The Government of Ghana is negotiating the purchase of the Teshie Desalination Plant from Befesa as it seeks to resolve the dispute surrounding the facility and restore it to full operation.
The Office of the Attorney-General and Ministry of Justice said negotiations had been ongoing even before the arbitral tribunal issued its final award in the dispute between Befesa Desalination Developments Ghana Ltd, Standard Bank of South Africa Limited and Ghana Water Company Limited.
According to the Office, the government is seeking to acquire the plant at a price “much lower than the amounts sought from the arbitration”.
It said the proposed purchase would allow the state to take full ownership of the facility while avoiding additional costs beyond what is necessary to guarantee the continued supply of water.
The government believes the acquisition could help secure water supply for about one million residents in the eastern part of Accra, who are among the communities served by the Teshie facility.
The plant has been at the centre of a dispute over Ghana Water’s obligations under the Water Purchase Agreement.
“Significant progress has been made in the negotiations for the purchase of the plant to avoid the payment of the said $235 million,” the Attorney-General’s Office said.
It added that government hoped to conclude the negotiations “within the shortest possible time” so that the plant could “come back into full operation.”