Ghana seeks to buy Teshie desalination plant after $235m arbitration award
The government says talks with the plant’s owner have advanced, but has disclosed neither a purchase price nor an agreement. The facility has been shut since October 2025, affecting water supplies in eastern Accra.
Ghana’s government says it is making progress in talks to buy the Teshie Desalination Plant from Befesa after an arbitration tribunal ordered Ghana Water Company Limited (GWCL) to pay $235m over a dispute concerning the facility.
The Office of the Attorney-General said on Wednesday that a purchase could secure state ownership of the plant and help avoid payment of the award. It did not disclose the proposed price or say that a deal had been reached.
The plant has been out of operation since October 2025 amid contractual and maintenance issues. Designed to produce 60,000 cubic metres of water a day, it serves an area where the shutdown has affected communities including Teshie, Nungua, Spintex and parts of Sakumono.
The negotiations began before the International Chamber of Commerce tribunal issued its final award, according to the Attorney-General’s statement.
The government said it was seeking to buy the plant for a price “much lower” than the amounts Befesa had sought in arbitration.
The tribunal ordered GWCL to pay Befesa Desalination Developments Ghana Ltd $235m, net of taxes, in termination payments under the water purchase agreement. It found that Befesa had validly terminated the agreement.
It rejected Befesa’s separate claim for approximately $402m in alleged unpaid water charges, ruling that the two claims could not be recovered together. A parallel arbitration under Ghana’s state guarantee also principally held the Republic liable for GWCL’s obligations, according to the material provided.
The government says it hopes to conclude the purchase talks soon so that the plant can return to full operation. It estimates that continued water supply from the facility matters to about one million residents in eastern Accra.
The Attorney-General’s statement does not explain how a purchase would affect the $235m award if the talks succeed. For now, the award stands, the purchase remains under negotiation and no date has been given for the plant’s return to full operation.