Gov’t to cancel Pwalugu Dam contract – Minister of Agriculture
The Minister of Food and Agriculture, Eric Opoku, has announced that the government will terminate the Pwalugu Dam contract due to the contractor’s failure to complete the project as scheduled.
Speaking to the media at the end of his three-day tour of departments and agencies under the Ministry of Food and Agriculture (MoFA) in Accra on Wednesday, January 29, 2025, Mr Opoku stated that the current administration would mobilise new funding and re-award the contract to ensure the project’s completion.
Mr Opoku revealed that the contract was initially awarded for completion within four to five years at an estimated cost of $993 million. The project was expected to address three critical challenges—providing irrigation facilities for farming, generating hydropower to augment Ghana’s electricity supply, and mitigating flooding caused by the Bagri Dam spillage.
According to the minister, the government was required to pay $56 million upfront to enable the contractor to mobilise resources. However, after spending almost $12 million, no substantial work had been carried out, leaving the project in limbo.
"What we will do is to terminate that contract immediately. We'll terminate the Pwalugu contract and look for a contractor, look for funding, and then immediately ensure the execution of the project," Mr Opoku stated.
Legal considerations
Addressing concerns over potential judgment debt, Mr Opoku assured that all necessary legal steps would be taken before the contract is cancelled.
“Before we terminate, you know it will not be done here. We'll refer to the Attorney General's department for his advice before the contract is terminated. But we are prepared to make sure that the Pwalugu project is executed,” he said.
Government’s commitment to the project
As Member of Parliament for Asunafo South, Mr Opoku reassured Ghanaians that the government is committed to completing the Pwalugu Dam as a legacy project of President John Dramani Mahama.
He highlighted that the project aligns with the government’s grand vision of addressing irrigation challenges in the northern sector to boost crop cultivation.
Mr Opoku further stated that all-year-round farming is essential to achieving the government’s vision of making agriculture the driving force behind Ghana’s economic transformation, especially with the implementation of the 24-hour economy policy.
To support this initiative, he disclosed that the government would provide farmers with procured tractors and cereal harvesters to enhance agricultural productivity across the country.
Encroachment taskforce to be launched
Mr Opoku also announced plans to establish a taskforce to monitor and curb encroachment on lands belonging to state agencies under the ministry.
He noted that land encroachment has become a widespread issue, posing challenges to MoFA’s operations.
“I will launch the task force, which will have the mandate to move to all the departments, produce for our consideration documents and records on the people behind the encroachment, how they managed to acquire these lands, and who authorised them,” he stated.
Tour of agricultural agencies
The Minister’s three-day tour covered several key institutions under MoFA, where he interacted with officials and expressed his readiness to work with them towards achieving the government’s agricultural goals.
On the final day, Mr Opoku visited the Agricultural Engineering Institute, Amrahia Farms, and the Ghana Irrigation Development Authority (GIDA). The tour aimed to assess operational challenges and outline strategies for improving the agricultural sector.