Ghana has been slapped with another massive judgment debt, as the country is due to pay more than 70 million dollars to West Africa Gas Limited following a London Court of Arbitration verdict. The issue arose as a result of the Claimant, West Africa Gas Limited, terminating a Gas Sales Agreement between WAGL and the Republic of Ghana on 9th October 2015.
This latest judgment debt follows on the heels of a 170 million dollars judgment against the country following an erroneous termination of a power contract between the government of Ghana and GCGP.
The West Africa Gas Limited terminated the deal because of what they alleged were hurdles erected by the Ghanaian government that made it difficult to implement the contract.
West Africa Gas Limited claimed an initial recovery fee in excess of 1 million US dollars but then decreased its claim.
The London Court of Arbitration determined the following in a January 2021 ruling:
i. The Respondent shall pay the Claimant the sum of US$ 68,584,623.37 as the Recovery Fee under the GSA.
ii. From 22 April 2019 until payment, the Respondent shall pay the Claimant simple interest on the sum awarded in I above at the yearly rate of 6.5 percent.
iii. The Respondent agrees to pay the Claimant £200,000 in legal and other costs.
iv. The Respondent agrees to pay the Claimant £153,108.88 in Arbitration Costs.
v. The Defendant’s Counterclaim is now dismissed.
vi. All remaining claims, including the declaration claim and counterclaims, are denied.
