The Minister for Food and Agriculture, Eric Opoku, has announced the government’s decision to terminate the contract for the construction of the Pwalugu Multipurpose Dam.
Speaking to journalists after a three-day tour of various departments and agencies under the ministry, the minister indicated that the contract, awarded in 2019, would be annulled to pave the way for a new contractor and funding arrangements to ensure the project’s completion.
The $993 million Pwalugu Dam project, located in the Talensi District of the Upper East Region, was designed as a hydro-solar hybrid system with a planned capacity of 60 megawatts of hydropower and 50 megawatts of solar power. A key objective of the project was to absorb excess water from the Bagre Dam to mitigate recurring floods in northern Ghana while also boosting irrigation for agricultural development.
Despite an initial completion timeline set for 2024, the Ghana Irrigation Development Authority (GIDA) has disclosed that only $12 million has been spent on mobilization and site development, with no actual construction work undertaken.
Addressing concerns over the project’s delay, Minister Eric Opoku stressed the government’s commitment to its execution.
“We will terminate the Pwalugu contract, secure a new contractor, arrange for funding, and ensure the project’s immediate execution,” he stated.
Potential Judgment Debt
When asked about the possibility of a judgment debt arising from the contract termination, the minister assured that the necessary legal due diligence would be conducted.
“Before we proceed with termination, the matter will be referred to the Attorney General’s Department for legal advice. However, we remain determined to see the Pwalugu project executed,” he affirmed.
He further emphasized that the completion of the Pwalugu Dam would be a landmark initiative under the leadership of former President John Mahama, highlighting its significance for the northern sector.
