Attorney General reacts to $235m Teshie desalination plant saga

By Ashiadey Dotse

The Office of the Attorney-General and Minister of Justice has clarified that Ghana will not have to pay the full US$402 million claimed by Befesa Desalination Developments Ghana Limited in the dispute over the Teshie Desalination Plant.

According to the Attorney-General, the US$235 million amount awarded represents 58.4% of the benchmark monetary claim. The International Chamber of Commerce (ICC) arbitration tribunal rejected the company’s claim for about US$402 million in unpaid water charges but awarded it US$235 million in termination payments.

The tribunal also directed Ghana to reimburse 58.4% of the claimants’ reasonable legal and representation costs.

The dispute follows the termination of a Water Purchase Agreement between Befesa Desalination Developments Ghana Limited and the Ghana Water Company Limited (GWCL). The arbitration proceedings were initiated by Befesa Desalination Developments Ghana Limited as the company behind the project and Standard Bank of South Africa Limited in October 2024.

In a statement issued on Wednesday, September 23, 2026, the Attorney-General said the tribunal found that Befesa had validly terminated the agreement and was therefore entitled to contractual termination payments.

However, the tribunal ruled that the US$402 million claim for unpaid charges could not be recovered together with the termination payments.

The US$235 million award, which is net of taxes, includes interest calculated up to March 31, 2026. Further interest on the debt component will continue to accrue from April 1, 2026.

A separate arbitration case was also brought by Befesa against the Republic of Ghana under the state guarantee. The Attorney-General said the decision in that case largely followed the ruling against Ghana Water and held the state responsible for the utility’s obligations.

Meanwhile, the Attorney General notes that before the award government was negotiating with Befesa to acquire the Teshie Desalination Plant. The purchase if it is agreed to, will ensure that the state owns and run the plant so as not to incur additional cost and for Government to be able to supply water to the people the plant was meant to serve.

The Attorney-General said efforts are being made to conclude the negotiations in the hope that Ghana will not have to pay the full amount as awarded.

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