The project, to be sited at Zongo Laka, a suburb of Ashaiman, would be funded by the SOS Children Villages, Ghana.
Mr Ibrahim Baidoo, Ashaiman Municipal Chief Executive, said the project which is to be completed in four months' time, will help improve sanitation in the area.
Mr Baidoo added that it will also help in the prevention of cholera, as there will be easy access to the facility.
He urged residents to be health-conscious, and keep their environments and the toilet facility clean.
He announced that some 2,000 biofill toilet facilities will be constructed for households this year.
He explained that the facility will be pre-financed by the Assembly, for landlords of the beneficial households, to pay within a year.
Mr Charles Cobbinah, Business Development Advisor of the SOS Children Villages, Ghana, said his outfit decided to construct the toilet facility for the community as part of its family-strengthening programme.
Mr Cobbinah stated that even though the family strengthening programme was aimed at equipping the youth vocationally and technically, there was the need to ensure that they had some basic necessities of life.
He announced that when completed, children and the aged would use the facility for free.
He cautioned the youth not to create problems in the area with regard to the running of the facility.