Ghana in talks to buy Teshie plant, avert US$235m arbitration payment – Attorney-General
Government seeks full ownership of plant while avoiding full arbitration payment.
Ghana now owes US$235 million due to the Teshie-Nungua Desalination Plant, a facility intended to supply water to communities such as Teshie, Nungua, and Spintex. Despite being constructed in 2015 at a cost of approximately US$126 million, the plant remains idle due to disputes over a Water Purchase Agreement. The Ghanaian project company, Befesa Desalination Developments Ghana Limited, has taken the matter to international arbitration, but Ghana Water Limited has shut down the plant in September 2026 due to unresolved maintenance and contract issues.
The International Chamber of Commerce has since awarded Ghana Water Limited the sum of US$235 million, leaving the Republic of Ghana responsible under a state guarantee. The plant was designed to produce 60,000 cubic meters of water daily for about 500,000 people, but residents have faced water rationing and alternative water sources.
The project's costs far exceed its sales price, creating a significant gap, while the utility company is obligated to pay a monthly capacity charge regardless of operation. Efforts to negotiate a settlement have continued, but the future of the plant and Ghana's water obligations remain unresolved.
Written by urgent.news from GBC Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Idle Teshie-Nungua desalination plant leaves Ghana with $235m bill gbcghanaonline.com
