An international arbitration court has ruled that Ghana Water Limited must pay $235 million to Cox, the Spanish infrastructure group that controls the company operating the Teshie desalination plant. The ruling was issued on September 17, and the award covers payments arising from the termination of the agreement under which Ghana Water purchased treated seawater from the plant. Interest will accrue from April 1, 2026, until the full amount is settled.
The tribunal dismissed counterclaims filed by Ghana Water against the project company, including a $144.5 million claim, and directed the utility to contribute towards the company's legal costs. Under a state guarantee linked to the project, the Republic of Ghana has also been found liable for the awarded sums. However, Cox confirmed that the project company cannot recover the same amounts from both parties simultaneously.
The dispute originated from a pricing imbalance that made the arrangement financially unsustainable for Ghana Water. The utility was purchasing desalinated water at GH¢6.75 per unit, while the approved tariff permitted it to sell the water to consumers at only GH¢1.47 per unit. This substantial gap between procurement costs and recoverable revenue led to the termination of the water purchase agreement.
The Teshie plant was shut down in October 2025 after Ghana Water suspended operations amid unresolved contractual issues and concerns about maintenance. The closure has disrupted water supply to communities in Teshie, Nungua, Spintex, parts of Sakumono, and La. Residents have turned to water tankers and boreholes as alternatives.
In February 2026, President John Mahama directed the Finance Minister, the Attorney-General, and Ghana Water to enter negotiations with the plant's shareholders to resolve the dispute and restore operations. Ghana Water Limited's Managing Director, Adam Mutawakilu, indicated that the utility was pursuing a settlement that would allow the facility to resume supply.
The plant was commissioned in 2015 under a 25-year build-own-operate-transfer arrangement at a cost of $126 million. It was designed to produce 60,000 cubic meters of water daily, serving up to 500,000 people in the Teshie-Nungua catchment area. Cox took over the assets of former Spanish engineering firm Abengoa in 2023, becoming the majority shareholder of the Ghanaian project company.
The latest ruling adds significantly to Ghana's outstanding liabilities from international arbitration proceedings involving major infrastructure projects. The country has recently been ordered to pay $111,493,828.92 with interest to Trafigura, a multinational company, and was awarded a judgment debt of approximately $140 million in 2021.
Key points
- Ghana Water Limited must pay $235 million to Cox over the Teshie desalination plant dispute.
- The Republic of Ghana is also liable for the awarded sums under a state guarantee linked to the project.
- The dispute originated from a pricing imbalance that made the arrangement financially unsustainable for Ghana Water.
