UK court faults Ghanaian government over ‘intrinsically weak’ appeals in $134M judgment debt to Trafigura
Published:
3 months ago
Source:
GhanaWeb
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's Ghana Power Generation Company (GPGC).
The ruling follows Ghana's failure to challenge a $134 million judgment awarded by English courts, stemming from a terminated power purchase agreement. 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.
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%.
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. Despite the ruling, Ghana made only partial payments, leaving $111.5 million in outstanding debt.