration. Justice Alifo ruled that “capacity goes to the heart of jurisdiction”, adding that a company cannot remedy a lack of authority midway through legal proceedings.
On the issue of improper board composition, the court held that evidence showed APSL’s board was not properly constituted under its shareholders’ agreement.
Crucially, directors representing the Ghana Shippers’ Authority and Ghana Ports and Harbours Authority (GPHA) were excluded from the meeting that purportedly authorised the legal action.
The court further ruled that APSL had no valid legal claim against Justmoh, as government had already terminated APSL’s concession agreement before the arbitration proceedings commenced.
Background
The dispute centres on the Boankra Inland Logistics Terminal, a strategic national infrastructure project intended to improve cargo handling and inland logistics operations.
Timeline of events
August 2022 – APSL awarded Justmoh Construction the contract for Phase 1A of the project.
September 2022 – US$33.3million was transferred to Justmoh as mobilisation funds, sourced from GPHA.
August 2023 – Ghana Shippers’ Authority terminated APSL’s concession over its failure to secure financing.
October 2023 – Justmoh terminated its contract with APSL, citing non-payment for certified works.
December 2023 – APSL initiated arbitration despite the termination of its concession agreement.
US$33.3m dispute
A central issue in the case was the nature of the US$33.3million payment. While APSL sought to recover the funds as a refundable loan, the court found that the money originated from GPHA as part of a share subscription.
Justice Alifo noted that APSL could not demand a refund for funds it had not directly provided, particularly after failing to fulfil its own contractual obligation to achieve financial close.
Ruling
The court stated that the matter was a supervisory application under the Alternative Dispute Resolution Act, 2010 (Act 798).
By ruling in favour of Justmoh Construction, the court explained that the arbitration process was fundamentally flawed from the outset, effectively shielding the construction firm from the US$33.3 million liability.
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