Pwalugu Dam: $12m payment was for mobilisation, not final work – GIDA

The Ghana Irrigation Development Authority (GIDA) has defended a $12 million payment to the contractor for the Pwalugu Multipurpose Irrigation Dam project.

GIDA's May 28 statement clarified that the payment to POWERCHINA was part of the contract terms, requiring an $11.9 million mobilization fee upon provision of an advance payment guarantee from a reputable bank.

GIDA emphasized that the government was not at risk and that both preconstruction documents and some physical work had been delivered.

This follows concerns from Minority MPs, who claimed no work was done and materials were sold.

GIDA also maintained that the payment was covered by a $60.7 million bank guarantee.

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