Pwalugu dam project: $11.9 million not for final work done but mobilization — GIDA

The Ghana Irrigation Development Authority (GIDA) has clarified that a $11.9 million payment to the contractor of the Pwalugu Multipurpose Dam and Irrigation Project was for mobilization activities and not final works done on the project.

In a press statement released dated May 28, GIDA sought to "set the records straight" on discussions around the payment that has received public attention due to the stalled progress.

The project oversees the development of an irrigation infrastructure and hydroelectric dam in northeast Ghana.

According to GIDA, the $11.9 million payment was part of the agreed 12% advance mobilization payment as stipulated in the contract with the Chinese contractor, Power Construction Corporation of China (POWERCHINA).

"The payment of USD 11.9 million was for mobilisation as per the contract terms and not for final payment of works done,” part of the statement reads.

They emphasized that the payment was covered by an advance payment guarantee of over $60 million from the contractor's bank to secure government's funds.

GIDA further noted that contrary to claims, the contractor has undertaken both preparatory work and initial construction activities since mobilizing to site.

This includes engineering designs, site establishment works and access road construction.

The statement aims to dismiss any notion that "no work has been done" despite the funds being disbursed.

Meanwhile, the Minority caucus in parliament led by its Ranking Member on Energy John Jinapor, is calling for persons involved in what they call misuse of funds to be prosecuted.