The International Court of Arbitration has awarded a cost of $134 million and an interest of $30 million against the Government of Ghana over the cancellation of an Emergency Power Agreement with GCGP limited.
According to sources, GCGP Limited acquired a land at the Free Zones enclave in Tema, Republic of Ghana, to put up a power plant but the Akufo-Addo-administration terminated the agreement alongside other power purchasing agreements signed by the erstwhile Mahama-administration on the basis that the country did not need those power agreements.
The ruling by the International Court of Arbitration ordered the Government of Ghana to pay to “GPGC the full value of the Early Termination Payment, together with mobilisation, demobilisation and preservation and maintenance costs in the amount of US$ 134,348,661, together also with interest thereon from 12th 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.”
