Business News of Monday, 17 July 2017
Government has formally written to Balkan Energy in a move to settle out of court, a twelve million dollar judgment debt against the state.
The company won the judgment against government in 2013 at the International Court of Arbitration.
In 2007, government entered a 20-year lease agreement with the company, Balkan Energy Ghana, to refurbish and operate the Osagyefo power barge.
The company was expected to initially operate the facility with diesel fuel and later switch to gas to be delivered by the West African Gas Pipeline.
Also they were expected to increase the generation capacity of the barge by 60 Megawatts and to begin operations in 90 days after the signing of the agreement.
But government through the Supreme Court annulled the agreement because it was not approved by Parliament among other reasons.
Balkan Energy proceeded to the International Court of Arbitration for wrongful termination of contract and was awarded a judgment debt of twelve million dollars.
The company currently has sued government in a South African court ,claiming damages for nonpayment of the judgment debt.
But a source close to the situation told Citi News that the government has written to the company indicating its decision to pay its debt without interest.
Source: Ghanaweb news