Government to bear full cost of Teshie desalination plant settlement – PURC

The government is expected to take responsibility for the full cost of settling the contractual dispute involving the Teshie desalination plant, Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman, has said.

The disclosure comes after an arbitration tribunal ordered Ghana Water Limited (GWL) to pay US$235 million to Befesa Desalination Developments Ghana Limited, the company responsible for operating the facility, following a dispute over the termination of a water purchase agreement.

Speaking on the Citi Breakfast Show on Tuesday, November 10, Dr Suleman said negotiations with the company had led to an indication that it was prepared to accept about US$80 million to bring the matter to an end and allow operations at the plant to resume.

He explained that GWL was initially expected to contribute US$10 million towards the settlement. However, Finance Minister Dr Cassiel Ato Forson had since informed the PURC that the government would cover the entire amount.

“They said Ghana Water should raise about US$10 million. We have tried our best, but the Finance Minister has indicated that government will take up the entire cost,” he said.

Dr Suleman expressed optimism that the Finance Minister would make a financial commitment to the company before the end of the year to facilitate the reopening of the facility.

He said the plant was technically ready to operate and would be transferred fully to GWL for management once the outstanding matters had been resolved.

While expressing confidence in the technical capabilities of GWL’s workforce, he questioned whether the company had the capacity to manage the facility effectively over the long term.

The dispute arose after GWL terminated its water purchase agreement with Befesa Desalination Developments Ghana Limited, which is 95 per cent owned by Spanish infrastructure company Cox.

On September 21, Cox announced that an International Chamber of Commerce arbitration tribunal had issued two final decisions on September 17, directing GWL to pay US$235 million, net of taxes.

Interest on the award has been accumulating since April 1, 2026, and will continue until the amount is paid.

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