Ghana Water Company Limited (GWCL) has been ordered by an International Chamber of Commerce (ICC) arbitration tribunal to pay US$235 million to Befesa Desalination Developments Ghana Limited, the operator of the Teshie desalination plant, following a dispute over the termination of a water purchase agreement.

In October 2025, GWCL shut down the plant without reaching an agreement with the Spanish-owned company over unresolved contractual issues and concerns over maintenance.

Shortly after the case was referred to the International Chamber of Commerce (ICC) for arbitration, the tribunal proceedings lasted about a year, after which Cox announced on Monday, September 21, that the two final decisions had been issued by the ICC on September 17.

Cox said the amount, net of taxes, relates to payments arising from the termination of the agreement under which Ghana Water purchased treated seawater from the plant. Interest on the award will run from April 1, 2026, despite the verdict being delivered in September.

On the other hand, GWCL raised counterclaims, including a US$144.5 million claim. However, the ICC rejected the claims and ordered the utility company to cover part of the company’s legal costs.

Impact of the plant shutdown

According to reports, more than 500,000 residents in Teshie, Nungua, Spintex, Sakumono and La continue to face rationed water supply, with many residents relying heavily on water tankers, boreholes and sachet water.

In February 2026, President John Mahama directed the Finance Minister, the Attorney-General and Ghana Water to negotiate with the plant’s shareholders to resolve the dispute and facilitate the resumption of operations.

Ghana Water Limited Managing Director Adam Mutawakilu subsequently said the utility was working to reach a settlement that would allow the plant to resume supplying water to affected communities.

Cause of dispute

The financial dispute is linked to the cost of water supplied by the plant. Ghana Water had reportedly been purchasing desalinated water at GH¢6.75 per cubic metre, while the approved tariff allowed it to sell the water at GH¢1.47 per cubic metre, resulting in a loss of GH¢5.28 on every cubic metre sold.

The US$126 million plant was commissioned in 2015 under a 25-year build-own-operate-transfer arrangement. It was designed to produce 60,000 cubic metres of water daily to serve up to 500,000 people in the Teshie-Nungua catchment.

Cox acquired the assets of the former Spanish engineering company Abengoa in 2023 and later became the majority owner of the Ghanaian project company.

The latest award adds to Ghana’s exposure to international arbitration claims and puts further financial pressure on the state as it works to resolve disputes involving major infrastructure and investment projects.