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The government of Ghana has been ordered by a U.S. district court to pay $111.5 million, along with accruing interest, to energy firm Trafigura\u2019s Ghana Power Generation Company (GPGC).\u00a0<\/p>\n
The ruling follows Ghana\u2019s failure to challenge a $134 million judgment awarded by English courts, stemming from a terminated power purchase agreement.<\/p>\n
According to myjoyonline.com report, the origins of the dispute trace back to February 18, 2018, when Ghana prematurely ended its contract with GPGC, a subsidiary of Trafigura. This led to a UK tribunal’s Final Award on January 26, 2021, which found Ghana in breach of its contractual obligations.\u00a0<\/p>\n
The report explained that the tribunal ordered Ghana to pay GPGC $134.3 million as an Early Termination Payment, with interest at six months USD LIBOR plus 6%.\u00a0<\/p>\n
Additionally, Ghana was instructed to cover GPGC’s arbitration fees and expenses, totaling $3.3 million, with interest at three-month USD LIBOR, compounded quarterly.<\/p>\n
Despite the ruling, Ghana made only partial payments, leaving $111.5 million in outstanding debt. In a memorandum opinion dated August 6, 2024, Chief Judge James E. Boasberg of the District of Columbia Court highlighted Ghana\u2019s repeated failures to challenge the UK judgment.\u00a0<\/p>\n
Ghana had initially secured an extension to appeal the tribunal\u2019s decision in English courts but missed the deadline. A subsequent request for a second extension was denied, with UK courts labelling Ghana\u2019s arguments as “intrinsically weak.”<\/p>\n
As a result of Ghana\u2019s inaction, Judge Boasberg granted a Motion for Default Judgment in favour of GPGC, effectively reinforcing the financial obligations imposed by the original UK tribunal ruling.<\/p>\n
AM\/OGB<\/p>\n
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