Gov’t already in advanced talks to buy Teshie desalination plant to avert $235m payout

The government of Ghana says it has made significant progress in negotiations to acquire the Teshie Desalination Plant from Befesa at a price “much lower” than the amounts sought in arbitration, as it seeks to avoid paying the US$235 million award against Ghana Water Company Limited (GWCL). The Office of the Attorney-General disclosed this in a statement on Wednesday, September 23, following the International Chamber of Commerce (ICC) tribunal’s final award in the dispute over the plant’s Water Purchase Agreement. “Despite the commencement of arbitral proceedings and before the final award, the Government of Ghana had entered into negotiations with Befesa to purchase the Teshie Desalination Plant at a price much lower than the amounts sought from the arbitration,” the statement said.

The Government said the proposed purchase would secure full state ownership of the facility and prevent additional costs beyond those necessary to ensure continued water supply to about one million residents in eastern Accra. “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 Attorney-General’s statement added. Read Also: Ghana Water ordered to pay $235m over Teshie desalination plant dispute Government says it hopes to conclude the negotiations “within the shortest possible time” to enable the plant to return to full operation. Award puts pressure on efforts to resolve dispute The negotiations come after an ICC tribunal ordered Ghana Water to pay US$235 million, net of taxes, to Befesa Desalination Developments Ghana Ltd in termination payments arising from the water purchase agreement. The tribunal found that Befesa had validly terminated the agreement but rejected its…