American Water Company acquires 56% stake in Teshie Desalination Plant                 

American water services company, "AquaVenture Holdings", has acquired a majority stake in the Teshie Desalination Plant.  

Abengoa, operators of the plant signed an agreement with AquaVenture Holdings to transfer 56 percent of its shares in the plant, worth about 26 million dollars.  

The Teshie Desalination Plant was shut down in 2017 for a renegotiation of the contract with government, which is believed 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 thousand metric cubes day of water, sufficient for 500 thousand residents within the Greater Accra region.  

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

The transaction, which is expected to be finalised by the second quarter of this year will be effective once some conditions are met. 

The conditions include the renegotiation of the water purchase agreement with Ghana Water Company Limited (GWCL). 

SOURCE: CITI
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