Politics

GoG cancelled GPGC Contract based on alleged non-performance – NDC clarifies

 

The National Democratic congress, NDC has given clarification on the cancellation of the Ghana Power Generation Company (GPGC) by the Nana Akufo Addo led government.

In a press conference addressed by the party communications officer, Mr. Sammy Gyamfi said “the implementation of the GPGC EPA proceeded smoothly under the Mahama/NDC administration until the Akufo-Addo/Bawumia government took over the reins of power in the year 2017.

On 13th February, 2018, the Minister for Energy, Boakye Agyarko wrote to terminate the GPGC EPA.

The termination of the GPGC EPA, according to Boakye Agyarko, was on the instructions of Cabinet, which is chaired by President Nana Addo Danquah Akufo-Addo”.

He added that “it is instructive to note that the reasons which were cited by the Akufo-Addo government as the basis for the termination of the GPGC EPA did not include any issue of excess
power or excess capacity charges as government would have us believe.

Rather, the reasons which were contained in Boakye Agyarko’s termination letter of 13th February, 2018 and the Advice of the then Attorney General, Gloria Akufo dated 28th August, 2017, bordered on alleged non-performance of certain Conditions Precedent and Subsequent by GPGC, namely;

1. Failure of GPGC to secure a license from the Energy Commission to enable them engage in the sale of electricity in the country, in accordance with section 11 of the Energy Commission Act.

2. Failure of GPGC to secure a siting and construction permit for the project.

3. Failure of GPGC to achieve financial closure”.

However “all these claims by the Akufo-Addo government which formed the basis for the termination of the GPGC EPA were found to be contrived and baseless by the Permanent Court of Arbitration of the United Nations Commission on International Trade Law”.

In the judgement at paragraph 479 of the Arbitral Award, all the three (3) Arbitrators, including Ghana’s selected Arbitrator, Professor Fiadjoe, unanimously held that these claims by the Akufo-Addo/Bawumia Government did not “reflect the true
facts”.

The “Tribunal among other things, noted that GPGC had actually secured a building permit from the Kpone Katamanso District Assembly for the Blue Ocean project and had actually applied for a commercial license from the Energy Commission, save that, president Akufo-Addo had not constituted the Board of the Energy Commission, which is the body mandated by law to issue such Licenses at the time the Agreement was being terminated, the NDC noted.

Additionally, the NDC further stressed “the Tribunal found that all the Conditions Precedent and Subsequent that were yet to be fulfilled were wholly attributable to failings on the part of the Government of Ghana and not GPGC. In short, the Arbitration Tribunal found that the termination of the GPGC EPA by the Akufo-Addo/Bawumia government was wrongful and without any lawful justification, for which reason the panel unanimously awarded damages of about USD$170 million against Ghana, inclusive of interest. This can be found at paragraph 493 of the Arbitral award”.

“It is crystal clear from the foregoing facts that are contained in the Arbitral Award, that this huge judgement debt of USD$170 million has been occasioned by the criminal negligence, incompetence and recklessness of the Akufo-Addo government.

Their willful recklessness in terminating the GPGC EPA on the basis of contrived and frivolous basis is the reason why Ghana has been slapped with this avoidable judgment debt” the NDC concluded.

 

 

By : Agaatorne Douglas Asaah / RiddimsGhana

riddimsghana

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