The Mahama administration has announced plans to cancel the stalled Pwalugu multipurpose dam contract and re-award it in a fresh procurement process, after years of delays and mounting pressure over flooding in northern Ghana.

Food and Agriculture Minister Eric Opoku said the decision is part of efforts to address flooding in northern Ghana.

“What we are doing is that we have asked the Attorney General to initiate the processes for the termination of the contract, re-award the contract and the president is committed to ensuring that the Pwalugu dam is constructed,” Opoku said.

“When that is done, it will block the effect of the spillage on our people. In the meantime we have cautioned our people on the spillage and we are educating them on how to manage the effects as we prepare to go into that construction,” he added.

The Pwalugu dam, announced in 2019, is planned as a multipurpose project on the White Volta River in the Upper East Region. It is expected to produce 60 megawatts of hydroelectric power, provide irrigation for almost 25,000 hectares of farmland and help reduce flooding downstream, often caused by controlled spillage from the Bagre Dam in Burkina Faso.

The project, estimated at over $1 billion, has faced delays due to financing difficulties and procurement concerns. Communities and civil society organisations have called for clarity on timelines, warning that annual flooding continues to affect livelihoods.

Ghana has faced challenges in funding major infrastructure projects as the country implements a $3 billion programme with the International Monetary Fund (IMF) aimed at restoring economic stability.

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