General

Ghana to pay WAGL over $70m in another Judgment Debt

The Government of Ghana(GoG) is in another legal quagmire after a London Court of Arbitration awarded over 70 million dollars in Judgment debt against it for wasted cost incurred through a Gas Sales Agreement in 2015.

The dispute arises out of the termination by the claimant, West Africa Gas Limited
(BVI), of a Gas Sales Agreement dated 9 October 2015 (“GSA”) made between WAGL and the Republic of Ghana (“GoG”).

The Notice of Termination was received by GoG on 30 April 2019. It included the original invoice seeking a Recovery Fee in excess of US$ 1,000,000,000.

Documents available to Kasapafmonline.com reveals that West Africa Gas Limited went on the path of terminating the contract after what they claim were impediments put in their way by the GoG which ultimately frustrated the execution of the contract.

At a ruling in January 2021, the London Court of Arbitration declared as follows;

i. The Respondent do pay to the Claimant the sum of US$ 68,584,623.37 as the
Recovery Fee under the GSA.

ii. 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.

v. The Counterclaim is dismissed.

vi. All other claims, including the claim for a declaration and counterclaims are
rejected

This latest judgment debt comes after the country was hit with over 170 million judgment debt following a power contract agreement between the Government of Ghana and GCGP that was wrongfully terminated.

Source: Kasapafmonline.com

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *