Ghana has reached a major financing milestone in efforts to address persistent water shortages in the northern part of the country, following discussions on a €323 million funding package for the Northern Ghana Water and Sanitation Project.
The package, comprising grants and highly concessional financing, is expected to support improvements in water supply and sanitation in Tamale, Yendi and Damongo, where communities continue to face challenges accessing reliable water services.
Finance Minister Dr Cassiel Ato Baah Forson disclosed the development following a meeting with Ambroise Fayolle, Vice-President of the European Investment Bank (EIB).
According to the Minister, the discussions centred on the financing arrangements for the project, which is intended to address longstanding water supply challenges and improve sanitation across the beneficiary communities.
“I have just concluded a productive meeting with European Investment Bank Vice-President Ambroise Fayolle on the financing package for the Northern Ghana Water and Sanitation Project,” Dr Forson stated.
The proposed €323 million package comprises a €68 million grant from the European Commission, a €30 million grant from Invest International, a Dutch government initiative, and a €225 million highly concessional financing facility from the European Investment Bank.
Together, the two grant components amount to €98 million, representing funding that would not ordinarily require repayment, while the EIB facility would provide the larger share of the project’s financing on highly concessional terms.
The investment is intended to improve access to reliable water supply and strengthen sanitation infrastructure in the three northern communities.
The project also reflects Ghana’s efforts to mobilise international development financing to address essential infrastructure needs and improve living conditions.
The Northern Ghana Water and Sanitation Project is expected to play an important role in addressing water supply challenges in Tamale, Yendi and Damongo once the financing arrangements are finalised and the project is implemented.
