The Ghanaian government has disclosed that it is engaged in negotiations with Befesa Desalination Developments Ghana Ltd to acquire the Teshie Desalination Plant at a price substantially below the $235 million arbitration award. The International Chamber of Commerce (ICC) tribunal ordered Ghana Water Company Limited (GWCL) to pay the amount over a terminated water purchase agreement. According to the Attorney-General's statement, the negotiations began before the tribunal issued its final award.
The proposed purchase price is described as "much lower than the amounts sought from the arbitration." The government aims to conclude the negotiations within the shortest possible time to restore the facility to full operation. The Teshie Desalination Plant, with a daily production capacity of 60,000 cubic meters of water, has been offline since October 2025 due to unresolved contractual and maintenance issues.
The plant's shutdown has affected communities including Teshie, Nungua, Spintex, and parts of Sakumono, serving a combined population of close to one million. The government's bid to acquire the facility is driven by two parallel concerns: resolving the financial liability arising from the arbitration and restoring the plant to operation in service of those communities.
The ICC tribunal found that Befesa had validly terminated the Water Purchase Agreement and ordered GWCL to pay $235 million net of taxes in termination payments. However, the tribunal dismissed Befesa's separate claim of approximately $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. The government's statement read, "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."
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 government hopes that acquiring the plant will resolve the financial liability and restore water supply to the affected communities.
The negotiations between the government and Befesa Desalination Developments Ghana Ltd are ongoing, with no purchase price or detailed terms provided. The Attorney-General's statement confirmed that the government is making meaningful headway in efforts to purchase the Teshie Desalination Plant.
Key points
- The Ghanaian government is negotiating to buy the Teshie Desalination Plant at a price lower than the $235 million arbitration award.
- The plant has been offline since October 2025 due to unresolved contractual and maintenance issues.
- The acquisition aims to resolve the financial liability and restore water supply to communities serving a combined population of close to one million.
