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Befesa Desalination Development Ghana (BDDG), a subsidiary of Spanish company Grupo Cox, has secured a combined US$235 million in two arbitration proceedings arising from the termination of a Water Purchase Agreement (WPA) for the Accra desalination plant.
The two disputes, BDDG v. Ghana and BDDG v. Ghana Water Company Limited (GWCL), concluded with awards in favour of BDDG, according to a corporate disclosure by Grupo Cox. The arbitral tribunals issued the awards on 17 September 2026, with the compensation relating to the termination of the WPA governing the desalination project.
US$235 Million Compensation Awarded
According to Grupo Cox, BDDG was awarded US$235 million in compensation in connection with the termination of the Water Purchase Agreement.
The two proceedings filed in 2025 involved different respondents: one was brought against the Republic of Ghana, while the other was against GWCL, the state-owned water utility involved in the project.
GWCL has been ordered to partially reimburse BDDG for legal costs incurred in the first arbitration. A further significant aspect of the second arbitration concerns a guarantee issued in connection with the project. Grupo Cox states that the tribunal hearing that case determined that, under the guarantee, the Republic of Ghana is obliged to pay the amounts awarded.
The award, however, contains safeguards against double recovery, meaning BDDG cannot recover the same amounts more than once under the two proceedings.
$144.5 Million Counterclaim Dismissed
The proceedings also involved counterclaims against BDDG. According to Grupo Cox, the tribunals dismissed the counterclaims, including one valued at US$144.5 million.
How the Dispute Arose
The arbitration proceedings followed years of operational and financial difficulties surrounding the Accra desalination project. The Teshie-Nungua desalination plant, which began operations in 2015, was the first desalination plant of its kind in West Africa.
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A 2024 public review of Ghana's Public-Private Partnership projects documented several challenges affecting the facility. Among them were frequent power supply outages, which affected the efficiency of the plant's operations.
In May 2024, BDDG reportedly stated that the plant had become inoperative because of unsafe conditions resulting from 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.
Financial Difficulties Added to Operational Problems
The technical difficulties were accompanied by financial challenges. According to the 2024 review, the government and GWCL faced difficulties in meeting their payment obligations to the project on time, with the delays linked to broader fiscal constraints.
The financial pressures, together with the operational problems, led to consultations among stakeholders over the restructuring of the project and a review of the Water Purchase Agreement. The subsequent termination of the agreement ultimately became the basis for the arbitration proceedings between BDDG, Ghana and GWCL.
Settlement Talks Continue
Although the arbitral proceedings have concluded with awards in favour of BDDG, the dispute may not yet be practically resolved. Grupo Cox says the parties are continuing negotiations aimed at reaching an amicable settlement.
The next stage could therefore turn on whether the parties are able to agree on the implementation and payment of the awards, rather than allowing the dispute to progress into further proceedings concerning enforcement.
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