A U.S. district court document reveals that Ghana’s legal team twice failed to challenge a $134 million judgment awarded to energy firm Trafigura by English courts.
This debt stems from a power purchase agreement between Trafigura’s GPGC and the Ghanaian government.
The case dates back to January 26, 2021, when a UK tribunal issued a Final Award, finding that Ghana had breached its contractual obligations by terminating the power purchase agreement with GPGC on February 18, 2018.
The tribunal determined that Ghana owed $134,348,661 as an Early Termination Payment, with an interest rate of six months USD LIBOR plus 6%.
Additionally, Ghana was ordered to reimburse GPGC’s arbitration fees and expenses, totalling $3,309,877.74, with an interest rate of three-month USD LIBOR, compounded quarterly.
Despite the ruling, Ghana only made partial payments, amounting to $1,897,692.40, leaving $111,493,828.92 in arrears accruing interest.
In a memorandum opinion dated August 6, 2024, Chief Judge James E. Boasberg of the District of Columbia court disclosed that Ghana sought to challenge the UK judgement in American courts after missing deadlines to do so in the UK.
According to Judge Boasberg, Ghana initially obtained an extension to challenge the Award in the English courts but missed the extended deadline.
A subsequent request for a second extension was denied, with UK courts deeming Ghana’s grounds for challenge as “intrinsically weak.”
In response to Ghana’s default, Judge Boasberg has now granted a Motion for Default Judgment in favour of the Ghana Power Generation Company (GPGC), awarding the firm $111,493,828.92 plus mandatory post-judgment interest, further compounding the financial burden on Ghana from the original UK tribunal ruling.
Source: Blessed Sogah