Ghana Water Limited (GWCL) has been ordered to pay US$235 million to Befesa Desalination Developments Ghana Limited, the company operating the Teshie-Nungua desalination plant, following an arbitration dispute over the termination of a water purchase agreement. The award was issued by an International Chamber of Commerce (ICC) arbitration tribunal on September 17, 2026.
The US$235 million award, net of taxes, relates to payments arising from the termination of the water purchase agreement between GWCL and Befesa. Interest will accrue on the amount from April 1, 2026, until the payment is made. The tribunal also ordered GWCL to partially reimburse Befesa’s legal costs incurred during the arbitration.
The dispute is linked to the Teshie-Nungua desalination plant, which has been at the centre of contractual and financial disagreements between the state and its private operator. The plant has a production capacity of 60,000 cubic metres of water per day and supplies communities including Teshie, Nungua, Spintex, Baatsona, Sakumono, and parts of La-Dadekotopon and Lashibi.
Under the state guarantee attached to the project, the Republic of Ghana has also been found liable for the amounts awarded. However, the arbitration decisions do not permit Befesa to recover the same amounts twice. The ruling substantially rejected counterclaims brought by GWCL against Befesa, including a US$144.5 million claim.
The latest arbitration award comes as the government continues efforts to resolve the dispute and restore the plant’s operations. In February 2026, President John Mahama directed the Finance Minister, the Attorney-General, and Ghana Water to engage the plant’s shareholders to find a resolution to the dispute.
The plant’s continued non-operation has affected water supply to communities within its catchment, increasing reliance on alternative sources of water. Cox, the Spanish infrastructure group that owns 95% of the Ghanaian project company, said negotiations between the parties towards an amicable resolution were continuing, without prejudice to the rights established by the arbitration awards.
Cox said the arbitration awards are final and binding on the parties, although they remain subject to any applicable challenge mechanisms. The company also cautioned that the US$235 million recognised in the awards does not automatically represent net cash attributable to Cox, as the eventual financial impact will depend on factors including recovery of the award, the project’s financial structure, third-party rights, and applicable accounting treatment.
Key points
- Ghana Water Limited has been ordered to pay US$235 million to Befesa Desalination Developments Ghana Limited.
- The dispute is linked to the Teshie-Nungua desalination plant, which has a production capacity of 60,000 cubic metres of water per day.
- The Republic of Ghana has also been found liable for the amounts awarded under the state guarantee attached to the project.
