The Teshie Desalination Plant, established to address water supply challenges in Accra, has instead become a significant financial and operational burden on the Ghana Water Company Limited (GWCL). Initially heralded as a solution to water shortages in the Teshie-Nungua area, the plant has proven to be an inefficient and costly venture, draining the resources of GWCL and impacting its ability to serve the broader Ghanaian population effectively. Furthermore, it serves as a glaring example of the dangers of water privatization, where profit-driven contracts take precedence over public welfare. This article looks at the inefficiencies of the plant, the financial strain it has placed on GWCL, and the extraordinary costs imposed on Ghana and recommends the termination of the contract as well as  advocates for a public, community-based approach to water management.

Background of the Teshie Desalination Plant

The Teshie Desalination Plant was commissioned in 2015 under a Build-Operate-Transfer (BOT) agreement between the government of Ghana and Befesa Desalination Development Ghana Limited, a subsidiary of Abengoa, a Spanish multinational corporation specializing in water management. The project was financed through a public-private partnership (PPP), with Ghana’s government and the private operator sharing responsibilities for investment and operation.

The agreement required GWCL to purchase water from the plant at a fixed price per cubic meter, irrespective of whether it needed the supply or not. This arrangement is characteristic of water privatization schemes, where public utilities are tied to rigid contracts that benefit private corporations at the expense of public interest.

The decision to establish a desalination plant in Ghana—despite the country’s access to ample freshwater sources such as the Weija and Kpong dams—raises critical concerns. It highlights the global trend of multinational corporations capitalizing on government contracts in water services, locking nations into long-term agreements that prioritize profits over affordability and efficiency.

Inefficiencies and Privatization-Induced Operational Challenges

1. High Energy Consumption

Desalination is one of the most energy-intensive water treatment processes. Reverse osmosis, the method used in the Teshie plant, requires vast amounts of electricity to push seawater through a semi-permeable membrane to remove salt and other impurities. The plant’s energy costs have been estimated at over $6 million annually, significantly surpassing those of conventional water treatment facilities.

Ghana’s electricity tariffs have also made the cost of running the plant unsustainable. Frequent power outages and reliance on expensive backup power sources further increase the operational costs. The high energy demand means that even when the plant is operational, the cost of producing desalinated water remains prohibitive.

2. Technical Failures and Frequent Shutdowns

The plant has faced chronic technical failures, with long periods of inactivity due to corrosion, breakdowns, and inefficient maintenance. The salty nature of seawater accelerates the deterioration of key components, leading to frequent breakdowns that require specialized repairs. Imported spare parts, costly maintenance procedures, and a lack of in-country expertise to manage desalination technology have exacerbated the plant’s inefficiencies.

Between 2015 and 2020, the plant was shut down multiple times, often for months at a time, leaving residents in the Teshie-Nungua area without a reliable water supply. These inefficiencies have highlighted the unsuitability of desalination in a country with alternative freshwater resources that require far less maintenance.

3. Unfavorable Privatization Contract: A One-Sided Agreement

The contract between Befesa and GWCL is widely regarded as one of the most financially burdensome agreements ever signed in Ghana’s water sector.

• Fixed Monthly Payments: GWCL is required to pay a fixed monthly fee of approximately $1.3 million to Befesa, regardless of whether the plant is operational or whether the water is needed.
• High Cost of Desalinated Water: The plant produces water at an estimated GH₵6 per cubic meter, compared to the GH₵1.2 per cubic meter cost of conventionally treated water from the Kpong and Weija treatment plants.
• Limited Public Oversight: The BOT agreement prioritized private sector control over operational decisions, with little room for government intervention in decision-making processes.

The contract exemplifies the problems associated with water privatization—where multinational corporations exploit public water systems to extract profits while shifting the risks to governments and taxpayers.

4. Poor Integration with Existing Water Supply Infrastructure

The Teshie plant was designed without full integration into Accra’s water distribution system. This has led to inefficiencies in transporting desalinated water to intended communities. Additionally, low demand for desalinated water from households due to its high cost and occasional poor taste has made the project less viable.

Financial Drain

The financial burden imposed by the Teshie Desalination Plant has significantly affected GWCL’s capacity to invest in essential water infrastructure. Instead of allocating resources to improve water treatment plants at Weija and Kpong—which already provide water at a lower cost—the government has been locked into an expensive, inflexible agreement that prioritizes corporate profits.

Extraordinary Costs to Ghana

• GWCL has been forced to divert significant funds to cover fixed payments to Befesa, reducing its ability to maintain existing infrastructure and expand services to underserved communities.
• The estimated $15.6 million annually spent on payments to Befesa could have been used to improve rural and peri-urban water supply systems.
• The high cost of desalinated water has disproportionately affected low-income households in the Teshie-Nungua area, making water access more expensive for those who can least afford it.

Conclusion

The Teshie Desalination Plant has become a symbol of the failures of water privatization in Ghana. The exorbitant costs, frequent operational failures, and rigid contractual obligations have made it unsustainable. Immediate steps must be taken to terminate the contract, reinvest in public water management, and prevent future privatization of essential services.

A publicly controlled, community-driven water system is the only sustainable path forward for Ghana, ensuring affordable, efficient, and equitable water access for all citizens.

Recommendations:

Given the overwhelming evidence of the plant’s inefficiency and the financial burden it imposes, the following steps should be taken:

1. The government must renegotiate or terminate the BOT agreement with Befesa to prevent further financial losses. Legal mechanisms should be explored to hold accountable those responsible for signing the contract.
2. Rather than relying on expensive private contracts, Ghana should expand and modernize its public water treatment plants, particularly at Weija and Kpong, to meet Accra’s growing demand.
3. Public water systems should be governed with strong community participation, ensuring transparency and prioritizing the needs of citizens rather than private profits.
4. The Ghanaian government should enact legislation to prevent future privatization of water services, ensuring that public utilities remain under democratic and accountable control.
5. An independent audit should assess the total financial losses incurred due to the Teshie Desalination Plant and hold responsible parties accountable.