The Finance Ministry has announced its readiness to assume the full financial cost of resolving the contractual dispute surrounding the Teshie desalination plant, according to the Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman. The disclosure follows an arbitration ruling that ordered Ghana Water Limited (GWL) to pay US$235 million to Befesa Desalination Developments Ghana Limited, the company operating the plant, over a dispute arising from the termination of a water purchase agreement.
Speaking on the Citi Breakfast Show on Tuesday, November 10, Dr Suleman said discussions had been held with the company, which had indicated its willingness to accept about US$80 million to settle the dispute and pave the way for the resumption of operations at the facility. He added that GWL had initially been expected to raise US$10 million towards the settlement, but the Finance Minister had subsequently indicated that the government would assume the entire cost.
"They said Ghana Water should raise about US$10 million. We have tried our best, but the Finance Minister has indicated that government will take up the entire cost," Dr Suleman said.
"We are hoping that, by the grace of God, the Finance Minister can at least make some commitment to the company by the end of the year so they can commence operations," he added.
Dr Suleman expressed hope that the Finance Minister would make a financial commitment to the company before the end of the year to facilitate the plant’s return to operation. He confirmed that the facility was capable of operating and would be handed over entirely to GWL for management once the outstanding issues had been resolved.
However, he raised concerns about GWL’s capacity to manage the facility effectively in the long term, although he expressed confidence in the technical expertise of its workforce. The dispute followed the termination of a water purchase agreement between GWL and Befesa Desalination Developments Ghana Limited, which is 95 per cent owned by Spanish infrastructure group Cox.
Cox announced on September 21 that an International Chamber of Commerce arbitration tribunal had issued two final decisions on September 17, ordering GWL to pay US$235 million, net of taxes. Interest on the award has been accruing since April 1, 2026, until payment is made.
With the government’s commitment to cover the settlement, the Teshie desalination plant could soon resume supplying clean water to the northern suburbs of Accra, a critical step for the region’s water security.
