The Government of Ghana says it is in advanced negotiations with Befesa Desalination Developments Ghana Ltd to purchase the Teshie Desalination Plant at a price significantly lower than the US$235 million awarded in an arbitration over the facility.
The negotiations, according to the Office of the Attorney-General and Ministry of Justice, are intended to secure full state ownership of the plant while avoiding payment of the full termination award and ensuring the continued supply of water to about one million residents in the eastern part of Accra.
In a statement issued on September 23, 2026, the Attorney-General said the government had entered into negotiations with Befesa to purchase the plant despite the commencement of arbitration proceedings.
“Significant progress has been made in the negotiations for the purchase of the plant to avoid the payment of the said $235 million,” the statement said.
The government expressed hope of concluding the negotiations “within the shortest possible time” to enable the plant to return to full operation.
The proposed purchase follows a final award by an arbitral tribunal in ICC Case No. 29029/CPB, which found that Befesa had validly terminated its Water Purchase Agreement with Ghana Water Company Limited and awarded US$235 million in termination payments to Befesa and Standard Bank of South Africa Limited.
The claimants had initially sought approximately US$402 million in alleged unpaid water charges in addition to about US$235 million in contractual termination payments.
The tribunal dismissed the US$402 million claim in its entirety and awarded the US$235 million termination payment.
However, the government says the ongoing negotiations with Befesa provide an opportunity to acquire the plant at a cost lower than the amounts involved in the arbitration.
Under the proposed arrangement, the state would take full ownership of the Teshie desalination plant, which the government says would help guarantee continued water supply to approximately one million people in eastern Accra.
The Attorney-General’s statement did not disclose the purchase price currently being negotiated with Befesa or provide a specific deadline for concluding the transaction.
It said the government hopes to finalise the negotiations as soon as possible and restore the plant to full operation.
