Government, local partners to raise funds for western railway line

Accra, Sept. 18, GNA - Government is partnering the Ghana Manganese and Ghana Bauxite companies to raise 100 million dollars to begin rehabilitation works on the Western Railway line.

Professor Christopher Ameyaw-Akumfi, Minister of Harbours and Railways, who announced this on Thursday, said the partnering agreements were almost finalised.

Prof. Ameyaw-Akumfi made this known in Accra when he received a preliminary feasibility study report on the Kumasi to Paga railway section and the Yendi branch.

The western line stretches from Takoradi through Kumasi with a branch line at Awaso.

The Chinese First Survey Design Institute undertook the study with funding from the Chinese government. The Minister also hinted that government was sourcing funds from the international market to undertake other important railway projects to develop the sector.

He said government had also set aside 90 million dollars of the Euro Bond for the sector.

Touching on the report, Prof. Ameyaw-Akumfi explained that a Chinese delegation was tasked to conduct the feasibility study in July last year conduct.

He said the report was the first to be government owned, since feasibility studies were often conducted by investors who did not hand over the findings to the Ministry.

Prof. Ameyaw-Akumfi said a Ghanaian team was in China to review the draft and the Ministry also made additional inputs before the report was finalised.

The Minister indicated that feasibility study was a prerequisite for any investment drive, and expressed the hope that it would enhance government's effort in seeking investment.

Prof. Ameyaw-Akumfi said with this report, government would now proceed to negotiate with the Chinese government for support, since it expressed willingness in 2004 to assist Ghana's railway project.

He described the report as very impressive, saying "The report went far to give architectural designs and recommended funding sources". The Chinese Ambassador Yu Wenzhe said Ghana and China's economic relations remained strong, and expressed his government's further commitment to assist Ghana to attain middle income status by 2015. He was confident that the cooperation would bring mutual benefit to both countries.

In a related development, the Ministry signed an agreement with an Indian engineering company, Angelique International Limited, for the procurement of 13 million dollars worth of railway maintenance equipment.