Cox Awarded €198 Million in Ghana Desalination Plant Arbitration
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TL;DR
- Cox wins €198 million arbitration against Ghana over desalination contract.
- The award is binding, with Ghana required to pay plus interest and legal costs.
- Most counterclaims by Ghana were rejected by the tribunal.
- Parties are still engaged in negotiations despite the award.
Overview
Cox, through Befesa Desalination Developments Ghana Limited, has won a major arbitration against Ghana Water Company Limited and the Republic of Ghana.
The dispute centered on the termination of a water purchase agreement related to the Accra desalination plant.
Final and binding arbitral awards require Ghana to pay €198 million to Cox, with further interest and partial legal cost reimbursement.
Contraclaims by Ghana were mostly dismissed, and the parties are still negotiating a potential amicable solution.
What Happened
Cox, via its subsidiary Befesa Desalination Developments Ghana Limited, engaged in an arbitration with Ghana Water Company Limited and the Republic of Ghana concerning termination of the Accra plant's water purchase agreement.
The arbitral tribunal issued final and binding awards in Cox's favor, ordering Ghana to pay €198 million (approx. $235 million), plus accrued interest and partial reimbursement of Cox's arbitration-related legal fees.
Ghana's contraclaims, including a significant one for approximately $144.5 million, were largely dismissed by the tribunal.
The Republic of Ghana is required, under a sovereign guarantee for the project, to ensure payment of the recognized amounts, but no double recovery may occur for the Cox subsidiary.
The awarded amounts are gross and contingent on effective recovery, project structure, and any applicable challenge mechanisms at the seats of arbitration.
Despite the award, Cox and its counterparties continue to negotiate an amicable settlement, and Cox has committed to updating the market on collection progress.
Context
This dispute arose over the premature termination of a major water purchase agreement related to the Accra desalination plant, an infrastructure project intended to supply potable water to Ghana's capital region.
Cox, a Spanish industrial group, held its interest in the project through Befesa Desalination Developments Ghana Limited, with a 95% shareholding.
International arbitration is frequently used to resolve such infrastructure and sovereign contract disputes, particularly where project finance arrangements and state guarantees are involved.
Why It Matters
- The decision represents one of the largest arbitration awards involving a European infrastructure company and an African state in 2026.
- It clarifies Ghana's legal obligations under sovereign guarantees for strategic public infrastructure projects.
- The award demonstrates the role of international arbitration in resolving cross-border contractual disputes in the water infrastructure sector.