The sod cutting ceremony formed part of activities to mark the launching of the 80th anniversary of the school, which would be observed in September next year.
The two million Ghana Cedi project would be funded by the Ghanata Old Students Association (GOSA).
Nene Nagai Kassah, an old student of the school, said the school needs all stakeholders to join in uplifting the legacy and discipline that the school has exhibited over the years.
He advised journalist to write more stories on education and developmental issues rather than the political stories, since education is the key to national development.
The headmaster of the school, Mr Benjamin Apperkon, who is also an old student, said the school needs high voltage generator in this crucial times of power crisis and a fence around the school to prevent encroachment on the school lands.
Some old students, who attended the launch, donated tomato grinding machines, a corn mill, computers, bags of cement and cash to the school.
Ghanata Senior High School was formerly known as the Gold Coast Peoples College and was founded by Rev Dr Isaac Doe Osabutey-Aguedze on February 3, 1936, at Adidome in the Volta Region.
The school, which started with 16 students, now has a student population of 1,500, and had over the years, produced a lot of great men and women, including Nene Nagai Kassah VIII, the First Deputy Governor of the Bank of Ghana.