Ghana in Talks to Buy Teshie Desalination Plant Below $235m Arbitration Award

• The Attorney-General confirmed the government entered negotiations with Befesa to acquire the Teshie Desalination Plant
• An ICC tribunal ordered Ghana Water Company Limited to pay US$235 million to Befesa Desalination Developments over a terminated water purchase agreement
• The Teshie plant has been offline since October 2025 due to unresolved contractual and maintenance issues

The government says it is making meaningful headway in efforts to purchase the Teshie Desalination Plant from Befesa at a price substantially below the US$235 million that an international tribunal has ordered Ghana Water Company Limited (GWCL) to pay.

The Office of the Attorney-General disclosed the development in a statement issued on Wednesday, 23 September, following the International Chamber of Commerce (ICC) tribunal's final ruling in the long-running contractual dispute over the plant's Water Purchase Agreement.

According to the Attorney-General's statement, negotiations between the government and Befesa Desalination Developments Ghana Ltd began before the tribunal issued its final award, with the proposed purchase price described as "much lower than the amounts sought from the arbitration."

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The government said securing full state ownership of the facility through the deal would also prevent the accumulation of additional costs beyond those required to maintain water supply to the communities the plant serves.

"The award notwithstanding, significant progress has been made in the negotiations for the purchase of the plant to avoid the payment of the said $235 million," the statement read.

The government added that it hopes to conclude the negotiations "within the shortest possible time" so that the facility can return to full operation.

No purchase price, detailed terms or confirmation of a finalised agreement were provided in the statement.

ICC Tribunal Awards $235m Against GWCL

The disclosure comes after the ICC tribunal found that Befesa had validly terminated the Water Purchase Agreement and ordered GWCL to pay US$235 million net of taxes in termination payments.

The tribunal, however, dismissed Befesa's separate claim of approximately US$402 million in alleged unpaid water charges, ruling that the two claims could not be recovered together.

A parallel arbitration brought under Ghana's state guarantee also held the Republic principally liable for GWCL's obligations under the agreement.

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The Teshie Desalination Plant, built with a daily production capacity of 60,000 cubic metres of water, has been shut down since October 2025 following unresolved contractual and maintenance disputes.

Communities including Teshie, Nungua, Spintex and parts of Sakumono, serving a combined population of close to one million, have been affected by the plant's absence from the water supply network.

The government's bid to acquire the facility is therefore being driven by two parallel concerns: resolving the financial liability arising from the arbitration and restoring the plant to operation in service of those communities.

Source: YEN.com.gh