The government has announced its decision to terminate the contract awarded for the construction of the Pwalugu Dam, citing the need for a new approach to ensure the project’s execution.
The Minister for Food and Agriculture, Eric Opoku, disclosed this during an interaction with journalists after a three-day tour of various departments and agencies under his ministry.
“What we will do is to terminate that contract immediately. We’ll terminate the Pwalugu contract, look for a contractor, look for funding, and then immediately ensure execution of the contract,” he stated.
When asked about potential judgment debt implications, the minister assured that due diligence would be followed.
“Before we terminate, we’ll refer it to the Attorney General’s department for advice. But we are prepared to make sure that the Pwalugu project is executed. And I can assure you that it is going to be John Mahama’s signature project in the North,” he added.
The Pwalugu multipurpose dam project was initiated by the previous government in 2019 under a $993 million contract. It was designed as a hydro-solar hybrid system featuring 60 MW of hydropower and 50 MW of solar power.
The project was also expected to help absorb spilled water from the Bagre Dam to mitigate perennial flooding in northern Ghana and boost irrigation.
Despite an initial 2024 completion timeline, the Ghana Irrigation Development Authority (GIDA) recently revealed that while $12 million has been spent on mobilisation and site development, actual construction has not yet begun.
