The Ministry of Food and Agriculture has announced plans to terminate the existing contract for the Pwalugu Multipurpose Dam and re-award it to a new contractor.
According to the Minister for Food and Agriculture, Eric Opoku, the Attorney-General has been instructed to begin the termination process as part of the government’s renewed commitment to address the devastation caused annually by the spillage of Burkina Faso’s Bagre Dam.
“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,” Mr. Opoku said in Accra.
For communities in the North East and Upper East regions, the announcement brings a glimmer of hope. Each year, torrential rains in Burkina Faso force the spillage of the Bagre Dam, resulting in floods downstream in Ghana. Entire communities are submerged, livestock washed away, and farmlands destroyed, leaving families to rebuild their lives year after year.
“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,” the Minister added.
A long history of unfulfilled promises
The Pwalugu Multipurpose Dam is not a new idea.
In fact, it is one of Ghana’s longest delayed infrastructure projects, first conceived over 60 years ago.
The Nkrumah years
As far back as the early 1960s, Ghana’s first President, Dr. Kwame Nkrumah, sought to harness the White Volta basin for irrigation and power generation. Feasibility studies identified Pwalugu in the Talensi District as the most strategic site. But his overthrow in 1966 halted the project.
Rawlings and the VRA studies
In the late 1980s and early 1990s, under Flt. Lt. Jerry John Rawlings, the Volta River Authority (VRA) revisited the dam with support from development partners. However, economic turbulence and fiscal constraints meant the project was shelved.
Kufuor’s push and funding setbacks
President John Agyekum Kufuor revived interest in the early 2000s as part of his Northern Development agenda. Despite updated feasibility work and parliamentary discussions, funding challenges stalled the project.
Mills, Mahama and the Northern Development promise
Under Presidents John Evans Atta Mills and John Dramani Mahama, the project was tied to the Savannah Accelerated Development Authority (SADA). Once again, feasibility studies were updated, but construction never began.
Akufo-Addo’s sod cutting in 2019
The most tangible step came in November 2019, when President Nana Addo Dankwa Akufo-Addo cut the sod for the $993 million project, awarded to Power China International. It was described as “the single biggest investment in Northern Ghana since independence.”
The dam was expected to generate 60MW of hydroelectric power, irrigate 25,000 hectares of farmland, and control flooding from the Bagre Dam. Yet, five years later, no significant construction has taken place, with issues over financing, procurement, and contract clarity stalling progress.
Why the Dam matters
Flood control and humanitarian relief
Every August and September, Bagre Dam spillage displaces thousands. In 2020 alone, over 100,000 people were displaced, dozens of lives were lost, livestock were destroyed, and more than 20,000 hectares of farmland were submerged.
The Pwalugu Dam would act as a buffer reservoir, absorbing excess water and drastically reducing humanitarian and economic losses.
Irrigation for 25,000 hectares
With irrigation potential covering 25,000 hectares, the dam would allow year-round farming in northern Ghana. Staple crops like rice, maize, tomatoes, onions, and vegetables could be cultivated on a commercial scale, transforming the region into a food basket and reducing reliance on imports.
Power generation (60MW + Solar)
Though modest compared to Akosombo or Bui, the Pwalugu Dam’s 60MW hydroelectric output would boost Ghana’s renewable energy mix and support rural electrification and agro-industrialisation under the One District, One Factory initiative.
Job creation and poverty reduction
Thousands of jobs—direct and indirect—would be created during construction and operation. In a region that records some of Ghana’s highest poverty levels, the economic ripple effect could be transformative.
Regional cooperation
The dam also carries diplomatic weight. By building Pwalugu, Ghana would strengthen water management cooperation with Burkina Faso, mitigating the perennial risks posed by the Bagre Dam.
