Accra-Nsawam, Accra-Tema train service gets US$ 200 million

An amount of US$200 million has been allocated for the immediate development of a fast train service from Accra to Nsawam and from Accra to Tema, with construction expected to start by November this year.

The US$200 million forms part of the equity contribution of government to the development of the Eastern Line on a Build, Operate and Transfer (BOT) basis with government participation.

Mr Ken Ofori-Atta, the Minister for Finance and Economic Planning announced the amount on Thursday, when he presented the mid-year fiscal policy of the 2018 fiscal policy review of the 2018 Budget Statement and Policy of the Government of Ghana, to Parliament, in Accra.

He said one of the major transformational programmes of the Akufo-Addo Government is to build a modern, nationwide railway network system for both passengers and cargo.

He said through competitive bidding, the Ministry of Railways Development had reached the final stage of procuring a strategic investor for the development of the Eastern Railway Line, from Accra-Tema to Kumasi on a BOT basis with Ghanaian participation.

Out of 14 consortiums shortlisted, the preferred bidder, would be chosen by the end of the year for work to begin next year.

Mr Ofori-Atta said the Accra to Ouagadogou rail network, another BOT project, had 11 entities shortlisted, with the procurement process scheduled to complete this year for construction to commence in the first quarter of next year.

This line will serve the Eastern part of Ghana and will go through Ho, Hohoe, Yendi, Tamale, Bolgatanga and Paga.

Our approach is one of building an integrated infrastructural network, to facilitate industrialisation, trade and urbanisation across the country, the Minister said, adding that, to this end, discussions have started with real estate developers to build homes along the 95km Tema to Mpakadan rail line.

On the roads sector, Mr Ofori-Atta said works have started on the Pokuase Interchange under the Accra Urban Transport Project; Tema Motorway roundabout involving the construction of a 3�tier interchange; and the Kasoa and Nungua bus terminals – improvement of existing parking and holding area, construction of a terminal building, walkways, paved road ways, toilets and its associated facilities.

Also, as part of the Kumasi facelift projects, contracts have been awarded for projects including the asphalt overlay in Manhyia, Bantama and the road from Anloga Junction to Tech Junction.

Some of the development projects completed over the period included: the construction of oil and gas enclave roads � (Construction of 10km road along the pipe line including the Amazure bridge); and construction of two lane underpass to link Spintex and East Legon.

Mr Ofori-Atta said routine maintenance works have been carried out on 16,494 km of trunk roads, 4,197 km on feeder roads and 679 km on urban roads to protect the huge investment made in the sector.

Furthermore, there are periodic maintenance works comprising re-gravelling/spot improvement and resealing works have been carried out on 17 km, 60 km and 30 km on the trunk, feeder and urban road networks, respectively.

Minor rehabilitation works covering upgrading and the construction of culverts and drainage structures were carried out on 7 km, 135 km and 30 km on the trunk, feeder and urban road networks respectively.

On infrastructure, the Minister said Ghana faces a major infrastructure deficit in areas such as roads, water, bridges, electricity, hospitals, sanitation, estimated to be in the region of at least US$30 billion, mainly due to the inadequacy of financial resources to undertake the requisite investment.

To bridge this gap, a barter agreement, which aims to open up a new financing model for Ghana in undertaking future projects, had been reached with Sinohydro Group Limited of China, to provide US$2 billion of infrastructure including roads, bridges, interchanges, hospitals, housing, rural electrification, in exchange for Ghana’s refined bauxite.

Mr Ofori Atta announced that a bauxite refinery, would be established within the next three years in collaboration with selected private partners including at least 30 percent local participation.

Mr Speaker, I will like to assure this august House that the US$2 billion of infrastructure to be provided by Sinohydro would not add to the debt stock and would involve a moratorium period of three ears to give Ghana the time to establish an aluminium refinery, the Minister said.

He added that after the moratorium period, Ghana will fulfil its part of the barter agreement over another 12-year period.

Source: Ghana News Agency

Accra-Nsawam, Accra-Tema train service gets US$ 200 million

An amount of US$200 million has been allocated for the immediate development of a fast train service from Accra to Nsawam and from Accra to Tema, with construction expected to start by November this year.

The US$200 million forms part of the equity contribution of government to the development of the Eastern Line on a Build, Operate and Transfer (BOT) basis with government participation.

Mr Ken Ofori-Atta, the Minister for Finance and Economic Planning announced the amount on Thursday, when he presented the mid-year fiscal policy of the 2018 fiscal policy review of the 2018 Budget Statement and Policy of the Government of Ghana, to Parliament, in Accra.

He said one of the major transformational programmes of the Akufo-Addo Government is to build a modern, nationwide railway network system for both passengers and cargo.

He said through competitive bidding, the Ministry of Railways Development had reached the final stage of procuring a strategic investor for the development of the Eastern Railway Line, from Accra-Tema to Kumasi on a BOT basis with Ghanaian participation.

Out of 14 consortiums shortlisted, the preferred bidder, would be chosen by the end of the year for work to begin next year.

Mr Ofori-Atta said the Accra to Ouagadogou rail network, another BOT project, had 11 entities shortlisted, with the procurement process scheduled to complete this year for construction to commence in the first quarter of next year.

This line will serve the Eastern part of Ghana and will go through Ho, Hohoe, Yendi, Tamale, Bolgatanga and Paga.

Our approach is one of building an integrated infrastructural network, to facilitate industrialisation, trade and urbanisation across the country, the Minister said, adding that, to this end, discussions have started with real estate developers to build homes along the 95km Tema to Mpakadan rail line.

On the roads sector, Mr Ofori-Atta said works have started on the Pokuase Interchange under the Accra Urban Transport Project; Tema Motorway roundabout involving the construction of a 3�tier interchange; and the Kasoa and Nungua bus terminals – improvement of existing parking and holding area, construction of a terminal building, walkways, paved road ways, toilets and its associated facilities.

Also, as part of the Kumasi facelift projects, contracts have been awarded for projects including the asphalt overlay in Manhyia, Bantama and the road from Anloga Junction to Tech Junction.

Some of the development projects completed over the period included: the construction of oil and gas enclave roads � (Construction of 10km road along the pipe line including the Amazure bridge); and construction of two lane underpass to link Spintex and East Legon.

Mr Ofori-Atta said routine maintenance works have been carried out on 16,494 km of trunk roads, 4,197 km on feeder roads and 679 km on urban roads to protect the huge investment made in the sector.

Furthermore, there are periodic maintenance works comprising re-gravelling/spot improvement and resealing works have been carried out on 17 km, 60 km and 30 km on the trunk, feeder and urban road networks, respectively.

Minor rehabilitation works covering upgrading and the construction of culverts and drainage structures were carried out on 7 km, 135 km and 30 km on the trunk, feeder and urban road networks respectively.

On infrastructure, the Minister said Ghana faces a major infrastructure deficit in areas such as roads, water, bridges, electricity, hospitals, sanitation, estimated to be in the region of at least US$30 billion, mainly due to the inadequacy of financial resources to undertake the requisite investment.

To bridge this gap, a barter agreement, which aims to open up a new financing model for Ghana in undertaking future projects, had been reached with Sinohydro Group Limited of China, to provide US$2 billion of infrastructure including roads, bridges, interchanges, hospitals, housing, rural electrification, in exchange for Ghana’s refined bauxite.

Mr Ofori Atta announced that a bauxite refinery, would be established within the next three years in collaboration with selected private partners including at least 30 percent local participation.

Mr Speaker, I will like to assure this august House that the US$2 billion of infrastructure to be provided by Sinohydro would not add to the debt stock and would involve a moratorium period of three ears to give Ghana the time to establish an aluminium refinery, the Minister said.

He added that after the moratorium period, Ghana will fulfil its part of the barter agreement over another 12-year period.

Source: Ghana News Agency