In a move described as timely indicate the government of Ghana is in advanced negotiations to acquire the Teshie Desalination Plant, a move aimed at averting a US$235 million arbitration award against the Ghana Water Company Limited (GWCL) and restoring a vital water supply to eastern Accra.
In a statement issued on Wednesday, September 23, 2026, the Office of the Attorney-General (AG) confirmed that an International Chamber of Commerce (ICC) tribunal had ordered GWCL to pay US$235 million, net of taxes, to Befesa Desalination Developments Ghana Ltd.
The award follows arbitration proceedings initiated by Befesa and Standard Bank of South Africa Limited in October 2024 over the terminated Water Purchase Agreement (WPA).
The tribunal found that Befesa had validly terminated the WPA and was entitled to contractual termination payments, which include pre-award interest calculated up to March 31, 2026. Further interest on the debt component will continue to accrue from April 1, 2026.
However, the tribunal dealt a significant blow to the claimants by dismissing a separate claim for approximately US$402 million in alleged unpaid water charges.
The panel ruled that the unpaid charges (Claim 2) and the termination payments (Claim 1) could not be recovered cumulatively.
Because the US$235 million award represents 58.4% of the total monetary benchmark, the tribunal also ordered the reimbursement of 58.4% of the claimants’ reasonable legal and representation costs.
In a parallel ruling under ICC Case No. 29030/CPB, a tribunal held the Republic of Ghana liable for GWCL’s obligations under the state guarantee, substantially following the primary decision against the utility company.
Despite the costly ruling, the AG emphasized that the government is actively working to bypass the financial penalty by purchasing the facility outright.
According to the statement, the government entered negotiations with Befesa before the final arbitral award was issued, seeking to buy the plant at a price “much lower” than the amounts involved in the arbitration.
“The award notwithstanding, significant progress has been made in the negotiations for the purchase of the plant to avoid the payment of the said $235 million,” the AG’s statement noted.
The government hopes to conclude the negotiations “within the shortest possible time.” Acquiring the facility would give the state full ownership, eliminate the massive arbitration payout, and allow for the plant’s return to full operation.
The Teshie Desalination Plant, which has a production capacity of 60,000 cubic metres of water daily, has been out of operation since October 2025 due to contractual and maintenance disputes.
Its shutdown has severely impacted water supply to about one million residents in Teshie, Nungua, Spintex, and Sakumono.
While the government has not disclosed the proposed purchase price, it views the acquisition as the most effective way to resolve the financial dispute and stabilize the region’s water infrastructure.