Ghana will be paying another judgment debt to the West Africa Gas Limited to the tune of $70 million.
This follows the termination by the Claimant, West Africa Gas Limited of a Gas Sales Agreement on 9 October 2015 between WAGL and the Republic of Ghana. The company terminated the contract following claims that there were obstructions by the government of Ghana which made it difficult for them to execute the contract.
Portions of the ruling said “In accordance with Article 28.1 of the LCIA Rules the LCIA Court has determined the costs of the arbitration (other than the legal costs of the parties) in the total sum of £ which is made up as follows: – Registration fee £1,750.00, LCIA Administrative charges £27,211.67, Tribunal’s fees and expenses £249,288.18, Total costs of arbitration £278,249.85
“Towards these costs, WAGL has paid £153,108.88 which includes the Registration fee, deposits lodged, interest accrued, and GoG has paid £125,140.97, which includes deposits lodged and interest accrued. Total deposits lodged by the parties therefore amount to £278,249.85 of which £278,249.85 has been applied to the costs of the arbitration as set out above. There is therefore no surplus to be refunded to the parties by the LCIA.
“110 Letter 30 April 2019.
“Unlike the Legal and Other Costs, where the issues as to allocation of costs relate to the degree of success, it was necessary for WAGL to commence this arbitration to recover the sums awarded. Thus the Tribunal concludes that liability for the full Arbitration costs should rest with GoG and accordingly WAGL is entitled to be reimbursed the Arbitration Costs it has paid in the sum of £153,108.88.”
This comes after the London-based United Nations Commission on International Trade Law tribunal has ordered Ghana to pay $170million to the Ghana Power Generation Company (GPGC
This follows the termination of the contract between the government of Ghana and an independent power producer, GPGC in 2018.