The project is expected to be a game-changer for the local economy and an essential part of Ghana's development strategy.
A recent development in the project is the allocation of $12 million by the Bank of Ghana to the contractor responsible for its construction, which marks a critical step in the project's progress.
The Pwalugu Dam project, valued at approximately $993 million, is a key part of Ghana's efforts to enhance its energy security, boost agricultural productivity, and mitigate flooding.
The project includes a hydroelectric power plant with a capacity of 60 megawatts, a 25,000-hectare irrigation scheme, and a comprehensive flood control system designed to manage the recurrent flooding issues in the region.
This payment is part of the broader funding strategy to ensure the timely and efficient progress of the project.
However, questions have arisen about the disbursement of funds, especially since little to no work has been done on the project sites.
The Director of Communications at the Central Bank, Bernard Otabil, explained that the Central Bank only makes payments sanctioned by the government.
Almost five years after President Nana Addo Dankwa Akufo-Addo cut the sod for the construction of the Pwalugu multipurpose dam project, work on the much-touted project, which began in November 2019, is yet to progress.
The $993 million project, financed solely by the government, has been on the drawing board since the early 1960s, and the sod-cutting ceremony was thus considered historic.
Pwalugu multipurpose dam dear to my heart – Bawumia in 2024
Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP) revealed that the Pwalugu Dam is dear to his heart, indicating that he is committed to getting it done.
During his visit to the Upper East Region as part of his interaction with religious leaders and other stakeholders, he reiterated the significance of the project as it fits into his agenda of prioritizing agriculture under his administration.
"I have no doubt that I am championing the Pwalugu multipurpose dam, and by the grace of God, we will do it," he disclosed.
The project, which feeds into his agenda for agriculture, is a major priority.