A Chinese-based construction company is seeking $55 million from Ghana for canceling a contract it was awarded to develop an intelligent traffic management system for the country.
The company was contracted to implement the Accra intelligent traffic management project worth 100 million dollars after Parliament’s approval in 2018.
The Chinese company, Beijing Everyway, worked on the provision and installation of a traffic management system but the same contract was awarded to another Chinese-based company by the government of Ghana.
In 2020, the company filed a suit against the Government of Ghana in the London court of international arbitration.
The Chinese-based company is being represented by Zhong Lun Law Firm in Beijing.about:blank
The lawyers believe that the claim against Ghana is the first against an African country by a mainland Chinese investor.
Inusah Fuseini warns
Former Roads and Highways Minister Inusah Fuseini cautioned against the payment of judgment debt by the Government of Ghana if Parliament re-endorses a traffic management project already ratified two years ago.
“The project that is being implemented is coming back to Parliament and if even we allow them to go ahead, you can be rest assured that what they are going to do will be a candidate for judgement debt,” Fuseini said.
His caution comes after a Bill was re-laid before Parliament but this time with a contract agreement which is between the Government of Ghana, represented by the Ministry of National Security, Huawei Technologies Company Limited, and the China National Import and Export Corporation.
The Bill was passed under a certificate of urgency.
Following that, Beijing Everyway Company Limited indicated in a statement that it passed due diligence by all relevant authorities such as the Ministry of Roads, Ghana Embassy in China, China Development Bank, and various Chinese government agencies.
The company added that it was given the clearance to commence the project by both the Ministry of Finance and the Ministry of Roads in 2019.
Based on that the Beijing Everyway said it had submitted a 10 million dollars of Performance Security to the Ministry and shipped over 50 containers of goods to Ghana for the implementation of the project.
Beijing Everyway revealed that it has since been on-site for the civil works and installation.