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Parliament has approved the three-in-one contract agreement between Ghana (Ministry of Energy) and Powerchina International Group Limited amounting to over 895 Million Dollars for the multipurpose Dam Project at Pwalugu.
The Agreements are as follow:
EPC/Tumkey Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Energy) and Powerchina International Group Limited for an amount of Three Hundred and Sixty-Six Million, Eleven Thousand, Nine Hundred and Ninety-One United States Dollars and Thirty-Eight Cents (US$366,011,991.38) for the Engineering, Procurement and Construction (EPC) of a 50MW Hydro-Power Plant in Pwalugu EPC/Turnkey Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Energy) and Powerchina International Group Limited for an amount of Fifty-Five Million, Three Hundred and Seventy-Nine Thousand, Eight Hundred and Eight United States Dollars and Sixty-Seven Cents (US$55,379,808.67) for the Engineering, Procurement and Construction (EPC) of a SOMWac Solar Power Plant in Pwalugu EPC/Turnkey Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Food and agriculture) and Powerchina International Group Limited for an amount of Four Hundred and Seventy-Four Million, Forty-Two Thousand, One Hundred and Forty-Two United States Dollars (US$474,042,142.00) for the Engineering, Procurement and Construction (EPC) of a 24,000-Hectare Irrigation Scheme in Pwalugu. Objective of the Projects are to contribute to the socio-economic development of the country through an improved, efficient and cost-effective irrigated year-long agricultural production and hydropower generation.
The main purpose of building the Pwalugu Dam, as captured in the Finance Committee Report “is to store water for hydropower, the irrigation scheme downstream, as well as flood protection for people living in the White Volta Basin”.
According to the Report, “Hydropower plays a strategic role in ensuring that revenue from the sale of electricity goes into maintaining the dam to guarantee the longevity of the dam”.
The Ministry of Energy and Ministry of Agriculture, through the Volta River Authority (VRA), and the Ghana Irrigation Development Authority (GIDA) respectively, have completed preparatory works for the implementation of the Pwalugu Multipurpose Dam & Irrigation Project.
The project has three components, namely
A 60 MW hydropower dam;
A 50 MW solar power plant; and
A 24,000-hectare irrigation scheme.
The Pwalugu Dam is located in the Talensi District of the Upper East Region. The Dam will create a reservoir with an elevation of 165m above sea level and will cover about 265km2 area in six (6) districts in the Upper East and North East regions.
The 24,000.00-hectare Irrigation component is located in the Mamprusi West district of the North East Region. The Government of Ghana has stated its intention to encourage the implementation of grid-connected and off-grid renewable energy technologies as a way to reduce the environmental impact of power supply, promote socio-economic development and to contribute towards meeting its commitments under the Paris Agreement of the United Nations Framework Convention for Climate Change.
The Government, through its flagship programme of Planting for Food and jobs, intends to make Ghana self-sufficient in food production. The Pwalugu irrigation scheme will support this initiative by transforming food production in one of Ghana’s most fertile regions.
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