A District of Columbia Court has awarded a $111,493,828.82 judgment against the Government of Ghana in favour of the Ghana Power Generation Company (GPGC) following the government’s failure to fully comply with a prior tribunal decision from the United Kingdom.
The court’s decision also mandates Ghana to pay post-judgment interest.
The judgment stems from a 2021 U.K. court ruling, which had previously awarded $140 million against Ghana for the termination of a power deal with GPGC.
The U.K. court had instructed the Ghanaian government to pay the Early Termination Payment of $134,348,661, along with mobilization, demobilization, and maintenance costs.
Additionally, Ghana was ordered to cover accrued interest, arbitration costs, and over $3 million in legal fees for GPGC.
Despite part payments, Ghana struggled to meet the instalment payment plan, prompting GPGC to seek enforcement of the judgment in the U.S.
The oil trader Trafigura, which had a claim against Ghana, was positioned to sell Ghana’s assets in the U.K. to recover owed funds.
On June 23, 2003, Ghana applied to set aside the U.K. court order, which was dismissed.
Subsequently, GPGC moved to enforce the judgment in the U.S. District Court on January 19, 2024, under the New York Convention and Chapter 2 of the Federal Arbitration Act.
Court documents indicate that Ghana was served with the petition on January 23, 2024, through Ghana’s Minister for Foreign Affairs and Regional Integration, Shirley Ayorkor Botchwey. The documents were confirmed to be delivered on January 29, 2024.
However, Ghana must still respond by the March 29, 2024 deadline and participate in the court proceedings.
Chief Judge James E. Boasberg ruled on August 6, 2024, affirming that the court had jurisdiction over the case under the New York Convention, which mandates recognition and enforcement of foreign arbitral awards.
The judge noted that the arbitral award arose from a commercial relationship and that Ghana had waived its sovereign immunity by agreeing to international arbitration in the power purchase agreement.
While pre-judgment interest was not awarded, the court’s decision includes post-judgment interest at the rate specified in U.S. codes, further increasing Ghana’s financial obligation.
