General News of 2026-09-23
Attorney General explains $235m Teshie desalination arbitration award against GWCL
The Attorney General has explained the US$235 million arbitration award against the Ghana Water Company Limited (GWCL) over the Teshie Desalination Plant, stressing that the tribunal rejected a separate US$402 million claim for alleged unpaid water charges.
In a statement issued on Wednesday, September 23, 2026, the Attorney General said an International Chamber of Commerce (ICC) tribunal found that Befesa Desalination Developments Ghana Ltd had validly terminated its Water Purchase Agreement (WPA) with Ghana Water and was entitled to contractual termination payments.
The award, issued in ICC Case No. 29029/CPB, followed arbitration proceedings initiated by Befesa and Standard Bank of South Africa Limited against Ghana Water on October 23, 2024.
However, the tribunal dismissed the claim for approximately US$402 million in unpaid charges, ruling that the amount could not be recovered alongside the termination payments.
“The Tribunal held that Claim 1 and Claim 2 could not be recovered cumulatively,” the Attorney General’s statement said.
The tribunal subsequently awarded the claimants US$235 million, net of taxes, in termination payments, including pre-award interest calculated to March 31, 2026.
Further interest on the debt component will accrue from April 1, 2026.
The Attorney General said the US$235 million award represented 58.4% of the monetary claim, using the US$402 million claim as the benchmark.
Accra Desalination Plant Dispute: Ghana ordered to pay $235m
The tribunal therefore ordered Ghana Water to reimburse 58.4% of the claimants’ reasonable defence and representation costs.
A parallel arbitration, ICC Case No. 29030/CPB, was also brought by Befesa against the Republic of Ghana under the state guarantee.
According to the Attorney-General, the tribunal’s award in that case substantially followed the decision against Ghana Water and principally held the state liable for the utility’s obligations.
The disputes stem from the termination of the water purchase agreement for the Teshie Desalination Plant, which supplies water to parts of eastern Accra.
The Attorney-General also disclosed that government had begun negotiations with Befesa to acquire the facility before the final arbitration award was issued.
“The award notwithstanding, 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.
Government believes acquiring the facility would give the state full ownership of the plant and help restore its operations.
It is hoping to conclude the negotiations ‘within the shortest possible time’ to ensure the desalination facility returns to full operation.
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