The project was a collaboration between the government of Ghana and Sino Hydro, a Chinese state-owned construction company.

The reservoir flooded about 20% of the Bui National Park and impacted the habitats for the rare black hippopotamus as well as a large number of wildlife species.

"[11] Although Bennett always maintained a neutral stance towards the construction of the dam, in April 2001 the government of Ghana banned him from doing further research on the ecology of the Bui National Park.

[12] In 1999 the Volta River Authority, the country's power utility, signed an agreement with the US firms Halliburton and Brown and Root to build the dam without issuing a competitive bid.

[7] In December 2000 President Jerry Rawlings, who had ruled the country for the two previous decades, did not contest in elections (as per the constitution) and his party lost to the opposition led by John Kufuor.

According to Charles Wereko-Brobby, then President of the Volta River Authority, Bui Dam was not considered the least–cost option and could not meet "immediate" energy needs.

Instead gas-powered thermal power plants were to be built, producing electricity at what was said to be half the cost of Bui.

Furthermore, a severe drought in 1998 exacerbated the energy crisis due to low water levels in Akosombo Dam.

The government accepted the bid and the Ministry of Energy signed contracts for an environmental impact assessment in December 2005, as well as for an updated feasibility study in October 2007.

The government created the Bui Power Authority in August 2007 to oversee the construction and operation of the project and the associated resettlement.

The power station will have an installed capacity of 400 megawatts and an estimated average annual generation of 980 gigawatt-hours (3,500 TJ).

An additional expected benefit is the irrigation of high-yield crops on 30,000 hectares of fertile land in an "Economic Free Zone".

The proceeds of 30,000 tons per year of Ghanaian cocoa exports to China, which are placed in an escrow account at the Exim Bank, serve as collateral for the loan.

Once completed, an independent panel appointed by the Environmental Protection Agency (EPA) of Ghana reviewed the ESIA.

The latter was revised in the important aspects, including the following: "compensation" had to be provided for the inundated area of Bui National Park, a "rescue plan" for the hippos was required and it had to be specified how resettlement would be carried out.

Even if there were such a "safe haven", it is not clear if the country's game and wildlife department has the means to rescue the animals.

[21] The Environmental and Social Impact Assessment states that hippos will be vulnerable to hunting during the filling period of the reservoir.

[3] The dam could also have other serious environmental impacts, such as changing the flow regime of the river which could harm downstream habitats.

A survey by the University of Aberdeen has revealed that the Black Volta River abounds with 46 species of fish from 17 families.

[22] In order not to slow down the construction of the dam, the Bui Power Authority has opted for a quick resettlement process.

Instead, the first 217 relocated people have been moved to a temporary settlement called Gyama Resettlement Township, which has dilapidated infrastructure.