
The government has secured a €323 million financing package dedicated to the Northern Ghana Water and Sanitation Project, targeting long-standing water crises in Tamale, Yendi, and Damongo. President John Mahama announced the funding during a meeting with the Regent of the Dagbon Kingdom, confirming that the initiative aims to provide safe drinking water and improved sanitation to approximately 1.5 million people in the Northern Region. The funding arrives as a combination of concessional loans and grants designed to modernise infrastructure and ensure a reliable water supply for the growing population.
Finance Minister Dr. Cassiel Ato Baah Forson finalised the financing arrangement at the 2026 IMF and World Bank Group meetings in Bangkok following discussions with European Investment Bank (EIB) Vice-President Ambroise Fayolle. The total package includes a €225 million concessional financing facility from the EIB, complemented by €98 million in grants. Specifically, the European Commission is providing €68 million, while the Dutch government is contributing €30 million. President Mahama highlighted that these grants significantly reduce the debt burden of the project while ensuring it remains viable for the northern territories.
The project will utilize the White Volta River as its primary sustainable water source. A baseline assessment confirmed the river's suitability, though experts noted that conventional treatment methods will be required to meet safety guidelines for certain parameters. Beyond the long-term construction, the government is taking immediate steps to alleviate water shortages. President Mahama revealed that new pumps will be installed in Tamale to increase water supply even before the main project works commence. This two-pronged approach aims to address the current scarcity while building the massive infrastructure required for future security.
This investment represents a major infrastructure push for Northern Ghana, where water insecurity has historically hampered economic growth and public health. By integrating sanitation services with water provision, the project seeks to improve overall living standards and health outcomes across the three major municipalities. As the technical preparations continue, the government’s partnership with European financial institutions underscores its commitment to securing international support for critical regional development projects.
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