By: Kenneth Appiah Bani
The government is negotiating with Befesa Desalination Developments Ghana Ltd to acquire the Teshie Desalination Plant for an amount below the US$235 million awarded in an international arbitration case involving the facility.
The proposed acquisition is part of the government’s efforts to resolve the long-running dispute while protecting the country’s financial interests and ensuring that the desalination plant continues to provide water to communities in the eastern parts of Accra.
The Office of the Attorney-General and Minister of Justice has disclosed that negotiations between the government and Befesa began before the international arbitration process was concluded and the final decision was issued.
This means the government had already been exploring a possible settlement and acquisition of the facility while the legal proceedings were ongoing.
Under the proposed arrangement, the state would take full ownership of the Teshie Desalination Plant. The government believes this would provide greater control over the facility and help prevent further costs that could arise from the dispute.
The US$235 million arbitration award has created a significant financial obligation, making the government’s ongoing negotiations particularly important. By seeking to purchase the plant for less than the amount awarded, the government is aiming to reach an arrangement that would reduce the financial burden on the state while also securing ownership of an important water infrastructure asset.
Ensuring Water Supply to About One Million People
Beyond the financial implications, the government says the continued operation of the Teshie Desalination Plant is important for water supply in Accra.
The facility supplies treated water to communities in parts of eastern Accra and is estimated to serve about one million people.
The proposed acquisition would therefore seek to ensure that the plant remains operational and continues contributing to the supply of potable water to residents.
For communities that depend on the facility, any disruption to its operations could have consequences for access to reliable water. The government’s negotiations are consequently being viewed in the context of both the legal dispute and the need to protect the continuity of water supply.
Government Seeks Long-Term Solution
The proposed purchase would also give the government greater control over the future management and operation of the facility.
Rather than continuing to deal with the plant primarily through the framework of the existing dispute, full state ownership could allow the government to determine how the facility is managed and integrated into the country’s wider water supply system.
The government says the negotiations are aimed at finding a solution that addresses the financial implications of the arbitration while safeguarding the interests of the Ghanaian public.
The outcome of the discussions with Befesa will determine whether an agreement can be reached below the US$235 million arbitration award.
If an agreement is concluded, the acquisition would represent a major step in resolving the dispute and would place the Teshie Desalination Plant fully under state ownership.
For now, negotiations remain ongoing as the government works towards an arrangement that it says will minimise additional costs, secure an important national asset and protect water supply to approximately one million people in eastern Accra.
