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Expect more legal judgements against Ghana
- UK Court rules in favour of IPP
- Ghana to pay $170 million
Energy Associates has said the Ghanaian government should expect more judgements against the country. The United Nations Commission on International Trade Law (UNCITRAL) Tribunal had awarded almost $170 million, including interest in a lawsuit filed by Ghana Power Generation Company (GPGC) Limited for the wrongful termination of the existing Power Purchase Agreement (PPA).
The administration of President Nana Akufo-Addo in 2017 cancelled existing PPAs signed during the previous administration of President John Mahama. Parties to the PPAs have instituted legal actions against the government. While GPGC has won its legal battle against the Ghanaian government, other firms including, Beijing Everyway Traffic, and Lighting Technology Company Limited, have begun legal proceedings against the government for the wrongful termination of their PPAs.
”Perusing the contract signed between the then Power Ministry and Ghana Power Generation Company in 2015, the Ahenkorah Committee recommendation and decisions thereafter is not surprising that judgement was awarded against Ghana”, Energy and Associates said in a statement. ”It is quite baffling that the Minister at the time Mr Agyarko went against the Ahenkorah Committee’s recommendations to terminate the contract, what motivated this move must be made known”, the statement continued.
”We must be very careful with these decisions because it hurts the country’s international image in the investor community”, the statement read.