The Office of the Attorney-General has responded to the US$235 million arbitration award against Ghana Water Company Limited (GWCL) over the Teshie Desalination Plant, saying the tribunal rejected a separate US$402 million claim for alleged unpaid water charges.

In a statement issued on Wednesday, September 23, 2026, the Attorney-General said the International Chamber of Commerce (ICC) tribunal found that Befesa Desalination Developments Ghana Ltd had validly terminated its Water Purchase Agreement (WPA) with Ghana Water and was entitled to contractual termination payments.

The award, issued in ICC Case No. 29029/CPB, followed arbitration proceedings initiated by Befesa and Standard Bank of South Africa Limited against Ghana Water on October 23, 2024.

The tribunal dismissed the claim for approximately US$402 million in unpaid charges, ruling that it could not be recovered alongside the termination payments.

Read Also: Ghana Water ordered to pay $235m over Teshie desalination plant dispute

“The Tribunal held that Claim 1 and Claim 2 could not be recovered cumulatively,” the statement said.

It added that the tribunal awarded the claimants US$235 million, net of taxes, in termination payments, including pre-award interest calculated to March 31, 2026. Further interest on the debt component will accrue from April 1, 2026.

The Attorney-General said the award represented 58.4% of the monetary claim, using the US$402 million claim as the benchmark. The tribunal consequently ordered reimbursement of 58.4% of the claimants’ reasonable defence and representation costs.

A parallel arbitration, ICC Case No. 29030/CPB, was brought by Befesa against the Republic of Ghana under the state guarantee. The Attorney-General said the tribunal’s award in that case substantially followed the decision against Ghana Water and principally held the state liable for the utility’s obligations.

The awards arise from the termination of the water purchase agreement for the Teshie desalination plant, which supplies water to parts of eastern Accra.

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

The Attorney-General’s statement also addressed the government’s efforts to acquire the facility, saying negotiations with Befesa had begun before the final award was issued.

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

“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 statement said.

Government says the proposed acquisition would give the state full ownership of the plant and help restore its operations.

It hopes to conclude negotiations “within the shortest possible time” to ensure the facility returns to full operation.