The Government of Ghana is negotiating with Befesa to acquire the Teshie Desalination Plant as part of efforts to resolve a long-running dispute over the facility and restore it to full operation.
The Office of the Attorney-General and Ministry of Justice said discussions on the possible purchase began even before an arbitral tribunal issued its final award in the dispute involving Befesa Desalination Developments Ghana Ltd, Standard Bank of South Africa Limited and the Ghana Water Company Limited.
According to the Attorney-General’s Office, the government is seeking to purchase the plant at a price “much lower than the amounts sought from the arbitration.”
The proposed acquisition would give the state full ownership of the facility while helping it avoid additional costs beyond what is required to maintain the supply of water.
Government believes taking over the plant could help secure water supply for about one million residents in the eastern part of Accra who depend on the Teshie facility.
The desalination plant has been at the centre of a dispute over Ghana Water Company’s obligations under the Water Purchase Agreement.
The Attorney-General’s Office said significant progress had been made in negotiations aimed at avoiding payment of the $235 million arbitration award.
It added that government was hopeful of concluding the negotiations “within the shortest possible time” to enable the plant to return to full operation.
