ICC rejects Micheletti’s stadium rehabilitation claim against Ghana

An international arbitration brought by an international construction company, Micheletti Company Limited, against the government in May 2023, alleging damages for breach of contract for the renovation of the Accra Sports Stadium, has been denied by the International Chamber of Commerce (ICC).

The Attorney General of Ghana contended that the arbitration proceedings were statute-barred because the action had been brought outside of the time frame permitted by the Ghanaian Limitations Act, and the ICC Tribunal, which is made up of Shadrack Arhin, Justin Amenuvor, and President Sadaff Habib, upheld this argument in its partial jurisdictional award.

The respondent, the Government of Ghana, signed a contract with Waterville Holdings (BVI) Limited in April 2006 to renovate many sports arenas in the nation with a 40,000-seat capacity in order to get ready for the 2008 African Nations Cup.

The Accra Sports Stadium, El-Wak Stadium, and Baba Yara Sports Stadium in Kumasi, Ghana, were among the stadiums. Consar Limited was the local subcontractor for the Baba Yara Sports Stadium in Kumasi, and Micheletti, the claimant, was the local subcontractor for the repair of the Accra Sports Stadium in Accra, according to the agreement.

The Ghanaian government terminated an agreement with a contractor in August 2006 due to a lack of Cabinet approval. Negotiations with sub-contractors, Micheletti Co. Ltd. and Consar Ltd., continued the rehabilitation of stadia.

Subsequently, in 2023, arbitration proceedings were initiated by Micheletti for the alleged unpaid claims.

Micheletti claimed, among other reliefs, $400,000 in special damages for the government’s default, including interest, administrative fees, and arbitral costs. 

The ICC determined that it had jurisdiction to hear the case when it delivered its ruling on Ghana’s legal objections. The claimant had taken steps to inform the respondent before starting the arbitration proceedings that it intended to refer the dispute to a dispute adjudication board, but the respondent had disregarded those steps.

The tribunal ruled that the case was statute-barred under Ghanaian law, as it was filed after 2015, more than six years as permitted by Ghana’s Limitation Act, 1972 (NRCD 54), making the claim inadmissible.

The tribunal is also deliberating over the parties’ representations regarding the amount of costs that should be awarded to the government of Ghana following the dismissal of the case.