Government signs $3.2bn agreement to revamp Western Rail Line

The government, on Monday, August 22 signed a a $3.2 billion agreement with South African firm, Thelo DB, to revamp the Western Rail Line.

The revamp of the Western Rail line, according to government will ensure efficient mobility of passengers and freight.

It is also expected to ease transport of mineral resources.

Per the agreement, the Ghana Railway Company Limited (GRCL) will act as the rail operator, while Thelo DB consortium will play the role of a rail manager.

The consortium will work with the African Export-Import Bank (Afreximbank) as the financier and mandated lead arranger to structure and mobilise financing for the development of the Huni Valley to Dunkwa through Awaso and Nyinahin to Eduadin sections of the Western Railway Line, a distance of 300 kilometres.

Additionally, the agreement will require the rail manager and the rail operator working together to provide operations and maintenance management of the entire Western Railway Line.

The undertaking will serve as a framework through which Thelo DB consortium is appointed as a service provider for the GRCL in relation to the rail project.

Speaking at a short ceremony to sign the agreement, Minister for Railways Development, John Peter Amewu,  noted that the development of the Western Line forms part of the first phase of the railway master plan which is critical to the success of the integrated aluminium industry being promoted by the government.

“The development of the western railway line forms part of first phase of the railway master plan and is critical to the success of the integrated aluminum industry that is being promoted by government”.

“For instance, projected annual peak of the haulage on the western railway line for manganese and bauxite is about seven million and 15 million metric tonnes respectively. An additional five million metric tonnes of bauxite is estimated to be mined and transported annually from the new bauxite deposit at Nyinahin using the railway”, he said.

On his part, Board Chairman for Thelo DB, Ronnie Ntuli, believed the project will be a key infrastructure for the implementation of the Africa Continental Free Trade Agreement.

According to him, transportation infrastructure is very important to the continent considering the impact of the movement of goods and services.

President of the Afriexim Bank, Professor Benedict Oramah applauded the government for taking such a bold initiative despite the harsh economic environment.