Ghana is set to mobilise €323 million in grant funding and concessional financing to improve water supply and sanitation infrastructure in Tamale, Yendi and Damongo, as the government intensifies efforts to address persistent water shortages in northern parts of the country.
Finance Minister Dr Cassiel Ato Forson announced the development on Friday, October 16, following a meeting with European Investment Bank (EIB) Vice-President Ambroise Fayolle on the sidelines of the ongoing International Monetary Fund (IMF) and World Bank Annual Meetings in Bangkok, Thailand.
The proposed financing package is expected to support infrastructure development aimed at expanding access to reliable water services and improving sanitation in the three northern cities.
Dr Forson said the discussions centred on securing financing for the Northern Ghana Water and Sanitation Project, which is intended to respond to longstanding challenges affecting water availability and sanitation services in the beneficiary communities.
The €323 million package comprises three major components: 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.
The combination of grants and concessional financing is expected to ease the financial burden of implementing the project, with the grant components reducing the amount Ghana would otherwise need to borrow to fund the infrastructure programme.
In a Facebook post announcing the outcome of the meeting, Dr Forson said the engagement with the EIB vice-president had been productive, with particular attention given to the financing arrangements for the project.
The proposed investment comes amid continuing concerns over access to reliable water supplies and adequate sanitation infrastructure in parts of northern Ghana, where growing urban populations are placing additional demands on essential public services.
Tamale, the Northern Region’s capital, together with Yendi and Damongo, are among the key population centres expected to benefit from improvements under the project.
Beyond increasing access to water, the initiative is also expected to strengthen sanitation infrastructure, an important component of efforts to improve public health, environmental conditions and living standards in the beneficiary communities.
The financing discussions form part of the government’s broader engagements with international development partners during the IMF and World Bank meetings in Bangkok, where Ghana is pursuing support for priority infrastructure projects while seeking to maintain fiscal discipline.
However, the announcement did not specify when the financing agreements would be finalised, when construction would begin or the expected completion date for the project.
The implementation of the project will be critical to determining how quickly the proposed investment translates into improved water access and sanitation services for residents of Tamale, Yendi and Damongo.
