[ 2021-02-15 ]

Ghana slapped with $134 million judgment debt over cancellation of GCGP
Ghana has been hit with a $134 million judgement
debt over the cancellation of its Emergency Power
Agreement with GCGP Limited.

The International Court of Arbitration in its
ruling on the matter put before it in 2019 also
said the judgement debt comes with a $30 million
interest payment obligation.

The contract, signed in 2015 was among those
cancelled by former Energy Minister, Boakye
Agyarko with the reason that they were not needed
and were only going to further lead to the
ballooning of Ghana’s debts in the energy
sector.

The ruling by the International Court of
Arbitration ordered the government to Ghana to pay
to “GPGC the full value of the Early Termination
Payment, together with Mobilization,
Demobilization and preservation and maintenance
costs in the amount of US$ 134,348,661, together
also with interest thereon from 12 November 2018
until the date of payment, accruing daily and
compounded monthly, at the rate of LIBOR for
six-month US dollar deposits plus six per
cent(6%).”

The Government of Ghana was also to pay GPGC an
amount of “US$ 309,877.74 in respect of the
Costs of the Arbitration, together with US$
3,000,000 in respect of GPGC’s legal
representation and the fees and expenses of its
expert witness, together with interest on the
aggregate amount of US$ 3,309,877.74 at the rate
of LIBOR for three-month US dollar deposits,
compounded quarterly.”

Ghana’s Energy Minister in cancelling the deal
said the decision was justified because among
other things, GPGC had started construction
activities on site without siting and construction
permits and those activities were illegal.

Source - Citinewsroom

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