The government of Ghana has formally written to Balkan Energy to settle a twelve million dollar judgement debt awarded against the state out of court.
The International Court of Arbitration awarded a twelve million dollar judgment debt against the state in 2013.
This was after government through the Supreme Court annulled a 20-year agreement with the company.
Balkan Energy Ghana had a contract to refurbish and operate the Osagyefo power barge.
They were 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.
However, the government annulled the agreement because it was not approved Parliament among other reasons.
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The company, therefore, proceeded to the International Court of Arbitration for wrongful termination of the contract and was awarded a judgment debt of twelve million dollars.
Government is yet to pay the judgement debt.
Meanwhile, the company has sued the government in a South African court claiming damages for nonpayment of the judgment debt.
But according to Accra-based Citi FM, the government has formally written to the company indicating its readiness to settle the debt without interest.