Government Defends 'Big Push' Infrastructure Drive Amid Pwalugu Dam Controversy and Broad Sectoral Reforms

24th March•3 min read•70 sources

In a series of high-stakes parliamentary briefings and policy announcements, the Government of Ghana has defended its flagship 'Big Push' infrastructure program while addressing significant setbacks in major energy projects. Minister for Roads and Highways, Kwame Governs Agbodza, reported that over 2,000 kilometers of roads are currently under construction across all 16 regions, supported by a GH50 billion parliamentary approval. This initiative aims to create nearly 490,000 jobs and prioritize local contractors to build domestic technical expertise. However, the momentum is shadowed by the stalling of the Pwalugu Multipurpose Dam project. Energy Minister John Abdulai Jinapor informed Parliament that the contractor has allegedly absconded after receiving approximately $12 million in initial payments, a matter now referred to the Attorney General for further investigation and potential prosecution.

Addressing allegations of non-competitive procurement, Minister Agbodza clarified that only 44% of 'Big Push' contracts were sole-sourced, with over 400 projects awarded through open competitive bidding. He justified the use of sole sourcing for 23 critical projects, valued at GH14.8 billion, as a necessary measure to revive abandoned infrastructure and ensure timely delivery. Conversely, the Minority in Parliament and civil society groups, including the Media Foundation for West Africa, have demanded the immediate publication of all contract details, citing concerns over cost inflation and transparency. Kennedy Osei Nyarko, Ranking Member on the Roads and Transport Committee, also criticized the government's neglect of the railway sector, noting that strategic lines like Tema–Mpakadan remain non-operational despite over $1.1 billion in past investments.

In the energy and extractive sectors, the government is moving toward stricter regulation and market-driven transitions. Minister Jinapor announced that 1,200 commercial operators at Burma Camp will lose their long-standing electricity payment exemptions and transition to prepaid meters, a move aimed at ensuring fiscal sustainability. Simultaneously, the Energy Commission is mandating the registration of Electric Vehicle (EV) charging stations to manage grid impact as the nation targets the establishment of 1,000 stations by 2028. In the mining sector, the government is preparing for a transparent transition at the Damang Gold Mine, with a competitive bidding process set for April 2026. This follows the ratification of a landmark lithium mining lease with Barari DV Ghana Limited, which secures a 12% free carried interest for the state.

To strengthen fiscal discipline, the Ministry of Finance has launched a Public Financial Management (PFM) Compliance League Table and signed a Service Level Agreement to phase out manual cheques in favor of mandatory electronic payments by the end of 2026. These reforms come as the 2026 Budget faces potential external risks from Middle Eastern geopolitical tensions, which threaten to disrupt oil prices and macroeconomic stability. On the environmental and agricultural front, the government reported planting over 30 million trees in 2025 and is distributing 80,000 coconut seedlings in the Sunyani Municipality. Moving forward, the government's ability to balance rapid infrastructure expansion with transparent procurement and fiscal resilience will be critical to maintaining public trust and navigating the complex economic realities of 2026.

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Government Defends 'Big Push' Infrastructure Drive Amid Pwalugu Dam Controversy and Broad Sectoral Reforms

More from politics

Global Governance in Flux: From Military Accountability to Groundbreaking Shifts in Political Representation

Keta MP Demands Urgent Flood Relief While National Leaders Drive Infrastructure, Agricultural, and Social Reforms

President Mahama Champions National Resilience and Welfare Reforms for Senior Citizens

Ghanaian Leaders and Legal Experts Propose Sweeping Institutional Reforms to Strengthen Democracy and Public Accountability