The development of a hydropower scheme on the Black Volta River at the Bui Gorge had been the subject of many studies; namely, detailed studies by J.S. Zhuk Hydroprojeckt of the USSR in 1966, a Feasibility Study by Snowy Mountains Eng. Corp (SMEC) of Australia in 1976 and another Feasibility Study by Coyne et Bellier of France in 1995.
The proposed 400 MW Bui hydropower scheme was considered to be the most technically and economically attractive hydropower site in Ghana after the Akosombo and Kpong hydropower plants. The feasibility study of 1995 was subsequently updated by Coyne et Bellier in October 2006 to enable the commencement of the project.
The Bui Power Authority Act, 2007 (Act 740) was enacted by the Parliament of Ghana and assented by the President in July 2007 to establish an Authority known as the Bui Power Authority (BPA) which was to plan, execute and manage the Bui Hydroelectric Project.
The Bui Hydroelectric Project was designed primarily for hydropower generation. It however includes the development of an irrigation scheme for agricultural development and presents an opportunity for enhanced ecotourism and fisheries. It also includes a Resettlement and Community Support Program.