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Analysis | Infographics | National | Research

Ghana vs Trafigura: The road to the $140m judgment debt

On January 26, 2021, Trafigura received a favourable final award in arbitral proceedings held in England against the Government of Ghanaian. The award, amounting to approximately $140 million, stemmed from a written agreement involving the installation and operation of two power plants. Ghana, however, unlawfully terminated the agreement before its terms were fulfilled.

On November 4, 2021, the Court granted Trafigura permission to enforce the award, treating it akin to a judgment from the High Court. The termination of the deal by the government in 2017 was based on the Attorney General's advice, citing concerns about high tariffs that would have cost the state $115,480,000 if implemented.

Additionally, the termination was attributed to alleged illegality, including the lack of capacity of [GPGC] to enter into a Power Purchase Agreement (PPA), failure to obtain necessary permits, installation of used equipment against policy, and non-fulfillment of certain conditions by GPGC, among other reasons.

SLIDE 1: The award

SLIDE 2: Recent development

SLIDE 3: What happened?

SLIDE 4: What happened?

SLIDE 5: What was the AG's advice?

SLIDE 6: Basis for contract termination

SLIDE 7: What the contract said about unlawful termination

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.