In another ruling dated 15th January 2021, the Ghanaian government has been asked to pay West Africa Gas Limited (WAGL) at least $68 million in recovery costs and other fees following a London Court of Arbitration ruling. Last week, this comes as the country was asked to pay $170 million to the Ghana Power Generation Company (GPGC) Limited for the wrongful termination of the existing Power Purchase Agreement (PPA).
Ghana was accused of terminating a Gas Sales Agreement (GSA) with WAGL in 2015. WAGL had signed a GSA with Siport XXI to construct an FRSU Terminal at the port of Tema. WAGL was contractually obliged to incur substantial infrastructure and other costs to meet the terms of the GSA but claimed there were roadblocks created by the Government of Ghana.
In the ruling, the Court noted that both parties to the GSA failed to fulfil the conditions as stipulated in the GSA. However, the issue was if, WAGL could terminate the GSA without notice. The Judge ruled that the sellers right to terminate is not conditional hence WAGL was within its right to terminated the GSA when it did and claim its recovery costs. The ruling held that ”WAGL is entitled to the sum of for the FRSU hires costs of $68,584,623.37 as agreed in the Settlement as part of the Recovery Fee”.