Stalled Pwalugu Dam contractor has run out of Ghana with funds – Energy Minister

The Minister for Energy and Green Transition, John Jinapor, has disclosed that the Pwalugu Multipurpose Dam project has come to a halt after the contractor allegedly took funds and left the country without completing the work.

Appearing before Parliament’s Assurances Committee on Tuesday, March 24, the Minister said the government is taking steps to revive the project despite the setback.

“We are considering the Pwalugu Dam; unfortunately, the contractor took the money and bolted, let me put it that way, and left Ghana,” he stated.

Mr Jinapor indicated that the government is currently engaging the Ministry of Finance Ghana to secure fresh funding to continue the project. He, however, noted that Ghana’s ongoing programme with the International Monetary Fund has limited the country’s ability to access external financing, unless such support comes in the form of grants.

The development raises fresh concerns about the future of the Pwalugu Dam, a flagship initiative expected to boost agriculture and energy supply in northern Ghana.

Launched in 2019 under a $993 million Sinohydro agreement, the project was designed as a hydro solar hybrid system with the capacity to generate 60 megawatts of hydropower and 50 megawatts of solar energy. It was also intended to support all-year-round irrigation and help control flooding linked to spillage from the Bagre Dam.

Although the project was initially scheduled for completion in 2024, it remains stalled in 2026. The Ghana Irrigation Development Authority has previously indicated that about $12 million has been spent on mobilisation and site preparation, but full scale construction has yet to begin.