Government plans to invest US$1 billion in the completion of the Pwalugu Multipurpose Dam, with the project expected to support large-scale agriculture, aquaculture, agro-processing and electricity generation.
Finance Minister Dr Cassiel Ato Forson announced the investment while presenting the 2027 Budget Statement to Parliament, describing the project as part of the government’s wider push to expand commercial agriculture and strengthen local production.
25,000 hectares for vegetable production
Dr Forson said the dam will provide water for about 25,000 hectares of land earmarked for vegetable production, creating room for farming throughout the year.
Its reservoir is also expected to accommodate about 100,000 fish cages, opening another commercial opportunity through aquaculture.
“Pwalugu will support year-round vegetable production, flood protection, water security, agriculture and agribusiness across the White Volta corridor,” he told lawmakers.
The project is also expected to improve water security and reduce the impact of flooding in communities along the corridor.
Hydropower to support agro-processing
Beyond agriculture, the Pwalugu Multipurpose Dam will generate 77 megawatts of hydropower.
Dr Forson said the electricity will support irrigation systems, processing factories, pack houses and cold storage facilities around the Pwalugu enclave, allowing agricultural products to be processed closer to where they are produced.
Government expects this to reduce post-harvest losses while creating opportunities for farmers and agribusinesses to add more value locally.
The project will be delivered in phases.
“The first phase of the Pwalugu Multipurpose Dam will be ready by early 2029, with full completion by December 2030,” Dr Forson said.
He added that the project will be complemented by vegetable production enclaves in other regions, water harvesting systems and protected cultivation.
The investment forms part of government’s New Economy Programme, which targets commercial agriculture, industrial development and job creation.
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