Socioeconomic Impact of Development Projects on the Livelihood of Farmers: A Case Study of the Bui Dam Hydroelectric Project

The development of major social projects such as hydroelectric dams, roads and mining often result in the loss of properties and sometimes relocation of the affected people or communities. This paper examined the impact of the Bui Dam Hydroelectric project on the livelihood of the people affected, especially farmers in the Bono Region of Ghana. The paper also reviewed the Environmental and Social Impact Assessment (ESIA) report of the project in line with the Environmental Protection Agency requirement, examined the compensation and the living conditions of the farmers in the affected communities. Interviews and focus group discussions of farmers in four communities were conducted which was later followed by the administration of questionnaires to seventy-five (75) farmers. The data obtained from the questionnaires were analyzed using descriptive statistics such as frequencies, percentages and Excel software for the development of charts. The review of the ESIA report of the Bui dam showed that an extensive ESIA was conducted with only few lapses outlined in the text. The interviews and the questionnaires revealed that the farmers who were relocated have problems with land acquisition, soil fertility and irrigation facilities when they were moved to their new location. There were also concerns about inadequate payment of compensations and unfulfilled promises. However, about 97.3% of the respondents were comfortable at their new location because of the proximity to health services, access to good roads, nice buildings and provision of some basic social amenities such as light and water, as well as possible business and employment opportunities. The paper makes suggestions for improving compensations and resettlement schemes in Ghana.