Under the project, 1,000 boreholes will be constructed in rural communities and small towns in the Brong Ahafo, Northern, Western, Eastern, Upper East and Volta regions.
The Minister of Finance, Mr Seth Terkper, signed the memorandum of understanding (MoU) with the Chinese Ambassador to Ghana, Ms Sun Baohong, in Accra.
Mr Terkper welcomed the support, saying although the country was at the lower middle income status where many of its development partners had indicated they would withdraw grants, social infrastructure and concessional credits such as China had expanded for Ghana should be explored.
“We know that China has come out very strongly in the last 30 years and you’re an example to many middle income countries in Africa and we want to follow a similar path of development, saying Ghana was picking up many lessons from China.
For her part, Ms Baohong said feasibility on the project had already been conducted a year ago with a Ghana-China team, led by the Community Water and Sanitation Agency which paved the way for work to begin in earnest.
“After signing the exchange of notes , the project will kick off pretty soon and I wish it would be carried out in a smooth manner,” she stated.