Pwalugu Dam: ‘Why spend $12m on a project without securing full funding?’ — Franklin Cudjoe questions GIDA

Headlines Franklin Cudjoe, Founding President of IMANI Africa
Franklin Cudjoe, Founding President of IMANI Africa

Founding President of IMANI Africa Franklin Cudjoe has questioned GIDA’s clarification that the $12 million payment was just for mobilization and not final work completed.

In a Facebook post on Thursday, May 30, the policy advisor asked why the state would make such a payment for just mobilization if it does not have additional funds secured to complete the project.

"The Pwalugu Dam tales - $12m was paid as a mobilisation fund according to GIDA. How can you disburse $12m so quickly for a project without having secured 30% of the total funding needed?" he wrote.

The Ghana Irrigation Development Authority (GIDA) had clarified in a press statement dated May 28 that the $11.9 million payment made to the contractor for the Pwalugu Multipurpose Dam and Irrigation Project was for mobilization activities and not final works completed on the project.

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 the government's funds.

GIDA further noted that contrary to claims, since mobilizing to the site the contractor has undertaken both preparatory work and initial construction activities including engineering designs, site establishment works and access road construction.

Isaac Donkor Distinguished
Isaac Donkor Distinguished

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