Ghana Water Limited (GWL) and the Government of Ghana have been ordered to pay about US$235 million following an international arbitration dispute involving the Teshie-Nungua Desalination Plant.
The award was issued in two final decisions by an International Chamber of Commerce (ICC) arbitration tribunal on September 17, 2026, in favour of Befesa Desalination Developments Ghana Limited, the project company associated with Spanish infrastructure group Cox.
Cox holds a 95 per cent stake in the project company.
The dispute relates to the termination of a long-term Water Purchase Agreement under which GWL was required to purchase treated water produced by the desalination plant.
According to reports on the tribunal’s decision, the US$235 million award is net of taxes and relates to outstanding payments arising from the termination of the agreement. Interest on the award began accruing from April 1, 2026, and will continue until the amount is fully settled.
The arbitration decision adds a significant financial obligation to GWL, which has previously raised concerns about the cost of operating the desalination facility and the financial commitments associated with the agreement.
The Teshie-Nungua Desalination Plant was commissioned in April 2015 as a public-private partnership under a 25-year Build-Own-Operate-Transfer (BOOT) arrangement. The US$126 million facility was designed to produce about 13 million gallons of potable water daily, with an intended service area covering Teshie, Nungua, Spintex, Baatsona and Sakumono.
The project was developed to supplement conventional water supplies to communities in parts of the Greater Accra Region by treating seawater for domestic consumption.
However, the facility has faced operational and financial challenges over the years. GWL has raised concerns about the capacity charges associated with the agreement, including payments reportedly required even when the plant was not operating, as well as the relatively high cost of producing desalinated water.
The disagreements contributed to repeated interruptions in the plant’s operations before it was shut down in October 2025 amid continuing contractual and legal issues.
The arbitration award comes as parts of the Teshie-Nungua area continue to face water supply challenges, with residents experiencing periods of rationing and interruptions.
