Ghana is facing a potential US$235 million liability following two arbitration awards in favour of Befesa Desalination Developments Ghana Limited (BDDG) over the termination of the Water Purchase Agreement (WPA) for the Accra desalination plant.
The arbitral tribunals issued the awards on September 17, 2026, in separate disputes involving BDDG and the Republic of Ghana, and BDDG and the Ghana Water Company Limited (GWCL), according to a corporate disclosure by Grupo Cox, the Spanish company associated with the desalination project.
The awards relate to compensation arising from the termination of the WPA governing the Teshie-Nungua desalination project.
In one of the proceedings, GWCL was ordered to partially reimburse BDDG for legal costs. In the second arbitration, the tribunal determined that, under a guarantee issued in connection with the project, the Republic of Ghana is obliged to pay the amounts awarded.
The awards, however, contain safeguards against double recovery, meaning BDDG cannot recover the same amounts more than once under the two proceedings.
The tribunals also dismissed counterclaims brought against BDDG, including one valued at US$144.5 million, according to Grupo Cox.
The two arbitration cases were filed in 2025 after years of operational and financial difficulties surrounding the Accra desalination project.
The Teshie-Nungua plant, which commenced operations in 2015, was the first desalination plant of its kind in West Africa and was developed under a public-private partnership arrangement.
A 2024 review of the country’s Public-Private Partnership (PPP) projects identified several challenges affecting the facility, including frequent power supply interruptions that affected the efficiency of its operations.
In May 2024, BDDG reportedly stated that the plant had become inoperative because of unsafe conditions following heavy rainfall.
A subsequent study identified structural defects and inadequate reinforcement, which reportedly left the facility vulnerable to breakdowns during adverse weather conditions.
GWCL, however, attributed the problems to poor maintenance and neglect.
The operational challenges were compounded by financial difficulties involving the project.
According to the 2024 review, the government and GWCL experienced difficulties in meeting their payment obligations to the project on time, with the delays linked to broader fiscal constraints.
The financial pressures, coupled with the operational difficulties, prompted consultations among stakeholders on restructuring the project and reviewing the WPA.
The subsequent termination of the agreement eventually became the basis for the arbitration proceedings involving BDDG, Ghana and GWCL.
Company Details
Corporate information supplied on BDDG shows that its full registered name is Befesa Desalination Developments Ghana Limited.
The company was incorporated on January 21, 2011, and commenced business on January 24, 2011. It is currently listed as not in good standing, with its last filed annual returns dating back to 2020. Its beneficial ownership information has also not been updated.
The listed directors are Henry Kwame Ofori, Jaime Ortiz Molina, Alberto De Vergara Pardeiro, David Jimenez-Blanco and Sosuke Yamazaki.
Its shareholders are Hydrocol Limited, Abengoa Water Investments Ghana BV and Daye Water Investment Ghana BV.
Hydrocol Limited holds 658,978 shares for a cash consideration of GH¢1,492,123, while Abengoa Water Investments Ghana BV holds 6,721,491 shares valued at GH¢15,219,650. Daye Water Investment Ghana BV holds 5,798,904 shares valued at GH¢13,130,679.
Hydrocol Limited is the only Ghanaian-registered company among the three shareholders. The other two are foreign-registered companies, whose ultimate shareholding structures were not available in the information supplied.
Hydrocol Limited was incorporated on January 20, 2010, and is also listed as not in good standing. Its last annual returns were filed in 2021.
Its directors are Henry Kwame Ofori and Marietta Brew Appiah-Oppong, while Henry Kwame Ofori is listed as its sole shareholder.
Despite the arbitration awards, the matter may not yet have reached its final practical stage.
Grupo Cox said the parties were continuing negotiations aimed at reaching an amicable settlement, adding that the outcome of those discussions could determine how the awards are implemented and paid, and whether further proceedings relating to enforcement will become necessary.
By Ernest Kofi Adu