General News of 2026-09-22
Accra Desalination Plant Dispute: Ghana ordered to pay $235m
Befesa Desalination Development Ghana (BDDG), a subsidiary of Spanish company Grupo Cox, has reportedly been awarded US$235 million in two disputes involving the termination of its agreement to operate the Accra desalination plant.
According to a report by thelawplatform.online on Tuesday, September 22, 2026, the disputes were between BDDG and the Republic of Ghana, and between BDDG and the Ghana Water Company Limited (GWCL).
'Teshie Desalination Project was set up to milk the country' - Asabee
The report, which sourced Grupo Cox, said that the decisions were issued on September 17, 2026, following arbitration proceedings that began in 2025.
The company said the US$235 million compensation relates to the termination of the Water Purchase Agreement (WPA) for the desalination project.
In one of the cases, GWCL has also been ordered to pay part of BDDG’s legal costs.
In the second case, the panel handling the dispute ruled that Ghana is responsible for paying the amounts awarded under a guarantee issued for the project.
However, the decision prevents BDDG from receiving the same money twice under the two cases.
The disputes reportedly also included claims against BDDG regarding a US$144.5 million claim, which was dismissed by the panels.
The arbitration followed years of problems with the Accra desalination plant at Teshie-Nungua, which started operations in 2015.
A 2024 government review of public-private partnership projects identified several challenges affecting the plant, including frequent power outages that affected its operations.
The legal platform added that in May 2024, BDDG reportedly said the plant had stopped operating because heavy rainfall had created unsafe conditions.
A later study found structural problems and weak reinforcement at the facility, while GWCL attributed the problems to poor maintenance and neglect.
The project also faced financial challenges, with the government and GWCL reportedly struggling to make payments on time.
GWCL shuts down Teshie Desalination plant again
These financial and operational problems led to discussions about changing the project and reviewing the Water Purchase Agreement before the agreement was eventually terminated.
Meanwhile, the report stated that although the two cases have ended with decisions in favour of BDDG, the matter may not be completely settled yet as the parties are still holding talks to find an agreement on how the money awarded will be paid.
MAG/VPO
Why Is Flying Within Ghana So Expensive? AWA Founder Explains
