Befesa Desalination Developments Ghana Limited has secured two final awards in an international arbitration dispute involving the Teshie-Nungua desalination plant, with Ghana Water Limited (GWL) ordered to pay approximately US$235 million.
The arbitration awards were issued on Thursday, September 17, 2026, by a tribunal constituted under the rules of the International Chamber of Commerce (ICC).
Befesa was represented by Kimathi & Partners, Corporate Attorneys, which served as Ghanaian co-counsel alongside international law firm Eversheds Sutherland.
Ghana Water Ordered to Pay US$235 Million
The tribunal directed Ghana Water Limited, referred to in the awards by its former name, Ghana Water Company Limited (GWCL), to pay Befesa US$235 million net of taxes.
The amount relates to the termination of the Water Purchase Agreement (WPA) under which Ghana’s water utility purchased treated seawater produced by the Teshie-Nungua desalination facility.
Interest on the awarded amount is calculated from April 1, 2026, until the full payment is made.
The tribunal also substantially dismissed counterclaims brought against the desalination project company, including a separate claim valued at approximately US$144.5 million.
In addition, Ghana Water was ordered to contribute towards Befesa’s legal costs arising from the arbitration proceedings.
Ghana Government Liable Under Project Guarantee
The Government of Ghana had provided a guarantee for the desalination project.
Under the terms of that guarantee, the tribunal also found the government liable for the amounts awarded to the project company.
However, the arbitration awards contain provisions preventing Befesa from recovering the same amounts more than once.
Teshie-Nungua Desalination Plant Capacity
The Teshie-Nungua desalination plant has the capacity to produce approximately 60,000 cubic metres of water per day.
The facility was developed to improve water supply to several communities in the Greater Accra Region, including Teshie, Nungua, Spintex, Baatsona and Sakumono.
The project was designed to supplement Ghana’s water supply by using seawater desalination technology to produce treated water for distribution.
Cox Owns Majority Stake in Project
The desalination project company is majority-owned by Cox, the Spanish infrastructure group, which holds a 95 percent stake.
Cox announced the arbitration awards on Monday, September 21, 2026, following the tribunal’s decision.
Despite the outcome of the arbitration, Cox said discussions between the parties remain open in an effort to reach an amicable settlement.
The company indicated that these discussions are being conducted without prejudice to the project company’s rights under the final arbitration awards.
The case is expected to remain significant for Ghana’s water infrastructure sector, public-private partnerships, desalination projects and government-backed infrastructure agreements, particularly given the financial obligations arising from the tribunal’s decision.
Source: newsthemegh.com