Cancellation of Emergency Power Agreement: Court of Arbitration slaps Ghana with $164m Judgement Debt

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 on the excuse that the country did not need those power plants.

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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 US$ 134,348,661, together also with interest thereon from 12 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 will also pay other related cost of US$ 3,309,877.74 at the rate of LIBOR for three-month US dollar deposits, compounded quarterly.”