The stalled Pwalugu Dam gets a US$1bn Budget pledge and a December 2030 finish date
Nearly seven years after its sod-cutting, the stalled White Volta dam returns with 70 MW of hydropower, 1,000 fish cages and no word yet on who will build it.
The Ghanaian government has pledged US$1 billion to revive the long-delayed Pwalugu Multi-purpose Dam project, with completion expected by December 2030. The first phase of the dam is now set to be completed by early 2029. Finance Minister Dr Cassiel Ato Forson announced the plan in the 2027 Budget Statement, positioning the dam as a key component of Ghana's ambition to achieve self-sufficiency in vegetable production.
The dam is part of the US$3 billion commercial agriculture pillar of the New Economy programme and will irrigate over 25,000 hectares of land for vegetable farming, as well as generate 70 MW of hydropower to support processing facilities, packhouses, cold stores, and irrigation infrastructure in the Pwalugu region. A reservoir capable of housing 1,000 fish cages will also be constructed.
In addition to flood protection and water security, the project is expected to create additional serviced vegetable enclaves and implement water-harvesting systems across the country. President Nana Addo Dankwa Akufo-Addo initiated the scheme in November 2019, with a budget of US$993 million and a launch date of 2024. However, the project has faced numerous challenges, including the contractor leaving Ghana and the government's reliance on the Consolidated Fund for funding.
The Ghana Irrigation Development Authority reported that around US$12 million had been spent on mobilization and site work, but no construction had commenced.
The dam's revised specifications now call for 70 MW of hydropower, up from the initially planned 60 MW, and include the addition of fish cages. The solar power component, which was not part of the original 2019 plan, is set to be part of a separate 150 MW solar plant operated by the Volta River Authority. While the government has not disclosed details on who will build the dam or the status of the PowerChina International Group contract, the wider New Economy programme is being funded through a lower primary surplus target and various tax measures.
Nonetheless, the government has not provided a financing plan for the dam, nor allocated dedicated funds for it.
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