Ghana Water Limited has been ordered to pay US$235 million to the company behind the Teshie-Nungua desalination plant after an international arbitration tribunal ruled against the state-owned water utility in a dispute over the termination of a water purchase agreement.

The award, issued by the International Chamber of Commerce (ICC) on September 17, 2026, relates to two arbitration proceedings involving Ghana Water Limited and the Republic of Ghana.

Cox Infrastructure Group, which owns a 95 percent stake in Befesa Desalination Developments Ghana Limited (BDDG), announced the decision on Monday, September 21.

According to Cox, the $235 million award, net of taxes, represents payments due to BDDG following the termination of the agreement under which Ghana Water purchased treated water from the desalination facility.

Interest on the amount is to accrue from April 1, 2026, until the outstanding sum is fully paid. 

Ghana Water has also been directed to contribute towards BDDG’s legal expenses incurred during the arbitration proceedings. 

The tribunal further dismissed most of the counterclaims filed by Ghana Water including a $144.5 million claim against the project company.

The Republic of Ghana is also liable under the state guarantee attached to the project. 

However, the ruling does not permit the project company to recover the same amount twice. 

Plant remains out of service

The arbitration stems from a long-running disagreement over the Teshie-Nungua desalination facility which was developed under a build-own-operate-transfer arrangement.

The plant was designed to produce about 60,000 cubic metres of potable water each day and supplement supply to communities in the Teshie-Nungua corridor and surrounding areas. 

Government records indicate that the project entered commercial operation in 2015 after construction began in 2012. 

The facility has remained out of operation since October 2025 following Ghana Water’s decision to shut it down amid unresolved contractual and maintenance concerns.

Its suspension has disrupted water supply to communities in Teshie, Nungua, Spintex, Sakumono and parts of La with affected residents turning to private tankers, boreholes and other alternative sources.

The financial disagreement is closely linked to the cost of water produced by the facility. 

Ghana Water has faced a mismatch between the cost of procuring desalinated water and the revenue generated from selling water to consumers.

Earlier regulatory documents show that the desalination project was structured around the purchase of up to 60,000 cubic metres of water per day by Ghana Water under a long-term water purchase agreement. 

Government attempts settlement

In February 2026, President John Mahama directed the Finance Minister, the Attorney-General and Ghana Water to engage the shareholders of the desalination project in an effort to resolve the dispute and restore the facility to operation.

Ghana Water Managing Director, Adam Mutawakilu, subsequently indicated that the utility was pursuing a settlement that would pave the way for the plant to resume supplying water to communities affected by the shutdown.

The latest arbitration award, however, adds a potentially significant financial obligation to the state.

Cox has indicated that the $235 million represents amounts awarded to BDDG within the project’s financial structure and should not automatically be interpreted as cash that will ultimately accrue to Cox.

The company said the final economic impact would depend on factors including the actual recovery of the award, the project’s financing arrangements, third-party rights and the applicable accounting treatment. 

The parties are also continuing discussions towards an amicable resolution. 

For Ghana, the ruling adds another major international arbitration liability at a time when the government is dealing with financial pressures arising from disputes involving public infrastructure and investment projects.