President Mahama orders local financing for stalled €277m Tamale- Damongo water facility
President John Dramani Mahama has directed the Ministry of Finance to mobilise local funding to revive the stalled €277 million Tamale and Damango water projects, after an external financing facility for the initiative was withdrawn.
Speaking during the Sod-Cutting ceremony for the construction of 24-Hour Model Market, Kukuo (Tamale), President Mahama explained that, the original funding package, which had been approved by Parliament, was intended to address long-standing water supply challenges in Tamale and surrounding communities. However, the facility was reportedly withdrawn following Ghana’s debt default and ongoing debt restructuring process, which affected the country’s access to external credit.
“When we came, Parliament had approved a €277 million facility for the Tamale and Damango water projects. Unfortunately, because the past government defaulted in debt payment and we declared that we couldn’t pay our debts, the EU withdrew the loan,” President Mahama said.
He explained that attempts to restore the facility have been delayed due to uncertainty around the debt restructuring programme, forcing government to consider an alternative approach.
“The EU drew back the loan and said they are waiting for the debt restructuring. We don’t see any sign that it will come soon,” he noted.
As a result, the President said he has instructed the Finance Minister to raise the cedi equivalent of €277 million domestically to ensure the project proceeds without further delay.
“I have directed the Minister of Finance that we will find our own €277 million in cedis, and we will do the water system ourselves,” he stated.
President Mahama stressed that the intervention is critical to resolving persistent water shortages in Tamale, assuring residents that government is committed to delivering a lasting solution.
“I want to assure the people of Tamale that if I don’t do this water, nobody will come and do it for you. So I can assure you that we are going to fix the Tamale water problem,” he said.
According to him, the upgraded system is expected to significantly boost supply, with an additional 30 million gallons of water per day projected for the metropolis.
He further disclosed that immediate measures are underway to improve existing infrastructure, including the replacement of aging and inefficient pumps to enhance water distribution.
“I’ve asked them to change the old pumps so that we can pump more water. Some of the pumps are very weak, so very soon you will notice an improvement in the water supply,” he added.
The project will also include expanded distribution works, including plans to draw water from Yapei to Tamale South, as part of efforts to strengthen long-term water security.
