Ghana’s ongoing effort to improve the rail sector has been boosted by an agreement between mining firm, Ghana Manganese Company, and the Ghana Railway Company Limited for the repair of an important section of the dilapidated Western Rail Lines.
The $10 million deal will rehabilitate the approximately 15km Kojokrom to Tarkwa section of the Western Rail Lines and represents freight advance from Ghana Manganese Company to the Ghana Railway Company.
Minister for Railway Development, Joe Ghartey, said Wednesday at a short press conference to announce the agreement that the Kojokrom to Tarkwa line represents an economically viable and critical part of the 340 km Western Rail Line due to its importance to mining companies, one of which is the Ghana Manganese Company Limited.
He said $4.9 million will cover operational expenditure for the rehabilitation project, while $5.1 million will cater for capital expenditure.
The $10 million advance payment will then be deducted from freight fees over a period of three years, he added.
“Even before this agreement, the Ghana Railways Company Limited had started rehabilitation of the line, from Tarkwa to Nsuta, where Ghana Manganese is located,” he said.
The project is expected to span a maximum of seven months, although Mr. Ghartey is confident it may be completed within four months.
The Minister revealed that there has been a drop in quantity of manganese freighted for the Ghana Manganese Company by as much as 30,000 tonnes due to the poor rail line that has derailed a number many times.