High Court Nullifies $33.3m Arbitral Award Against Justmoh Construction in Boankra Dispute
High Court nullifies $33.3 million arbitral award against Justmoh Construction, citing jurisdictional and procedural flaws in Boankra project dispute.
- Court overturns $33.3m arbitral award against Justmoh Construction.
- APSL ruled to lack legal capacity to initiate arbitration.
- Judges say funds were not a loan and arbitration process was flawed.
The High Court in Accra (Commercial Division 2) has set aside a US$33.3 million arbitral award that had been issued against Justmoh Construction Limited in a dispute relating to the Boankra Inland Logistics Terminal project.
The earlier award, delivered in December 2025, had directed Justmoh Construction to refund the amount to Ashanti Port Services Limited in connection with the project.
However, in a detailed 40-page ruling, Justice John-Mark Nuku Alifo overturned the decision, citing major jurisdictional and procedural flaws in the arbitration process.
Court’s Key Findings
The court based its ruling on three main grounds. First, it found that APSL lacked the legal capacity to initiate arbitration, stating that such capacity is fundamental to jurisdiction and cannot be corrected after proceedings have begun.
Second, the court ruled that APSL’s board was improperly constituted under its Shareholders’ Agreement. It noted that representatives from the Ghana Shippers’ Authority and the Ghana Ports and Harbours Authority were excluded from the meeting that authorised the arbitration.
Third, the court held that APSL had no valid cause of action at the time the arbitration was initiated, since its concession agreement had already been terminated by the government.
Background to the Dispute
The case stems from the Boankra Inland Logistics Terminal project, a key national infrastructure initiative aimed at improving cargo handling in Ghana.
- In August 2022, APSL engaged Justmoh Construction for Phase 1A of the project.
- In September 2022, US$33.3 million was paid to Justmoh as mobilisation funds sourced from the Ghana Ports and Harbours Authority (GPHA).
- In August 2023, the Ghana Shippers’ Authority terminated APSL’s concession over funding challenges.
- In October 2023, Justmoh terminated its contract, citing non-payment for certified work.
- APSL later initiated arbitration in December 2023 despite the collapse of the concession arrangement.
Dispute Over the $33.3 Million
A central issue in the case was whether the US$33.3 million constituted a refundable loan. The court found that the funds originated from GPHA as part of a share subscription arrangement, not a loan advanced by APSL.
Justice Alifo further held that APSL could not seek repayment of funds it did not directly provide, especially after failing to fulfil its contractual obligations, including achieving financial close.
Final Outcome
The court ruled that the arbitration process was fundamentally flawed under the Alternative Dispute Resolution Act, 2010 (Act 798). As a result, the US$33.3 million award was quashed, effectively relieving Justmoh Construction from liability in the dispute.
Story By Michael Ofosu-Afriyie, Kumasi.
