The International Court of Arbitration has awarded a cost of $134 million and an interest of $30 million against the Government of Ghana over the cancellation of an Emergency Power Agreement with GCGP limited.
The Contract was cancelled under the former Energy Minister Boakye Agyarko as part of several other energy contracts cancelled by the NPP on the basis that the country did not need those power agreements.
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 $134,348,661, together also with interest thereon from November 12, 2018 until the date of payment, accruing daily and compounded monthly, at the rate of LIBOR for six-month US dollar deposits plus 6 per cent.”
The Government of Ghana was also to pay GPGC an amount of “$309,877.74 in respect of the Costs of the Arbitration, together with $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 $3,309,877.74 at the rate of LIBOR for three-month US dollar deposits, compounded quarterly.”
