Government set to cancel $993m Pwalugu Dam contract - Eric Opoku

Pwalugu, Ghana - 29 Jan, 2025 - The Ghanaian government has revealed plans to cancel the contract for the Pwalugu Dam's construction, initially valued at $993 million.

Awarded in 2019, the contract aimed to establish a pioneering hydro-solar hybrid system, combining 60 MW of hydropower and 50 MW of solar power. However, despite an initial completion timeline of 2024, the project has stalled, with only $12 million spent on preliminary work.

The decision, announced by Minister for Food and Agriculture Eric Opoku to journalists, comes amid concerns over delays and the project's slow progress.

Minister Opoku attributed the contract's termination to the need for a fresh approach, ensuring the project's successful execution. The government will now seek new contractors and funding, with the Minister assuring that due diligence will be followed to avoid potential judgment debts.

“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.

“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.

Source: Lead News Online