The District of Columbia Court has ruled against the Ghanaian government, ordering it to pay $111.5 million, along with post-judgment interest, to the Ghana Power Generation Company (GPGC). This decision follows Ghana’s partial compliance with a 2021 UK tribunal award, which found the country in breach of a power purchase agreement with GPGC.
The UK tribunal initially awarded GPGC $134.3 million in damages after Ghana unilaterally terminated the agreement in February 2018, citing alleged failures by GPGC to meet contractual obligations. Despite this ruling, Ghana made only partial payments, leading GPGC to seek enforcement of the award in the U.S. District Court in January 2024 under the New York Convention.
The court’s decision adds to Ghana’s financial burdens, as the country faces growing economic challenges. Chief Judge James E. Boasberg affirmed the court’s jurisdiction, citing Ghana’s waiver of sovereign immunity by agreeing to international arbitration in the original contract. While the judge declined to award pre-judgment interest, the imposition of post-judgment interest further compounds Ghana’s obligations.