Government has denied reports that the International Court of Arbitration has ordered it to pay a 12 million dollar judgment debt to Balkan Energy Company (BEC).
The New Crusading Guide newspaper in a publication reported that the court of arbitration in The Hague ordered the government of Ghana to pay an amount of 12 million dollars after abrogating the disputed Osagyefo Barge contract.
Addressing the media in Accra, the Attorney-General, Marietta Brew Appiah-Oppong said the New Crusading Guide report is false. The AG with her team of lawyers confirmed the ruling by the Court of Arbitration but failed to disclose the details of the arbitration.
”I wish to confirm that on the 1st of April 2014 an award was indeed made; however, currently due to the UNCITRAL Rules under which we conducted the arbitration we cannot give you the details of the award. However, I can confirm that Ghana is not down and out, the Osagyefo Barge has and continues to remain the property of Ghana and the people of Ghana and we are making arrangements to take control of the barge,” she noted.
According to the newspaper, Balkan Energy was claiming almost $2 billion for the abrogation of the contract, but the court took cognizance of an earlier ruling by Ghana’s Supreme Court on some cases to slash down the demands to 12 million dollars.
The government of Ghana entered a 20-year lease agreement with the company, Balkan Energy Ghana in July 2007 to refurbish and operate the power barge, initially using diesel fuel and later using gas to be delivered by the West African Gas Pipeline.
But the company failed to honour its obligations due to several factors.
This led the government of Ghana to sue the company and by extension nullified the contract entered into with the company. Balkan then went to Hague to seek justice and demanded $2 billion damages.
The International Court of Arbitration ruled in favour of Balkan by awarding them a $12 million fine instead of the $2 billion amount it originally demanded against the government of Ghana.
Balkan Energy was awarded the amount on April 1, 2014, after years of arbitration.
By: Evans Effah/citifmonline.com/Ghana