Ghana ordered to pay $70 million judgement debt to West Africa Gas Limited
- The Government of Ghana is facing another judgement debt case
- It has been ordered by a London Court of Arbitration to pay over 70 million dollars to West Africa Gas Limited
- The news comes on the back of a recent $170 million judgement debt case
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Ghana is facing another judgment debt of over 70 million dollars set to be paid to the West Africa Gas Limited (WAGL) following a London Court of Arbitration ruling.
According to a Starr News report, the court awarded against the government of Ghana a sum of US$ 68,584,623.37 with interest.
In its ruling, the court asked the Government of Ghana the pay the lump sum of over $68million including interests and other costs.
Source: UGC
The government has to pay the money to the company after it terminated its Gas sales agreement dated October 9, 2015, with Ghana for what it says were roadblocks created by the former.
According to the details in the January 2021 judgement published by Pulse.com.gh, WAGL agreed to a consultancy service agreement with Siport XXI in the construction of an FRSU Terminal at the port of Tema.
The company decided to terminate the contract because they were not allowed to do their work as preferred.
In its ruling, the court asked the Government of Ghana to pay the lump sum of over $68million in addition to interests and other costs.
"The Respondent do pay the Claimant simple interest on the sum awarded in
(i)above from 22 April 2019 at the annual rate of 6.5% until payment.
iv. The Respondent do pay the Claimant’s Legal and Other Costs in the sum of £200,000
v. The Respondent do pay the Claimant the Arbitration Costs in the sum of
£153,108.88."
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This news comes few weeks after a Commercial Court in London has instructed Ghana to pay a whopping $170 million in damages to the Ghana Power Generation Company (GPGC).
The court rejected a late appeal by the government of Ghana to set aside a $134million judgement debt awarded in favour of the power contractor, GCGP.
The judgement debt was awarded in favour of GCGP against Ghana by the London-based United Nations Commission on International Trade Law (UNCITRAL) Tribunal on January 26, 2021.
On June 24, Boakye Agyarko, former Minister of Energy stated that Ghana is better off with the US$170million judgement debt awarded against it in favour of the Ghana Power Generation Company (GPGC).
Reacting to the development, Agyarko justified the cancellation of the power agreement with the GPGC, explaining that per the wisdom of the review committee, the power agreement as they were if allowed, the country would pay at the end of the 13th year US$7.2billion in excess capacity charges.
Speaking on the judgement debt ruling, Dr Kwabena Donkor, a former minister of energy has vowed to fully cooperate with the CID’s investigations into the power purchase agreement with the Ghana Power Generation Company (GPGC).
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Source: YEN.com.gh
