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TWO US FIRMS AT EACH OTHER’S THROAT IN
GHANA!
Accra, January 25, Ghanadot.com - An Accra High Court will
on Friday start hearing a case in which Lushann
International Energy Incorporated and G.E. Energy Rentals
both US energy firms are at each others throat seeking a
declaration that the conduct of the latter amounted to a
breach of contract.
The case is one in which the two were to supply nation’s
only power generating company Volta River Authority in 2002,
85 MW of power to supplement supplies from the Akosombo Dam
and the Aboadze Thermal Plant near Takoradi.
G.E. Energy Rentals have meanwhile denied the charges
claiming Lushann’s court action is an abuse of court
process, besides failing to disclose a reasonable cause of
action for which relief could be granted.
THE FULL FACTS
The VRA, under the Dr. Charles Wereko Brobby on January 10,
2002 entered into an agreement with Lushann for the lease of
the 85 MW power plant for a three year period to supplement
energy supply in the country. Lushann then went into an
agreement with G.E. Energy Rentals to jointly execute the
project.
According to the state owned Daily Graphic Lushann later
accused G.E. Energy Rentals of using Lushann’s trade secrets
and strategic information regarding its Power Purchase
Agreement (PPA) with the VRA without its consent.
Being the plaintiffs, Lushann further contended that G.E.
Energy Rentals interfered with Lushann’s contractual
relationship with the VRA resulting in the termination of
the PPA and misappropriation of its trade secret.
It said on February 8, 2002, the plaintiff executed a PPA
with the VRA for the emergency supply of power to Ghana with
a statement of claim saying that after the execution of the
PPA, the plaintiff, mindful of time constraints,
aggressively expended effort, time and resources towards its
implementation including negotiating and executing several
agreement, making trips within the US, to Europe and Africa.
It said because of the long period of four to six months
required to pour concrete for the installation of a
permanent plant, the VRA and Lushann decided to resort to
the temporary use of skid mounted units.
In this regard, Lushann found out that G.E. Energy Rentals
had several of the skid-mounted units in the US to rent out
and so with the assistance of personnel of G.E. Energy
Rentals, Lushann inspected the units and agreed to use some
of the units n the execution of the PPA in Ghana.
Negotiations to further explore more ways then began between
the two companies to jointly implement the PPA with the VRA.
Later Lushann furnished G. E. Energy Rentals with copies of
the PPA, a copy of Letters of Credit, which it opened with
Lushann’s favour by the VRA and the names of Lushann’s
primary contacts.
The statement of claim said during the discussions Lushann
revealed its trade secrets, confidential business
information and strategic plans for power generation in
Ghana and the rest of West Africa, with assurances from the
defendant that the information would be utilized only to
further Lushann’s relationship with the VRA.
It was followed with the signing of a memorandum of
understanding in furtherance of the PPA with the VRA as a
result of the discussions and negotiations.
However without the plaintiff’s consent the defendant began
to make contacts with the VRA in respect of the PPA and
thereby complicated the plaintiff’s relationship with the
VRA and succeeded in wresting the PPA from it.
The statement said G.E. Energy Rentals was liable for
tortuous interference with the contractual relationship,
misappropriation of trade secret, breach of implied covenant
not to compete and breach of non-circumvention agreement.
Ghanadot.com January 25, 2006
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