The University of Ghana has been fined by the United States Federal Court with $165 million judgement debt for wrongly terminating the Africa Integras Contract in 2018.
This was after Global insurer Chubb Ltd. Asked a New York Federal judge to confirm a $165 million arbitration award against the University after it defaulted on a flagship development partnership backed b he government.
According to the petition filed in the Southern District of New York, W.P Carey investment trust won the award in 2018 after the University of Ghana terminated an agreement to construct and maintain four new facilities and a dormitory on its Campus.
The award reflects the value of rent income that the new campus facilities would have generated, Chubb told the court.
SEC reports show that the $64 million partnership was signed in 2016, with a mortgage financing agreement from the U.S state department’s Overseas Private Investment Corp. (now Development Finance Corp.) of up to $41 million. The project was insured with a Chubb corporate Country risk policy.
According to a public information summary filed with OPIC, the project would help meet a demand for higher education in Africa. University press release said that the expansion would help attract and accommodate PHD students, transforming the school into a first-class research institution but the university was unable to procure a contractually required letter of credit, according to Chubb petition and moved to terminate the contract triggering arbitration in 2018.
According to Chubb’s petition on Thursday, the court has no basis to refuse confirmation of the award, which falls under the New York Convention.
Source: 3news
