Posted: Friday 4th April 2014 at 8:00 am

Osagyefo Barge Is Still Property Of Ghana-AG

3700216191499 232889 Osagyefo Barge Is Still Property Of Ghana AGMrs Marieta Brew Appiah-Oppong, Minister of Justice and Attorney-General, says Ghana is not out of the case Balkan Energy brought against it for abrogating the contract involving the operation of the Osagyefo Barge.

The International Court of Arbitration in Hague had slapped $12 million fine on Ghana for terminating the contract.

Addressing the media on Thursday, Mrs Appiah-Oppong said: “Ghana is not down and out…Osagyefo Barge is still the property of… Ghana.”

She said publications in quarters of the media that government is saddled with huge payments of judgement debt tantamount to “misrepresentation of fact”.

The Minister said government would coordinate with its external solicitors to consider the ruling.

The position for government would also be made available to the public after going through the laid down process, she added.

In a related development, Mrs Appiah-Oppong said in a statement copied to the Ghana News Agency in Accra that the tribunal had rejected claims for $3 billion against Ghana.

She said in a substantial decision sued on Tuesday, April 1, the Permanent Court of Arbitration in The Hague rejected claims against Ghana, brought by project developer Balkan Energy (Ghana) Limited, an affiliate of Texas-­‐based Balkan Energy Company.

She said Balkan had claimed damages totaling more than $3 billion based on a tolling fees provision in a long­‐term Power Purchase Agreement entered into in 2007 between Balkan and the Government’s Ministry of Energy (PPA).

“While upholding the validity of the PPA, the Tribunal found that Balkan had failed to perform its obligations under the PPA, which required Balkan to refurbish and commission the Osagyefo Power Barge, a 125 MW dual fired power barge and associated facilities in Effasu in the Western Region,” she said.

The statement said the Tribunal also rejected Balkan’s claim for more than $40 million in damages for unjust enrichment.

It added: “The Tribunal concluded that the evidence did not demonstrate that Balkan had conferred any demonstrable benefit on the Government.

“Instead, the Tribunal awarded Balkan limited damages of $12 million for work performed and rejected the bulk of Balkan’s claim of alleged expenditures.

“Finally, the Tribunal held that the PPA was terminated and returned control of the Barge to the Government.

“The Government was further awarded $300,000 US in damages, the maximum amount of damages that it could award the Government under the PPA.

“The Tribunal determined that the costs of the arbitration are to be shared between the parties.”

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