Struggling Teshie Desalination Plant Sold

Teshie Desalination plant

Accra, February 17, 2018//-Operators of the Teshie desalination plant have sold off majority of its stake to AquaVenture Holdings.

Abengoa, operators of the plant signed an agreement with AquaVenture Holdings to transfer 56 percent share, translating into 26 million dollars.

The Teshie desalination plant was shut down this year to allow for a renegotiation of the contract with government, which is said to be costing Ghana 6 million cedis monthly.

The plant, which has reverse osmosis technology commenced operations in 2015.

It has the capacity of producing 60,000 m3/day of water, sufficient for 500,000 residents within the Greater Accra region.

Per the new contract with AquaVenture Holdings, the base price for Abengoa’s interest in BDDG, which is 26 million dollars is subject to some completion adjustments.

The closing of the transaction, which is expected to be obtained by the second quarter of 2018, will be effective once conditions precedent are met.

The conditions include renegotiation of the water purchase agreement with Ghana Water Company Limited or the receipt of required consents from BDDG’s lenders.

Other sales by Abengoa

Abengoa has recently announced the sale of 25 % of Atlantica Yield, the Norte III combined cycle in Mexico, its European bioenergy business to Trilantic Europe, as well as its subsidiary Abentel to Ericsson.

It is also planning to offload its participation in the thermosolar plant Shams-1, located in the United Arab Emirates, the Campo Palomas wind Farm in Uruguay, and its stake in Yoigo, among other divestments.

Instructively, AquaVenture is a multinational provider of Water-as-a-ServiceTM (‘WAASTM’) solutions that provide customers a reliable and cost-effective source of clean drinking and process water primarily under long-term contracts that minimize capital investment by the customer.

AquaVenture is composed of two operating platforms: Quench, a U.S.-based provider of Point-of-Use, or POU, filtered water systems and related services to approximately 40,000 institutional and commercial customers.

It also operate Seven Seas Water, a multinational provider of desalination and wastewater treatment solutions, providing approximately 8 billion gallons of potable, high purity industrial grade and ultra-pure water per year to governmental, municipal, industrial and hospitality customers.



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