Teshie:The government is negotiating with Befesa to purchase the Teshie desalination plant at a price lower than the $235 million awarded to the company in an international arbitration dispute.
According to Ghana Web, the Office of the Attorney-General and Ministry of Justice announced on September 23, 2026, that the government aims to finalize negotiations soon to return the plant to full operation. This follows the conclusion of two related International Chamber of Commerce (ICC) arbitrations involving the Teshie desalination plant.
In the first arbitration case, Befesa Desalination Developments Ghana Ltd and Standard Bank of South Africa brought claims against Ghana Water Company Limited (GWCL) over the Water Purchase Agreement for the plant. A parallel arbitration was initiated by Befesa against the Republic of Ghana under a state guarantee.
The tribunal determined that Befesa had legitimately terminated the Water Purchase Agreement, making Ghana Water liable for termination payments. Initially, Befesa and Standard Bank sought about $402 million for alleged unpaid charges and $235 million for the termination of the agreement. However, the tribunal dismissed the $402 million claim and awarded $235 million to Befesa and Standard Bank, including pre-award interest up to March 31, 2026, with continuing interest from April 1, 2026.
The Attorney-General's Office highlighted that the tribunal's decision significantly reduced the claim amount, awarding the claimants 58.4% of their requested legal costs, aligning with the reduced monetary claim.
The government had already begun negotiations with Befesa to acquire the plant before the final award. Significant progress has been reported, aiming to avoid the $235 million payment. The purchase would allow the state full ownership, ensuring continued water supply to communities in eastern Accra without incurring additional costs.
The government intends to conclude the negotiations swiftly to resume the plant's full operation. This action is part of broader efforts to secure water supply for residents in Teshie and surrounding areas, following the October 23, 2024, arbitration initiated by Befesa and Standard Bank over payment disputes.