PR- The Tribunal in the International Arbitration between the Government of Grenada and WRB issued its ruling on Thursday 19th March 2020.
In 2017, WRB brought the Government of Grenada before the Tribunal, demanding that GOG buy back WRB’s 50% shares in GRENLEC.
The Tribunal, in giving its ruling, followed the contract as was signed by the Government of Grenada in 1994, during the Nicholas Brathwaite administration.
The market value of the shares was not used, but instead the formula, as dictated in that contract, was used to arrive at the repurchase price, which is much higher than the market value.
The award is as follows:
- US $58,427,962 for share repurchase
- US $6,654,000 for pre-award interest
- US $6,573,115 for fees and costs to claimants.
In arriving at the repurchase price, the Tribunal deducted from WRB’s repurchase amount, all dividends they received from the time of the claim to the time of the award. The Tribunal also made WRB pay back to GRENLEC, the money that WRB used to pay for legal and accounting services.
In effect, this final settlement presents a golden opportunity for electricity consumers in Grenada to obtain cheaper electricity, just as telephone users did in 2000 after the liberalization of the telecommunications sector, through the unimpeded implementation of the new framework, which will allow, among other things, households and businesses to generate and use their own electricity, while selling any excess to GRENLEC at prices regulated by the Public Utilities Regulatory Commission (PURC).