An International court is asking the University of Ghana to pay $160million judgment debt for unlawfully terminating a contract with Africa Integras. The project started under the regime of the former Vice-Chancellor, Professor Ernest Aryeetey in 2014.
Africa Integras, a company that works with government, investors, and banks to secure financing for education-based projects. In 2014, the company was awarded a contract by the University of Ghana to construct 1,000 new students’ hostel beds for undergraduate and post-graduate students on the Legon campus.
The ruling dismissed the two claims by the University of Ghana and awarded termination costs of more than $160 million to the project developers.
The University, back in 2014, entered into a Public Private Partnership (PPP) agreement with Africa Integras to invest US$64 million in the construction of 1,000 new students’ hostel beds for undergraduate and post-graduate students on the Legon campus.
The project was structured as a 25-year Build, Operate and Transfer (BOT) contract.
The Arbitrator, however, did not accept the UG argument that the Concession Agreement signed by the two parties was not enforceable.
The University of Ghana had sought to present the agreement as not being enforceable, claiming that its own procedures followed in preparing the Concession Agreement were flawed and did not follow due process.
The Arbitrator found nothing wrong with the process followed in preparing the Concession Agreement, hence it's ruling.
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