Ghana launches RFEOIs for port and rail PPPs

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Ghana launches RFEOIs for port and rail PPPs

This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

The Government of Ghana has issued Requests for Expressions of Interests for two PPP projects: the Eastern Railway Line project and the Boankra Inland Port project.

The Eastern Railway Line project will include the financing, development, construction, operation and maintenance of a 330km line linking Tema Port and Accra, the capital city, to Kumasi, as well as the provision of rolling stock, station upgrades, signalling and communication equipment. The line will have a speed of around 150km/h

The project is intended to provide an efficient and safer alternative to the congested road network between Accra and Kumasi, transporting both freight and regular passengers.

The Boankra Inland Port was initiated in 1990 and has been partially developed, with an administration block, access roads and utility connections. However it is not operational. The project aims to create a fully functioning inland port that serves the maritime business community, while easing congestion at the Tema and Takoradi ports, the main ports in Ghana.

The successful bidder will develop an Inland Container Depot (ICD), port administration, shippers and freight forwarders offices, warehouses and commercial buildings, as well as customs coordination protocols, customs clearance procedures and controls.

These projects have been in development for some time. As reported on this platform, the government issued a Request for Expression of Interest for transaction advisory services for the projects in August 2013, with PwC being selected to undertake feasibility studies in July 2014.

The development of the railway and the inland port is intended to meet both national and international goals. The projects will play a crucial role in the socio-economic and commercial development of the Ashanti Region and the Eastern Corridor, and in the promotion of trade to and from the hinterland and the Northern regions of Ghana. They will also enhance Ghana’s role as a transit corridor to landlocked neighbouring countries.

At a market sounding event for the projects in December, the government announced to prospective investors that it is seeking to raise US$1.8 billion to develop the Eastern Railway Line and approximately US$600 million for the Boankra Inland Port.

Interested parties are invited to respond to the RFEOIs until 23 February 2018. For more information, see the Business Opportunities section of our website.

The Eastern Railway project is part of the Ghana Railway Development Authority’s railway master plan. This programme of works, which will unfold in six stages, is intended to modernize the country’s network and add another 4,000km to its length. According to the government, only 130km of the 947km network is operational at present. Most of the network was built in the 1920s or before; no new development has taken place since 1956. In most rural areas, the tracks are overgrown with weeds.

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