The government of Ghana has made significant progress in negotiations to acquire the Teshie Desalination Plant from Befesa at a price “much lower” than the amounts sought in arbitration. This development comes after an International Chamber of Commerce (ICC) tribunal ordered Ghana Water to pay US$235 million to Befesa Desalination Developments Ghana Ltd in termination payments. The government aims to secure full state ownership of the facility and prevent additional costs.
The proposed purchase of the Teshie desalination plant would enable the government to restore the facility's contribution to water supply in affected areas, including Teshie, Nungua, Spintex, and parts of Sakumono. The plant, designed to produce 60,000 cubic metres of water daily, has been out of operation since October 2025 amid unresolved contractual and maintenance issues. Its shutdown has affected water supply to about one million residents in eastern Accra.
The ICC tribunal found that Befesa had validly terminated the water purchase agreement but rejected its separate claim for approximately US$402 million in alleged unpaid water charges. A parallel arbitration under Ghana’s state guarantee also principally held the Republic liable for Ghana Water’s obligations. The government hopes to conclude the negotiations “within the shortest possible time” to enable the plant to return to full operation.
Attorney General and Minister for Justice Dominic Ayine disclosed that the government had entered into negotiations with Befesa to purchase the Teshie Desalination Plant at a price much lower than the amounts sought from the arbitration. The government’s proposed acquisition is being pursued not only to address the financial dispute but also to restore the facility’s contribution to water supply in the affected areas.
The Office of the Attorney-General stated that significant progress has been made in the negotiations for the purchase of the plant to avoid the payment of the said $235 million. The award puts pressure on efforts to resolve the dispute, and the government is working to conclude the negotiations as soon as possible. The proposed purchase price and detailed terms of the negotiations have not been disclosed.
The Teshie desalination plant's shutdown has had a significant impact on the water supply in eastern Accra, with communities such as Teshie, Nungua, Spintex, and parts of Sakumono affected. The government's acquisition of the plant would help alleviate the water supply challenges in these areas. The Attorney-General’s statement presents the purchase as an ongoing effort to avoid the $235 million payment.
The government’s efforts to acquire the Teshie desalination plant are aimed at ensuring continued water supply to the affected communities. Key points include:
Key points
- The government has made significant progress in negotiations to acquire the Teshie Desalination Plant.
- The proposed purchase aims to secure full state ownership of the facility and prevent additional costs.
- The acquisition would help restore the facility’s contribution to water supply in affected areas.
