The Government of Ghana says it is in advanced negotiations with Befesa Desalination Developments Ghana Ltd to acquire the Teshie Desalination Plant, in a move aimed at avoiding the payment of the $235 million awarded by an international arbitration tribunal.
The announcement follows a final award in an arbitration dispute between Befesa, Standard Bank of South Africa Limited and Ghana Water Company Limited (GWCL) over the plant and a Water Purchase Agreement (WPA) signed between the parties.
According to the Office of the Attorney-General and Ministry of Justice, the tribunal found that Befesa had validly terminated the WPA after breaches by Ghana Water and ruled that Ghana Water was liable for contractual termination payments.
The tribunal awarded $235 million, net of taxes, to Befesa and Standard Bank, including pre-award interest calculated to March 31, 2026. Interest on the debt component will continue to accrue from April 1, 2026.
Despite the arbitration proceedings, the government says it began negotiations with Befesa to purchase the desalination plant for a price significantly lower than the amounts involved in the arbitration.
The government believes acquiring the facility could provide a way to resolve the dispute while securing continued access to desalinated water for residents in eastern Accra. The Attorney-General’s statement said negotiations have made “significant progress” and that government hopes to conclude the deal “within the shortest possible time.”
If completed, the transaction would give the state full ownership of the facility and, according to government, eliminate the need to incur additional costs beyond those necessary to keep the plant operating.
The latest negotiations therefore put the government in a position where acquiring the asset could potentially cost substantially less than simply paying the $235 million arbitration award, while also bringing the facility under state ownership.
The Attorney-General says the immediate objective of government now is to conclude the purchase agreement and restore the plant to full operation, ensuring continued water supply to an estimated one million residents in eastern Accra.
