Ghana Water Limited has been ordered to pay approximately $235 million to the Spanish-owned company behind the Teshie desalination plant following a dispute over the termination of a water purchase agreement. The International Chamber of Commerce arbitration tribunal issued two final decisions on September 17, which were announced by Cox, the Spanish infrastructure group that owns 95% of Befesa Desalination Developments Ghana Limited.
The award relates to payments arising from the termination of the agreement under which Ghana Water purchased treated seawater from the Teshie plant. Interest on the amount will accrue from April 1, 2026, until the award is fully paid. The arbitration tribunal also largely dismissed counterclaims filed by Ghana Water against the project company, including a $144.5 million claim.
Ghana Water was further ordered to contribute to the legal costs incurred by the project company. Under a state guarantee attached to the project, the Republic of Ghana has also been found liable for the amounts awarded. However, Cox clarified that the project company would not be entitled to recover the same sums twice.
The dispute follows the shutdown of the Teshie desalination plant in October 2025 after Ghana Water halted operations amid unresolved contractual matters and concerns over maintenance. The shutdown has affected water supply to several communities, including Teshie, Nungua, Spintex, parts of Sakumono and La.
Residents in the affected areas have since relied on alternative sources such as water tankers and boreholes to meet their water needs. In February 2026, President John Dramani Mahama directed the Finance Minister, the Attorney-General and Ghana Water to engage the plant’s shareholders to find a resolution to the dispute and facilitate the resumption of operations.
At the heart of the dispute is the cost of desalinated water supplied by the facility. Ghana Water had reportedly been purchasing the water at GH¢6.75 per unit while the approved tariff allowed the utility to sell it at GH¢1.47, creating a substantial difference between the cost of production and revenue from sales.
The $126 million Teshie desalination plant was commissioned in 2015 under a 25-year build-own-operate-transfer arrangement. The facility was designed to produce about 60,000 cubic metres of water daily, enough to serve up to 500,000 people within the Teshie-Nungua catchment.
Key points
- Ghana Water Limited has been ordered to pay $235 million to Cox, the Spanish infrastructure group behind the Teshie desalination plant.
- The dispute follows the shutdown of the Teshie desalination plant in October 2025.
- The $126 million Teshie desalination plant was commissioned in 2015 under a 25-year build-own-operate-transfer arrangement.
