The Ghanaian government has initiated negotiations with Befesa to purchase the Teshie Desalination Plant, a move aimed at averting a $235 million arbitration award against the Ghana Water Company Limited (GWCL). According to the Office of the Attorney-General, significant progress has been made in the negotiations. The government is seeking to acquire the facility at a price much lower than the amounts involved in the arbitration proceedings. This development comes after an International Chamber of Commerce (ICC) tribunal ordered Ghana Water to pay $235 million to Befesa Desalination Developments Ghana Ltd.
The negotiations between the government and Befesa began before the final award was issued by the ICC tribunal. The Attorney-General's Office stated that the government had entered into talks with Befesa to purchase the Teshie Desalination Plant at a lower price than the amounts sought from the arbitration. Acquiring the facility would grant the state full ownership, helping to avoid further costs and restore a key source of water supply to about one million residents in eastern Accra. The Teshie plant, with a production capacity of 60,000 cubic meters of water daily, has been out of operation since October 2025.
The ICC tribunal found that Befesa had validly terminated the Water Purchase Agreement but rejected a separate claim for about $402 million in alleged unpaid water charges. A related arbitration under Ghana's state guarantee held the Republic liable for obligations owed by Ghana Water. The government's acquisition of the plant is being pursued as a way to resolve the financial dispute and restore the plant to full operation. The Office of the Attorney-General expects to conclude the negotiations within the shortest possible time.
The shutdown of the Teshie plant has affected water supply to parts of Teshie, Nungua, Spintex, and Sakumono. The government's efforts to acquire the plant aim to address the water crisis in these areas. While the proposed purchase price and detailed terms of the negotiations remain undisclosed, the acquisition is seen as a crucial step in resolving the dispute and ensuring a stable water supply.
The Attorney-General's Office emphasized that significant progress has been made in the negotiations for the purchase of the plant. The government is optimistic about concluding the talks soon, which would facilitate the plant's return to full operation. This development is expected to have a positive impact on the water supply situation in eastern Accra.
The Teshie Desalination Plant was initially intended to alleviate the water crisis in Teshie-Nungua. However, its shutdown has exacerbated the situation, leaving residents to endure water shortages. The government's negotiations with Befesa are seen as a critical step towards resolving the crisis and ensuring a reliable water supply for the affected communities.
The outcome of the negotiations will have significant implications for the water sector in Ghana. A successful acquisition would enable the government to restore the plant to operation, addressing the water shortages in eastern Accra. Key points include:
Key points
- The government is negotiating to acquire the Teshie Desalination Plant to avert a $235 million arbitration award.
- The negotiations began before the final award was issued by the ICC tribunal.
- Acquiring the plant would grant the state full ownership and help restore a key source of water supply to about one million residents.
