The Chinese government will provide 1,000 boreholes for Ghanaians in six out of the 10 administrative Regions.
Chinese Ambassador to Ghana Sun Baohong and Ghana's Minister for Finance Seth Terkper signed and exchanged notes to that effect here on Monday.
The Chinese ambassador noted that some of the immediate benefits of the project include reduction in water related diseases, emancipation of the power of women and children as well as improved conditions for industry and businesses.
"The feasibility investigation for this 1,000 borehole project was conducted by Chinese experts one year ago. After signing the exchange of notes today, the project will kick-start pretty soon and I wish it would be carried out in a smooth manner," she declared.
In recent years, China has extended support to Ghana for economic development and social progress, including the construction of schools, hospitals, office buildings, recreational facilities, and donation of goods.
"The year 2015 has witnessed the accomplishment of the University of Health and Allied Sciences in Ho and the Sports Stadium in Cape Coast," the ambassador remarked.
Sun was hopeful that the China-African Summit to be held in South Africa next month would usher in a new chapter of China-African cooperation.
The 1,000 boreholes project is expected to cost 12.5 million U.S. dollars and is an assistance to Ghana by the Chinese government.
"For us at this juncture, this is very important because as you know Ghana has become a lower middle income country therefore its support from grants and concessional financing; though coming in, is set to go down.
"So we want to thank you and we look forward to the realization of, as you said to promote not just safe drinking water but improvement in the health conditions of our people, thank you," Terkper told the Chinese ambassador.
Beside grants and concessional facilities, China has also supported Ghana through loans on projects including the Bui Dam and the Kpong Water station.
According to Terkper, having come a long way over the last 30 years on the path of development, China has become a model that many African countries would like to follow.
He said Ghana was emulating the Chinese in trying to establish an Infrastructure Fund as well as an EXIM Bank, to support infrastructure development and the Small and Medium Enterprises (SMEs).
