How a $125m plant meant to fix Teshie-Nungua’s water crisis became a $235m judgment debt
Ghana Water Company Limited has been ordered to pay $235 million to the Spanish owners of the Teshie-Nungua desalination plant, a facility built to end chronic shortages in the enclave and shut since October 2025. The Republic of Ghana is liable for the money under a sovereign guarantee Parliament approved in 2012. Two final arbitral […]
The Spanish owners of the Teshie-Nungua desalination plant in Ghana have been ordered to pay $235 million to the Ghana Water Company Limited, a facility built to end chronic water shortages in the enclave. The plant, which cost $125 million to build, was shut down in October 2025 over unresolved contractual obligations and a culture of maintenance failures.
Ghana is liable for the payment under a sovereign guarantee approved by Parliament in 2012. The $235 million includes termination payments under the Water Purchase Agreement, with interest accruing from April 2026 until the payment is made. The utility must also partially reimburse the company's legal costs. The award is nearly double the project's original cost.
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