Ghana’s Railway Project Attracts 230 Investors

Google+ Pinterest LinkedIn Tumblr +

The bad condition of Ghana’s railways has attracted over 230 investors from all over the world who seek partnership in an attempt to improve and expand railway sector in the country. The investors are looking to invest in the development, establishing new tracks, possibly in North-South area which was initially planned back in the 1950s and then the idea remained restricted to the paper work only.

GRDA (Ghana Railway Development Authority has estimated a cost of $ 21.5 billion for the implementation of the railway development plan and the investors are anticipating their profit in this project if given a chance to invest.

The estimated budget will be used to bring in upgraded coaches, improved tracks and the construction of over 4000 km new railway lines across Ghana.

Ghana’s government does not have enough funds to allocate for this project and undertake the master plan. Mr Richar Diedong Dombo (CEO GRDA) states that the railway authorities have decided to invite the investors to sign a Build, Own, Operate agreement to boost the railway sector.

No tender, till now has been presented in the newspapers. All the bids have been received unsolicited.  According to Mr Dombo, the bidders include banks, individuals as well as the business groups.

Mr Dombo further admitted that the nation lack resources and funds to work on this master plan. It is not fair to invest so much in one sector at the expense of any other sector. There is a need to invest in health, agriculture, transportation and education etc. The nation cannot afford to invest too much in a single direction. That is why this idea of inviting the investors was supported. The railway sector needs huge investment and it is not possible for the state funds to support this sector.

Mr Dombo continues that Build, Operate, Transfer agreement will make it a realistic approach to work on such a huge project.


About Author

Leave A Reply