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Ghana slapped with $137.9million judgement debt over power purchase contract

BY: Emmanuel Ebo Hawkson
Godfred Yeboah Dame - Minister designate for Justice and Attorney-General
Godfred Yeboah Dame - Minister designate for Justice and Attorney-General

An arbitration tribunal has ordered the government of Ghana (GoG) to pay $137.9million to Ghana Power Generation Company (GPGC), an independent power producer (IPP), for terminating a power purchase agreement (PPA) between the two parties in 2018.

Out of the amount, $134,348,661 represents early termination payment claim, which in itself is made up of $69,361,680 as early termination fee, $58,492,005.562 for mobilisation cost, $6,462,528 as demobilisation cost and $32,448 as preservation and maintenance cost.

The arbitration tribunal also awarded $614,353.86 against Ghana as the cost of the arbitration, and also awarded cost of $3million against Ghana, which is the legal fees expended by GPGC during the arbitration.

more to follow...