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Ghana has been slapped with $ 134 million in judicial debt following the cancellation of its emergency electricity deal with GCGP Limited.
The International Court of Arbitration, in its ruling on the issue before it in 2019, also said the debt was accompanied by an interest payment of $ 30 million.
The contract, signed in 2015, was among those canceled by former Energy Minister Boakye Agyarko on the grounds that they were unnecessary and would only lead to increased debt for Ghana in the energy sector.
The decision of the International Court of Arbitration ordered the Government of Ghana to pay the “GPGC the full value of the early termination payment, as well as the mobilization, demobilization and conservation and maintenance costs in the amount of US $ 134,348,661, together with interest thereon. from November 12, 2018 to the date of payment, accrued daily and compounded monthly, at the rate of LIBOR for six-month deposits in US dollars plus six percent (6%). ”
The Government of Ghana was also to pay GPGC an amount of “US $ 309,877.74 for the costs of the arbitration, as well as US $ 3,000,000 for the legal representation of GPGC and the fees and expenses of its witness. expert, as well as interest on the total amount of US $ 3,309,877.74 at the LIBOR rate for three-month deposits in US dollars, compounded quarterly. ”
The Ghanaian Energy Minister, in canceling the agreement, said the decision was justified because, among other things, GPGC had started construction activities at the site without a site and building permit and these activities were illegal. .
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