Ghana’s Attorney-General and Minister for Justice, Dr Dominic Ayine, has explained the financial implications of the International Chamber of Commerce (ICC) arbitration over the Teshie Desalination Plant, stressing that Ghana was not ordered to pay the full approximately US$402 million initially claimed by Befesa and Standard Bank.
The clarification follows two final arbitral awards issued in September 2026 in disputes involving Befesa Desalination Developments Ghana Limited, Standard Bank of South Africa Limited, Ghana Water Company Limited and the Republic of Ghana.
According to the Office of the Attorney-General, the tribunal found that Befesa had validly terminated its Water Purchase Agreement with Ghana Water and was entitled to contractual termination payments. The tribunal, however, rejected the separate claim for approximately US$402 million in alleged unpaid water charges, ruling that the two claims could not be recovered cumulatively.
The tribunal instead awarded approximately US$235 million, net of taxes, to the claimants as termination payments. The amount included pre-award interest calculated to March 31, 2026, while further interest on the debt component is accruing from April 1, 2026.
The Attorney-General’s Office said the US$235 million award represented 58.4 per cent of the approximately US$402 million monetary claim used as the benchmark. The claimants were consequently awarded 58.4 per cent of their reasonable defence and representation costs.
A parallel arbitration was also brought against the Republic of Ghana under the state guarantee. The Attorney-General said the decision in that case substantially followed the award involving Ghana Water and principally held Ghana responsible for liabilities arising from the utility’s obligations.
Meanwhile, the government has been negotiating with Befesa to acquire the Teshie Desalination Plant at a price significantly below the amounts involved in the arbitration. The negotiations began before the final award was issued.
The proposed acquisition would give the state full ownership of the facility while helping secure continued water supply to communities in the eastern part of Accra. The government says significant progress has been made in the negotiations and hopes to conclude them so the plant can return to full operation.
The Teshie Desalination Plant has been at the centre of a prolonged contractual dispute involving its Water Purchase Agreement with Ghana Water. The latest developments have placed renewed attention on the financial obligations attached to the project, the arbitration award and the government’s efforts to reach a negotiated resolution.
For now, the government’s position is that the US$235 million award should be viewed alongside the tribunal’s rejection of the separate US$402 million claim and the ongoing negotiations to potentially acquire the facility at a lower cost.
