Minority raises red flags over ‘padded cost’ of US$366 60MW facility

The Minority in Parliament is questioning the cost of a 60MW facility at ‘a whopping US$366 million.’

The facility forms part of the construction of the Pwalugu Multi-purpose dam project.

The facility, together with an irrigation component of the dam is estimated to cost the Ghanaian taxpayer close to a billion dollars.

According to the minority, the outrageous cost of the project has been padded by the Akufo-Addo-led NPP government.

Haruna Iddrisu, who addressed a Minority news briefing at Parliament on Wednesday argued the Pwalugu Dam at 60MW facility at a cost of a US$366 million is unacceptable and extremely exorbitant.

“What this means is that the unite cost of the Pwalugu Dam is a whopping 6 million dollars per Megawatt,” he said.

He argued that the breakdown of related hydro projects across Africa puts the average cost at one million dollars and warned the minority will not participate in approving this agreement.



Mr. Haruna Iddrisu named a number of dams and the total cost of their construction to buttress the Minority’s point on the cost.

According to him, the 6,000MW Ethiopia Renaissance Dam was constructed at 6.4 billion dollars at a unit cost of one million dollars.

The Uganda Isimba Dam, which is 183MW, was constructed at 568 million dollars at a unit cost of 962 thousand dollars.

The Zambia Kafue Dam, 660MW was US$600 million putting the cost per unit at one million dollars.

The 1,870 MW Gilgel Gibe III Dam, also in Ethiopia was constructed at US$790 million dollars at a unit cost of US$1 million.

The Minority leader brought the comparison home and noted that the 400MW Bui Dam was constructed at a total cost of US$790 million thereby putting the unit cost at US$1.9 million.

“It is therefore absolutely outrageous that the NPP government under the leadership of President Nana Addo Dankwa Akufo Addo will seek to construct 60MW for US$366 million,” he stated.

Mr. Haruna Iddrisu observed that the haste by which the agreement was approved at the Finance Committee level when it was laid at 9:30 pm and referred to it on the 23rd December 2019 is evidence enough of the obvious attempt to rip off the state.

He stressed that the Minority is not against the construction of the irrigation dam but stressed the people of Ghana should have value for every pesewa of their monies that are spent in their name.

Source: ghanacrusader.com