$134 million judgment debt hits Ghana over cancellation of GCGP power deal

• Posted on February 15, 2021February 15, 2021
• by Nana Kwesi Coomson
• Comment

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

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.

-3news