The Office of the Attorney‑General and Ministry of Justice announced that it is negotiating with Befesa Desalination Development Ghana Limited to acquire the Teshie Desalination Plant and avoid a US$235 million arbitration payout.
The move follows a final award by an International Chamber of Commerce tribunal in a dispute between Befesa and Ghana Water Company Limited over the Water Purchase Agreement for the plant.
In a statement issued on Wednesday, September 23, the Attorney‑General’s Office said significant progress had been made in the negotiations before the tribunal delivered its final award.
“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 statement read.
The tribunal found that Befesa had validly terminated the Water Purchase Agreement and held Ghana Water liable for contractual termination payments.
According to the Attorney‑General’s office, the claimants had sought approximately US$402 million in alleged unpaid charges as well as about US$235 million in contractual termination payments. The tribunal dismissed the US$402 million claim and awarded US$235 million in termination payments, inclusive of pre‑award interest calculated to March 31, 2026.
A parallel arbitration brought by Befesa against the Republic of Ghana under the state guarantee also principally held Ghana liable for Ghana Water’s obligations arising from the dispute.
The Attorney‑General’s Office said the proposed acquisition would give the state full ownership of the plant while avoiding additional costs beyond those necessary to guarantee continued water supply to about one million residents in eastern Accra.
The government hopes to conclude the negotiations within the shortest possible time to enable the plant to return to full operation.
The statement did not disclose the proposed purchase price or the specific terms of the negotiations with Befesa.
