The Minister for Food and Agriculture, Eric Opoku has announced the government’s intention to terminate the contract awarded for construction of the Pwalugu Dam.
The Minister gave the indication during an interview with journalists after a three-day tour of various departments and agencies under the ministry.
Government in 2019, initiated a $993 million contract to build the Pwalugu multipurpose dam in the Talensi District of the Upper East Region.
The project was expected to feature a hydro-solar hybrid system with 60 MW of hydropower and 50 MW of solar power, but most importantly, absorb spilled water from Gagre to address the perennial flooding up north, and boost irrigation.
After the expiration of the proposed 2024 scheduled completion, the Ghana Irrigation Development Authority – GIDA revealed that a total of $12 million dollars has been spent on mobilisation and project site development, with construction yet to begin.
Speaking on what government intends to do with the project, the Agric Minister, Eric Opoku says “what we will do is to terminate that contract immediately. We’ll terminate the Pwalugu contract, look for a contractor, look for funding, and then immediately ensure execution of the contract.
POTENTIAL JUDGMENT DEBT
When cautioned against a potential judgment debt arising from cancelling this contract, the Minister assures that there will be due diligence in the cancellation process.
“Anyway, before we terminate, we’ll refer it to the Attorney General’s department for his advice. But we are prepared to make sure that the Pwalugu project is executed. And I can assure you that it is going to be John Mahama’s signature project in the North” he assured.
Source: James Avedzi
