The government of Ghana says it has made significant progress in negotiations to acquire the Teshie Desalination Plant from Befesa at a price “much lower” than the amounts sought in arbitration, as it seeks to avoid paying the US$235 million award against Ghana Water Company Limited (GWCL).

The Office of the Attorney-General disclosed this in a statement on Wednesday, September 23, following the International Chamber of Commerce (ICC) tribunal’s final award in the dispute over the plant’s Water Purchase Agreement.

“Despite the commencement of arbitral proceedings and before the final award, the Government of Ghana had entered into negotiations with Befesa to purchase the Teshie Desalination Plant at a price much lower than the amounts sought from the arbitration,” the statement said.

The Government said the proposed purchase would secure full state ownership of the facility and prevent additional costs beyond those necessary to ensure continued water supply to about one million residents in eastern Accra.

“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 Attorney-General’s statement added.

Read Also: Ghana Water ordered to pay $235m over Teshie desalination plant dispute

Government says it hopes to conclude the negotiations “within the shortest possible time” to enable the plant to return to full operation.

Award puts pressure on efforts to resolve dispute

The negotiations come after an ICC tribunal ordered Ghana Water to pay US$235 million, net of taxes, to Befesa Desalination Developments Ghana Ltd in termination payments arising from the water purchase agreement.

The tribunal found that Befesa had validly terminated the agreement but rejected its separate claim for approximately US$402 million in alleged unpaid water charges, ruling that the two claims could not be recovered cumulatively.

A parallel arbitration under Ghana’s state guarantee also principally held the Republic liable for Ghana Water’s obligations.

The plant, designed to produce 60,000 cubic metres of water daily, has been out of operation since October 2025 amid unresolved contractual and maintenance issues. Its shutdown has affected water supply to communities including Teshie, Nungua, Spintex and parts of Sakumono.

The Government’s proposed acquisition is therefore being pursued not only to address the financial dispute but also to restore the facility’s contribution to water supply in the affected areas.

The Attorney-General’s statement did not disclose the proposed purchase price, the detailed terms of the negotiations or whether an agreement had been reached. The US$235 million award has been issued, and the statement presents the purchase as an ongoing effort to avoid that payment.