- UNCITRAL gives judgement against Ghana
- Awards $170 million for breach of PPA
The United Nations Commission on International Trade Law (UNCITRAL) tribunal has awarded the sum of $170 million against the Government of Ghana for the wrongful termination of the Power Purchase Agreement between the Ghanaian Government and Ghana Power Generation Company (GPGC) Limited, an Independent Power Producer (PPA).
In its judgement, UNICITRAL stated that the Government of Ghana did not have any basis for the termination of the PPA with GPGC. ”GoG [The government] has not been able to adduce any statute or regulation, including the Energy Commission Act, which addresses the requirement for any such additional construction permit”, the Tribunal ruled.
The Ghanaian government failed to appeal the judgement of UNCITRAL within the 28-days appeal period under British Law. They, however, applied for an extension to file an appeal, three days to the deadline. Representatives of the Ghanaian government filed twice for an extension of the appeal period but were refused. In his ruling, Justice Butcher refused the application for a second extension because the excuses were weak.
Ghana now faces an onslaught of lawsuits by other IPPs whose PPAs were terminated by the government.