Ghana Faces $235 Million Liability in Desalination Arbitration
Ghana is liable for $235 million following arbitration awards in favor of Befesa Desalination Developments Ghana Limited (BDDG).
In Brief
- •Ghana is liable for $235 million following arbitration awards in favor of Befesa Desalination Developments Ghana Limited (BDDG).
- •The awards relate to compensation for the termination of the Water Purchase Agreement (WPA) for the Accra desalination plant.
- •The Teshie-Nungua desalination plant, Ghana's first of its kind, faced operational and financial difficulties, leading to the termination of the WPA.
Why It Matters
This arbitration outcome highlights the challenges faced by public-private partnerships in Ghana, particularly in the water sector. The financial liability underscores the need for better management and oversight of such projects to ensure their sustainability and efficiency. The outcome also raises questions about the broader fiscal constraints affecting Ghana's infrastructure projects.
Key Details
- Arbitration Awards Date
- September 17, 2026
- Total Liability
- $235 million
- Project Commencement
- 2015
- Plant Status
- Inoperative due to unsafe conditions
Context & Background
The Teshie-Nungua desalination plant was developed under a public-private partnership arrangement, marking Ghana's first desalination project in West Africa. The plant's operational challenges, including frequent power supply interruptions and structural defects, have been well-documented in previous reviews.
Original Reporting & Sources
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