Pwalugu Dam stalls as contractor ‘bolts’ with funds – Energy Minister

Pwalugu Multipurpose Dam Project Stalled as Contractor Abandons Work, Government Seeks Revival

The ambitious Pwalugu Multipurpose Dam project, intended to be a transformative hydro-solar infrastructure in northern Ghana, has reportedly stalled after the contractor allegedly absconded with allocated funds and left the country. The revelation was made by the Minister for Energy and Green Transition, John Jinapor, during his appearance before Parliament’s Assurances Committee on Tuesday, March 24, 2026.

According to Minister Jinapor, the contractor responsible for the $993 million project, initially awarded to Sinohydro in 2019, took government funds and ceased operations without completing any substantive construction. “We are considering the Pwalugu Dam; unfortunately, the contractor took the money and bolted, let me put it that way, and left Ghana,” he stated.

Government Plans to Revive the Project

Despite the setback, the Minister assured lawmakers that the government is actively exploring options to restart the project. Efforts are currently focused on securing new funding through engagements with the Ministry of Finance. However, he noted that Ghana’s ongoing programme with the International Monetary Fund (IMF) has complicated efforts to raise external financing, particularly in the form of loans. According to Mr. Jinapor, unless additional funding comes as grants, mobilizing resources for the project remains a challenge.

The Minister’s disclosure has reignited concerns about the Pwalugu Dam’s fate, which is widely regarded as a flagship initiative for energy generation and agricultural development in the northern regions of Ghana.

Project Overview and Strategic Importance

The Pwalugu Multipurpose Dam was conceptualized as a hydro-solar hybrid facility designed to provide 60 megawatts (MW) of hydropower alongside 50 MW of solar energy. Beyond electricity generation, the dam was expected to facilitate year-round irrigation, boosting agricultural productivity, and to mitigate flooding caused by spillage from the Bagre Dam in Burkina Faso.

Initially, construction was scheduled for completion by 2024. However, as of 2026, actual construction work has yet to commence. The Ghana Irrigation Development Authority indicated that while approximately $12 million was expended on mobilization and site preparation, no significant building has occurred on the site.

The project is considered a critical component of Ghana’s energy diversification strategy and its push toward sustainable agriculture, especially in the northern corridor. Its delay raises concerns over energy supply targets, food security, and regional economic development.

Challenges and Next Steps

Minister Jinapor highlighted that reviving the Pwalugu Dam requires careful financial planning and adherence to regulatory and contractual frameworks to prevent similar setbacks. He also hinted at the possibility of exploring new contractors, stricter oversight mechanisms, and innovative financing approaches to ensure completion.

“The government remains committed to the completion of the Pwalugu Dam. We are exploring all viable options to get the project back on track, but it must be done with prudence to protect public resources,” he added.

Observers have noted that the stalled project underscores broader challenges in Ghana’s infrastructure development, including contractor vetting, project monitoring, and the management of large-scale public investments. The government is expected to provide updates on the project’s revival plan in the coming months, as stakeholders await clarity on timelines and funding sources.