A U.S. district court document has revealed that Ghana’s legal team failed twice to challenge a $134 million judgment awarded to the energy firm Trafigura by English courts.
The debt arises from a power purchase agreement between Trafigura’s GPGC and the Ghanaian government.
The dispute dates back to January 26, 2021, when a U.K. tribunal issued a Final Award.
The tribunal found that Ghana had breached its contractual obligations by terminating the power purchase agreement with GPGC on February 18, 2018. As a result, Ghana was ordered to pay $134,348,661 as an Early Termination Payment, with interest at six-month USD LIBOR plus 6%.
Additionally, Ghana was required to reimburse GPGC’s arbitration fees and expenses amounting to $3,309,877.74, accruing interest at three-month USD LIBOR, compounded quarterly.
Despite the ruling, Ghana made only partial payments totalling $1,897,692.40, leaving an outstanding balance of $111,493,828.92, which continues to accrue interest.
In a memorandum opinion dated August 6, 2024, Chief Judge James E. Boasberg of the District of Columbia court disclosed that Ghana attempted to challenge the U.K. judgment in American courts after missing deadlines in the U.K.
Judge Boasberg noted that Ghana initially secured an extension to challenge the award but missed the extended deadline. A subsequent request for an additional extension was denied, with U.K. courts deeming Ghana’s challenge grounds “intrinsically weak.”
As a result of Ghana’s default, Judge Boasberg 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.
This decision compounds Ghana’s financial burden from the original U.K. tribunal ruling.
