Government to invest $1bn in Pwalugu multipurpose dam, first phase expected by 2029

Government is planning to invest US$1 billion in the full completion of the Pwalugu Multipurpose Dam, as part of efforts to boost agricultural production, expand agro-processing and strengthen energy supply.

Presenting the 2027 Budget Statement in Parliament, Finance Minister, Dr Ato Forson said the project will support large-scale vegetable production, aquaculture, irrigation and hydropower generation.

He said the dam will provide water for about 25,000 hectares of land dedicated to vegetable production, while its reservoir will accommodate 100,000 fish cages to support aquaculture.

According to Dr Forson, the project is expected to promote year-round agricultural production, improve water security and provide flood protection across the White Volta corridor.

The dam will also generate 77 megawatts of hydropower to support agro-industrial activities within and around the Pwalugu enclave.

“Pwalugu will support year-round vegetable production, flood protection, water security, agriculture and agribusiness across the dry water corridor,” he told Parliament.

He explained that the electricity generated will support processing factories, irrigation systems, pack houses and cold storage facilities, helping farmers and businesses add value to agricultural produce closer to production centres.

The Finance Minister said the project will be implemented in phases, with the first phase expected to be ready by early 2029 and full completion scheduled for December 2030.

“The first phase of the Pwalugu Multipurpose Dam will be ready by early 2029, with full completion by December 2030,” Dr Forson stated.

He added that the dam will be complemented by service vegetable enclaves in other regions, water harvesting systems and protected cultivation to expand agricultural production.

The investment forms part of government’s broader New Economy Programme, which seeks to transform commercial agriculture, strengthen local industries and create employment opportunities.