Investors target $1 billion Western Rail project under PPP in Ghana

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Investors target $1 billion Western Rail project under PPP in Ghana

Investors have announced plans to provide US$1 billion to develop the Western Corridor railway network under PPP in Ghana.

The project involves the development of a  330 kilometre rail to support large-scale economic activities in Western Ghana. It would connect the metropolitan area of Takoradi-Sekondi with Kumasi, the second-most populated capital in the country. Takoradi has the second-largest port in Ghana for goods traffic and Kumasi is the connection point between the south and the north of the country.

According to the Transport Minister Dzifa Attivor the government is studying the use of a PPP model to carry out the project due to the several expressions of interest received from investors. Ms. Attivor stated:

"There have been some unsolicited proposals from investors, but we will be able to do some evaluation if we know the approximate cost of the entire project."

"Rail development is capital intensive, we should have started long ago; rail infrastructure is very expensive. Maybe it's about time that government invested in rail infrastructure for operators to come and operate."

The Ghana Railway Development Authority (GRDA) had hired consultants to prepare a feasibility report for the Western Railway Line Infrastructure. The report was recently presented by the consultants and it revealed that there are crucial challenges that ought to be addressed before the supervising ministry officially calls for proposals. Activities of illegal miners, the report noted, pose a serious threat to the endeavour.

The project will be developed in one of the wealthiest zones in Ghana, where a lot of deposits of minerals such as gold, diamonds and manganese are located. It is also the forest region of the country.

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