Mr. John Amewu, the minister for railways has revealed that the government of Ghana has engaged the Export-Import (EXIM) Bank of India to develop the Eastern railway from Accra through Achimota to Nsawam.
Mr. Amewu disclosed at a press conference in Accra that the Ghanaian government is working on a financing deal with India’s EXIM bank to raise funds for the railway development. He added that the project will feature two branch lines, one from Achimota to Tema and the other from Bososu to Kyebi.
“Financing arrangements are ongoing with India EXIM bank for the development of the section from Accra through Achimota to Nsawam.”
Mr. Amewu
The government is also joining forces with Ghana Railway Company Limited (GRCL) and George Grant University of Mines and Technology to transform the old Railway Training Institute in Sekondi into a degree-awarding institution that will offer training on engineering and other related programs, according to the sector minister.
A similar arrangement was signed in 2016, where the Ghanaian government and India’s Export-Import Bank (India Exim) inked two loan agreements totaling US$422.87 million to fund the development of a railway line and a sugarcane project in Ghana.
Under the terms of the agreement in 2016, the India Exim Bank provided a US$398.33 million buyer’s credit to fund the design and construction of an 85-kilometer railway between Tema and Akosombo, a port on the Volta River’s lower end, as well as two railway terminals. Afcons Infrastructure, a company based in India, designed and built the project.
In view of this past relationship, many people are confident in the success of the government’s arrangement with the bank.
Revamp of the Railway sector in the country
The government has previously stated that it will overhaul the railways industry. In light of this, the government is trying to buy land through the railway development ministry in order to build more railway infrastructure and upgrade current ones.
To accomplish this, the Ministry is working closely with the Lands Commission, through its consultant, to facilitate the acquisition of the required land.
Dr. Asenso-Gyambibi, a consultant on the project, in a workshop, stated that land acquisition for the Ghana-Burkina Faso Railway Line is well underway.
The Ministry of Railway Development is stepping up its attempts to purchase land for rail development.
Similar purchases would be made for the construction of the Central Spine, which runs from Kumasi to Tamale via Sunyani and Techiman, as well as the Trans-ECOWAS Line (Elubo to Aflao).
Additionally, due to design changes from narrow gauge to standard gauge, additional land is necessary for the existing lines (Eastern Line, Western Line, and Central Line) where the government had already acquired the right-of-way.
A practical demonstration of the use of current surveying technologies such as hand-held Global Positioning Systems (GPS) was given as part of the workshop, which should help the Lands Commission team do their assignment with increased efficiency and convenience.
Following the program, a number of the over 100 participants expressed gratitude for the knowledge and insight gained and offered their support for the rapid acquisition of property for railway development.
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