The Minister for Food and Agriculture, Eric Opoku, has announced the government’s intention to terminate the contract awarded for the construction of the Pwalugu Dam.
The Minister made the statement during an interview with journalists after a three-day tour of various departments and agencies under the ministry.
In 2019, the government initiated a $993 million contract to build the Pwalugu multipurpose dam in the Talensi District of the Upper East Region.
The project was expected to feature a hydro-solar hybrid system with 60 MW of hydropower and 50 MW of solar power. Most importantly, it was designed to absorb spilled water from the Gagre to address the perennial flooding in the north and boost irrigation.
However, following the expiration of the proposed 2024 completion date, the Ghana Irrigation Development Authority (GIDA) revealed that a total of $12 million had been spent on mobilisation and project site development, with construction yet to begin.
Speaking on what the government intends to do with the project, Agric Minister Eric Opoku said, “What we will do is to terminate that contract immediately. We’ll terminate the Pwalugu contract, look for a contractor, seek funding, and then immediately ensure execution of the contract.”
Potential Judgment Debt
When cautioned about the potential judgment debt arising from canceling this contract, the Minister assured that due diligence would be followed in the cancellation process.
“Anyway, before we terminate, we’ll refer it to the Attorney General’s department for his advice. But we are prepared to ensure 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 assured.