Pwalugu Dam: Govt makes billion-dollar bet on agriculture

The government has announced plans to invest US$1 billion in the completion of the Pwalugu Multipurpose Dam to support year-round agricultural production, fisheries, electricity generation and agro-industrial development.

Finance Minister Dr Cassiel Ato Baah Forson said the project would irrigate 25,000 hectares of land for vegetable production and provide infrastructure to strengthen agribusiness activities along the White Volta corridor.

Presenting the 2028 Government Budget and Economic Plan to Parliament, he said the reservoir would also accommodate 100,000 fish cages to expand aquaculture production and improve Ghana’s fish supply.

The project is expected to generate 70 megawatts of hydropower to support agro-industrial activities within and around the Pwalugu enclave.

According to the Minister, the electricity generated would serve processing factories, irrigation systems, packhouses and cold-storage facilities, connecting agricultural production directly to processing and value addition.

He said the project would also provide flood protection and improve water security for agricultural communities.

Project timeline

The government expects the first phase of the multipurpose dam to be ready by early 2029, with full completion scheduled for December 2030.

Dr Forson said the US$1 billion investment would finance the full completion of the project.

The Palugu development will also be complemented by serviced vegetable production enclaves in other regions, water-harvesting systems and protected cultivation facilities.

The government believes the intervention will support year-round vegetable production, strengthen the agricultural value chain and create opportunities for businesses involved in processing, storage, transportation and distribution.

The proposed investment forms part of the government’s broader commercial agriculture programme, which seeks to increase domestic food production, reduce imports and improve the competitiveness of Ghanaian agribusinesses.

The Minister said the integration of irrigation, electricity generation, fish production and agro-processing would help create an industrial base around agricultural production.