By
Benjamin Mensah, GNA
Accra, Feb 27, GNA –
Parliament has endorsed a contract agreement covering over US$ 993 million
between the Government of Ghana and Powerchina International Group Limited for
the construction of a multipurpose dam project at Pwalugu, in the Upper East
Region.
The Ministry of
Energy is representing the Government of Ghana in the EPC/Tumkey Contract for
an amount of US$366.911 million for the engineering, procurement and
construction (EPC) of a 50MW Hydro-Power Plant;
another EPC of a SOMWac Solar Power Plant in Pwalugu; and 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 US$474.042
million for EPC of a 24,000-hectare Irrigation Scheme.
The triad project
would contribute to the socio-economic development of the country through an
improved, efficient and cost-effective irrigated year-long agricultural
production and hydropower generation.
According to a
Finance Committee Report of Parliament, the main purpose of building the
Pwalugu Dam “is to store water for hydropower, the irrigation scheme
downstream, and flood protection for people living in the White Volta Basin.”
Hydropower plays a
strategic role in ensuring that revenue from the sale of electricity went 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 Government of
Ghana has promised 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.
Through the lagship
programme of Planting for Food and jobs, Government intends to make Ghana
self-sufficient in food production, and the Pwalugu irrigation scheme is meant
to support that initiative by transforming food production in one of Ghana’s
most fertile regions.
The agreement has
been delayed since the last meeting of Parliament as the Minority National
Democratic Congress ( NDC) Caucus raised issues with Government citing inflated
cost of project, and lack of due diligence.
Mr Samuel Gyamfi,
Chairman of the Mines and Energy Committee, in presenting the report stated the
concerns of the minority were addressed.
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 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.
GNA