Finance Ministry secures €323m for Northern water project

The Finance Ministry has secured a €323 million financing package to address persistent water shortages and sanitation challenges in the Northern Region. Finance Minister Dr. Cassiel Ato Forson finalized the agreement following a meeting with European Investment Bank (EIB) Vice-President Ambroise Fayolle during the IMF and World Bank Group Annual Meetings in Bangkok, Thailand. The initiative, officially known as the Northern Ghana Water and Sanitation Project, will specifically target urban and peri-urban populations in Tamale, Yendi, and Damongo.

The total financing includes a €225 million concessional loan from the EIB, complemented by significant grant funding to ease the country’s debt obligations. The European Commission is contributing a €68 million grant, while an additional €30 million grant has been secured from Invest International. Dr. Forson noted that this combined approach of grants and low-interest facilities is designed to improve water infrastructure without placing an undue burden on the national treasury.

Key components of the project involve substantial infrastructure upgrades to water supply systems and the construction of new faecal sludge treatment facilities. These developments are expected to benefit approximately 1.4 million people in northern Ghana. By expanding the reach of clean water and modernizing waste management, the project seeks to reduce environmental pollution and significantly improve public health outcomes in the beneficiary communities.

Beyond immediate utility provision, the project is structured to bolster climate resilience in a region prone to seasonal droughts. Under the leadership of President John Mahama, the government has prioritized the Northern Ghana Water and Sanitation Project as a cornerstone of its regional development agenda. Officials emphasize that the project will not only provide relief to residents but also create a more stable environment for local economic activities and urban expansion.