Mahama Administration Commits $1bn to Complete NPP’s Failed Pwalugu Dam by 2030

The Mahama administration has committed US$1 billion to execute and fully complete the long-stalled Pwalugu Multipurpose Dam project by December 2030, reviving an initiative originally launched under the previous New Patriotic Party (NPP) government that saw no physical construction despite millions of dollars in preliminary expenditure.

Presenting the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12, Minister of Finance Dr. Cassiel Ato Forson announced that the US$1 billion allocation forms a central pillar of the government’s US$3 billion investment in commercial agriculture under the four-year “New Economy” Programme.

According to Dr. Ato Forson, the project will be rolled out in phases, with the first phase scheduled for completion by early 2029 and full delivery targeted for December 2030.

Once completed, the multipurpose facility is projected to generate 70 megawatts of hydropower, irrigate approximately 25,000 hectares of farmland for year-round vegetable cultivation, and accommodate 1,000 fish cages within its reservoir to boost domestic aquaculture. The Minister noted that the dam will also provide flood protection and water security across the dry northern corridor while powering nearby agro-processing factories, pack houses, and cold storage facilities.

The renewed commitment seeks to resolve years of frustration over the project. Originally awarded by the Akufo-Addo administration in 2019 at an estimated cost of US$993 million, the Pwalugu Dam stalled indefinitely following its sod-cutting ceremony, becoming a subject of intense public scrutiny after reports revealed that roughly US$12 million had been spent on preliminary works without actual construction taking off.

By: Franklin ASARE-DONKOH