President John Dramani Mahama has announced that the government will self-finance a major water supply project for Tamale after an earlier external funding arrangement fell through.

Addressing residents in Tamale during his two-day Resetting Ghana Tour of the Northern Region on Saturday, April 18, the President explained that a €277 million facility intended for water systems in Tamale and Damongo could not materialise due to the country’s debt situation.

He noted that Ghana’s debt default affected its ability to access new financing, leading to the withdrawal of the expected funding. As a result, government has decided to mobilise the required resources locally to execute the project and tackle persistent water shortages in the area.

“When we came, we met. Parliament had approved a €277 million facility for the Tamale water and the Damango water. Unfortunately, because the past governments defaulted on the debt payments, we declared that we couldn’t pay our debts.

“If you don’t come pay your debt, do they give you a new loan? So the EU drew back the loan, and they said they are waiting for the debt restructuring to happen and all that. We don’t see any sign on the wall that it will come soon."

"So I’ve directed the Minister of Finance [Dr Ato Forson] that we will find our own €277 million in cedis, and we will do the water system ourselves. I want to assure the people of Tamale. I’m a citizen of Tamale. If I don’t do this water, nobody will come and do it,” he said.

The President added that the planned system will substantially increase daily water output in Tamale, while interim interventions are being rolled out to ease the current supply challenges as preparations for the full project continue.