The loan, bearing a 1.5% interest rate, will be repaid over a 25-year period. The money will be invested in drinking water supply projects.
The project includes the construction of a water treatment plant worth $30 million. It will have a daily capacity of 15,000 m3 with a 25 km transmission pipeline.
The infrastructure will also include a pumping station and several reservoirs.
Also, the loan will allow the west African nation’s plan to rehabilitate and extend the distribution network by at least an additional 50 km.
The implementation of this project will enable Ghana to provide water to 133,000 people in the northern Ghanaian town of Yendi.
Lack of clean drinking water and sanitation systems is a severe public health concern in Ghana, contributing to 70% of diseases in Ghana.
Surface waters are the main drinking-water source for most communities in Northern Ghana.
Ghana’s water deficit, among other factors, has led the government to estimate it will need to invest about $1.6 billion a year over 10 years for infrastructure, to help the country develop the level of services appropriate for a middle-income country.