Ghana: Gov’t To Invest US$1 Billion In Completion Of Pwalugu Multipurpose Dam

The Government of Ghana is planning to invest US$1 billion to ensure the full completion of the Pwalugu Multipurpose Dam as part of efforts to boost agricultural production, expand agro-processing and strengthen the country’s energy supply.

The previous government broke ground for the project on November 29, 2019.

However, the project faced setbacks after the contractor allegedly received funds and left the country, raising concerns about its future. Despite these challenges, the Pwalugu Multipurpose Dam remains a significant initiative aimed at boosting agricultural production and strengthening energy supply in northern Ghana.

Initially estimated to cost US$993 million, the project was designed to address flooding caused by the spillage of the Bagre Dam in Burkina Faso.

It included a 60-megawatt hydropower plant, a 50-megawatt solar farm and an irrigation scheme covering 25,000 hectares.

Presenting the 2027 Budget Statement in Parliament on Thursday, Finance Minister Dr. Ato Forson said the project’s cost had increased to US$1 billion due to modifications to its original design.

He said the dam would generate 77 megawatts of hydropower to support agro-industrial activities within and around the Pwalugu enclave.

The dam is also expected to provide water for approximately 25,000 hectares of land dedicated to vegetable production, while its reservoir will accommodate up to 100,000 fish cages to support aquaculture.

According to Dr Forson, the project is expected to promote year-round agricultural production, improve water security and provide flood protection across the White Volta corridor.

“Pwalugu will support year-round vegetable production, flood protection, water security, agriculture and agribusiness across the dry water corridor,” he told Parliament.

He explained that the electricity generated would support processing factories, irrigation systems, pack houses and cold storage facilities, enabling farmers and businesses to add value to agricultural produce closer to production centres.

The Finance Minister said the project would be implemented in phases, with the first phase expected to be ready by early 2029 and full completion scheduled for December 2030.

“The first phase of the Pwalugu Multipurpose Dam will be ready by early 2029, with full completion by December 2030,” Dr Forson stated.