The University of Ghana is expected to pay a whopping $160 million in termination costs to Africa Integras after losing an arbitration in London in relation to the Africa Integras Project.
Four years ago, the University entered into a contract with Africa Integras, a private investment company headquarterrd in New York, to construct five buildings for the school on a Build Operate and Transfer (BOT) basis.
The project was to consist of the construction of an expanded facility for the College of Humanities, a complex for the new College of Education, a new building complex for the College of Basic and Applied Sciences, a complex to house the Institute of Technology and Applied Science and a building for the College of Health Sciences to aid the university in relocating the medical school to the UG campus from its present location in the Korle Bu Teaching Hospital.
The project was initially signed as a 25-year Build, Operate and Transfer (BOT) contract under the leadership of the then-Vice-Chancellor, Prof. Ernest Aryeetey, however, it was changed when he exited office.
The new Vice Chancellor, Professor Ebenezer Oduro Owusu, sanctioned the project, citing issues with viability and favorableness with the project contract.
As a result of the disagreement between the current Vice-Chancellor (VC) and his predecessor over the viability, the construction of the $64 million infrastructure project was halted.
The standoff led to the matter being sent to a court in London to ensure a resolution was reached.
However, it has now emerged that the University of Ghana has lost the arbitration and has been ordered to pay a whopping $160 million to Africa Integras as termination costs.
The Graphic Online reports that the Arbitrator in the dispute came out with a definitive and binding ruling in London on August 2, 2018.
The Arbitrator is said to have rejected the UG argument that the Concession Agreement signed by the two parties was not enforceable.
Also, the Arbitrator is said to have found nothing wrong with the process followed in preparing the Concession Agreement.
The ruling leaves the UG and government with a huge $160 million judgement debt to pay.