Finance Ministry considers $80m settlement to revive Teshie desalination plant

The Finance Ministry has indicated that the government will assume the full financial cost of settling the contractual dispute over the Teshie desalination plant, Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman, has disclosed.

The disclosure follows an arbitration ruling ordering Ghana Water Limited (GWL) to pay US$235 million to Befesa Desalination Developments Ghana Limited, the company operating the facility, 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 with the company had resulted in an indication that it was willing to accept about US$80 million to settle the dispute and pave the way for the resumption of operations.

He said GWL was initially expected to raise US$10 million towards the settlement, but Finance Minister Dr Cassiel Ato Forson had subsequently indicated that government would take up 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,” he said.

Dr Suleman expressed hope that the Finance Minister would make a financial commitment to the company before the end of the year to enable it to resume operations.

“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.

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 plant 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.