The Finance Ministry has indicated its willingness to take full responsibility for the proposed settlement of the dispute over the Teshie desalination plant, potentially paving the way for the facility to resume operations.

Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman, disclosed this on Tuesday, November 10, following an arbitration ruling that ordered Ghana Water Limited (GWL) to pay US$235 million to Befesa Desalination Developments Ghana Limited, the plant’s operator.

Speaking on the Citi Breakfast Show, Dr Suleman said negotiations with Befesa had resulted in the company indicating its willingness to accept about US$80 million to settle the dispute and allow the plant to return to service.

He said GWL was initially expected to contribute US$10 million towards the settlement, but Finance Minister Dr Cassiel Ato Forson had subsequently indicated 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,” Dr Suleman said.

He expressed hope that the Finance Ministry would make a financial commitment to Befesa before the end of the year to enable the company to resume operations.

“We are hoping that, by the grace of God, the Finance Minister can at least make some commitment to the company by the end of the year so they can commence operations,” he added.

Dr Suleman said the plant was capable of operating and would be handed over entirely to GWL for management once the outstanding issues had been resolved.

However, he raised concerns about GWL’s ability to manage the facility effectively over the long term, although he expressed confidence in the technical expertise of its workforce.

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

Cox announced on September 21 that an International Chamber of Commerce arbitration tribunal had issued two final decisions on September 17, ordering GWL to pay US$235 million, net of taxes. Interest on the award has been accruing since April 1, 2026.

Government to assume US$80m Teshie desalination plant settlement – PURC

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