Ghana has secured a €323 million financing package to improve water supply and sanitation services in Tamale, Yendi and Damongo, as the government steps up efforts to address persistent water shortages in Northern Ghana.
Finance Minister Dr Cassiel Ato Forson announced that the Northern Ghana Water and Sanitation Project will receive a combination of grants and concessional loans to expand access to reliable drinking water and improve sanitation infrastructure in the beneficiary communities.
The funding package comprises €98 million in grant support and €225 million in concessional financing from the European Investment Bank (EIB). The arrangement is designed to support the implementation of the water infrastructure project while reducing the financial burden on the government.
The European Commission will contribute €68 million in grant funding, while Invest International, a Dutch government-backed development initiative, will provide an additional €30 million.
Together, the two grants amount to €98 million, representing approximately 30.3 per cent of the total financing package. Since grants do not require repayment, the funding structure is expected to reduce Ghana’s repayment obligations compared with a package financed entirely through loans.
The Northern Ghana Water and Sanitation Project is expected to support efforts to improve access to safe drinking water, strengthen sanitation facilities and address water supply challenges affecting residents in Tamale, Yendi and Damongo.
The investment also highlights the role of international development financing in supporting Ghana’s water infrastructure, public health and sustainable development objectives.
Improved access to clean water and sanitation remains essential for reducing water-related health risks, supporting local economic activities and improving living conditions for households across Northern Ghana.
Source: newsthemegh.com