UG hit with $160m judgment debt
The ruling in London dismissed the two claims by the University of Ghana and awarded termination costs of more than $160 million to the project.
In 2014, the University of Ghana 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 to a 25-year Build, Operate and Transfer (BOT) contract.
After Prof Aryeetey handed over, the new university leadership questioned the deal and the cost of the project.
However, Prof. Aryeetey insisted the processes leading up to the signing of the agreement with Integras were transparent, with all relevant stakeholders being kept informed of all developments.
“There is no scandal at all in relation to the $64.4 million contract. Africa Integras signed an agreement that they were supposed to spend that money. As far as I know, by the time the project stopped, they had spent about $28 million. How does a phony company come and spend $28 million? You can see the buildings coming up and yet it has been written that I have signed an agreement with a phony company.” Professor Aryeetey said.
The argument of UG was not accepted by the arbitrator.
The Arbitrator found nothing wrong with the process followed in preparing the Concession Agreement.
The ruling in London delivers a huge image blow to the University of Ghana and a major financial loss to Ghana.
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