The Executive Secretary of the Public Utilities Regulatory Commission (PURC), Dr Shafic Suleman, says the Finance Ministry is prepared to bear the full financial burden of resolving the contractual dispute involving the Teshie desalination plant.
His comments follow an arbitration ruling directing Ghana Water Limited (GWL) to pay US$235 million to Befesa Desalination Developments Ghana Limited, the plant’s operator, over a dispute linked to the termination of a water purchase agreement.
Speaking on the Citi Breakfast Show on Tuesday, November 10, Dr Suleman disclosed that engagements with the company had resulted in an indication that it was willing to accept approximately US$80 million as a full settlement.
He said the proposed settlement could resolve the dispute and create the conditions for the facility to resume operations.
He explained that Ghana Water Limited was initially expected to contribute US$10 million towards the settlement. However, Finance Minister Dr Cassiel Ato Forson later indicated that the government would take full responsibility for the settlement cost.
“They said Ghana Water should raise about US$10 million. We have tried our best, but the Finance Minister has indicated that government will take up the entire cost.
“We are hoping that, by the grace of God, the Finance Minister can at least make some commitment to the company by the end of the year so they can commence operations,” he said.
Dr Suleman expressed optimism that the Finance Minister would commit the necessary funds to the company before the end of the year to pave the way for the plant’s resumption of operations.
He confirmed that the facility was operationally ready and would be transferred fully to Ghana Water Limited (GWL) for management once the outstanding contractual issues had been resolved.
However, he questioned GWL’s ability to manage the facility sustainably over the long term, although he expressed confidence in the technical competence of its staff.
The dispute stems from the termination of a water purchase agreement between GWL and Befesa Desalination Developments Ghana Limited, which is 95 per cent owned by Spanish infrastructure company Cox.
On September 21, Cox announced that an International Chamber of Commerce arbitration tribunal had issued two final decisions on September 17, ordering GWL to pay US$235 million, net of taxes.
The company added that interest on the award had been accruing from April 1, 2026, and would continue until the amount was fully paid.
