Controversial $993m Pwalugu dam project approved

The entire project will be executed by a Chinese construction firm.

Parliament has unanimously approved the over 900 million dollar Pwalugu multi-purpose project.

The agreement which has been delayed since the last meeting over minority concerns of lack of due diligence and the cost being inflated was finally approved on Wednesday.

Deputy Energy Minister Owureku Aidoo argued the project which comprises of a hydro dam, solar plant and irrigation dam hold the answer to economic activities in the Upper East region

But the Minority spokesperson on Energy Adam Mutawakilu insisted the government must take a second look at the cost of the hydro component of the project which stands at 366 million dollars

Chairman for the Mines and Energy committee, Samuel Gyamfi, in presenting the report stated the concerns of the minority have been addressed.

Former power Minister and Pru East MP raised the issue of value for money audit. He argued that the decision to have the same company which undertook feasibility studies for projects to conduct a value for money audit flies in the face of standard industry practice. He further decried the absence of PURC approved tariffs for the hydro dam.

But the Adansi Asokwa MP and former deputy Energy Minister KT Hammond, however, insisted the cost of the project has not been inflated.

The construction of the $993 million Pwalugu Multi-purpose dam project in the Talensi District of the Upper East Region is expected to commence by end of April 2020.

The project covers an irrigation facility, which will also serve as a flood control mechanism, a 60MW of Hydropower and 50 MW of Solar power to augment electricity supply to the five regions of the North.

The entire project will be executed by a Chinese construction firm, Power China International and supervised by the Volta River Authority over a period of five years.

While the 50MW solar power electricity will be sited at Kurugu in the East Mamprusi Municipal in the North East Region, the 60MW hydropower will be sited at Nungu in the Talensi District of the Upper East Region.