Default Proceedings Underway in Award Confirmation Case Against Ghana

Petitioner GPGC Ltd., represented by Robert Kry of Molo Lamken LLP informed the Court that service of the Clerk's Entry of Default on the Republic of Ghana was completed in a proceeding to confirm a $134 million award against the sovereign.

The arbitration arose out of a 2015 Emergency Purchase Agreement between Ghana and GPGC, a commodity supplier and supply chain manager with operations around the world (the “EPA”). Under the EPA, GPGC agreed to relocate, install, and operate two gas turbine power plants to meet the energy needs of the Republic of Ghana during an energy crisis affecting the country. That agreement required GPGC to dismantle the two power plants, transport them to Ghana, install them, and operate and maintain them, all at its own expense. In return, GPGC would earn revenues from the energy sales for a guaranteed term of four years. But according to the petition to confirm, in December 2016, Ghana held a general election, and the newly installed government believed that its predecessor had purchased too much power and that there would be an excess of supply. In February 2018, Ghana purported to terminate the EPA. The arbitration ensued before the Permanent Court of Arbitration, where GPGC claimed that the termination of the EPA was unlawful.

In January 2021, the tribunal issued its final award, ordering Ghana to pay GPGC $134,348,661 for its wrongful termination of the EPA. Ghana has made a few partial payments toward the Award, but has failed to pay the full amount due.

GPGC filed the petition to confirm the Award before the U.S. District Court for the District of Columbia in January 2024. The petition was served on Ghana that same month. Due to Ghana's failure to appear in this case, GPGC filed and affidavit in support of default on April 23, 2024. The Clerk entered default the next day. With the clerk's entry of default having been served on the sovereign, GPGC will soon move for default judgment and confirmation of the award.

Ghana is not a stranger to U.S. courts and it has appeared in the past to oppose the confirmation of arbitration awards, see, e.g.,  Balkan Energy Ltd. v. Republic of Ghana, 302 F. Supp. 3d 144 (D.D.C. 2018), or other lawsuits brought against it in U.S. courts, e.g., TJGEM LLC v. Republic of Ghana, 26 F. Supp. 3d 1 (D.D.C. 2013), aff'd, No. 14-7036, 2015 WL 3653187 (D.C. Cir. June 9, 2015).

The case is GPGC Limited v. Government of the Republic of Ghana, No. 1:24-cv-00169-JEB (D.D.C.).