Business News of 2014-04-10

Balkan Energy wanted to defraud this country – Energy Minister

Minister of Energy and Petroleum Emmanuel Armah-Kofi Buah has lashed out at United States energy firm, Balkan Energy, for what he describes as its determination to secure judgement against the government of Ghana.

Balkan Energy had claimed damages totaling more than $3 billion against Ghana for the abrogation of a 2007 Power Purchase Agreement (PPA) over the Osagyefo Power Barge, a 125 MW dual fired power barge.

During an inspection tour of the facility at Effasu in the Western Region on Tuesday, the Energy and Petroleum Minister insisted Balkan did not have the capacity to refurbish the barge.

“Balkan has refused to be here and they have written a letter and they insist that we pay $12m before we can venture into this building to take over our barge,” Mr. Buah stated.

“I think it is very clear that that is contrary to the award,” he added.

On April 1, the Permanent Court of Arbitration at the Hague rejected claims by Balkan Energy but awarded the US firm $12 million for work performed while the government of Ghana was awarded $300,000 in damages and given control of the barge.

The Energy Minister toured the facility together with Minister of Justice and Attorney General Marrieta Brew Appiah Oppong.

Government’s $300,000 award is the maximum that could have been awarded government under the PPA, Ms. Appiah Oppong said.

The cost of arbitration would be shared between the two parties, she revealed.

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