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Ghana, 2018: Abengoa renegotiates Teshie-Nungua contract

Abengoa renegotiated desalination plant contract, Teshie-Nungua

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In February 2018, Water. Desalination + reuse (Faversham House) reported that Abengoa was renegotiating the contract terms for the Teshie-Nungua desalination plant with Ghana Water Company Ltd (GWCL). The 60,000 m³/day plant had been idle since 1 January 2018 after GWCL fell into arrears on its offtake contract. Befesa, by then part of Abengoa, had won the 25-year build, own and operate contract in 2011. Standard Bank, Abengoa and Sojitz financed the project, backed by a MIGA guarantee. Talks were due to end by late March 2018.

The report showed how arrears at a state offtaker could idle a completed plant and lead the operator to seek renegotiation rather than a guarantee claim.

Source: Water. Desalination + reuse (Faversham House)

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