Kumasi - Paga Railway Project To Be Handled By Local Company

As part of the commitment of the President Nana Akufo - Addo led administration to strengthening local content, government has hinted of its intention to award the Kumasi – Paga railway construction project to a Ghanaian company.

The Minister of Railway Development, Joe Ghartey, made this known in a disclosure to some members of the press at a stakeholder workshop on local content policy for the construction industry in Accra.

He stated that at the moment, 217 companies have submitted their proposals for the projects; out of which, 80 are Ghanaians firms (either directly by themselves, or in partnership with foreign counterparts).

He made it clear that it was the government’s priority to award the 3.3 billion dollar contract to a Ghanaian company but added that every proposal submitted will be thoroughly scrutinized.

In his own words, the rail line contract awarding “is going to be a very transparent process”.

Commenting on a question as to what particular procurement process will be adopted in the project: whether the traditional sole-sourcing, or electronic procurement? Mr. Ghartey said “whatever method that will be used is a method that will be approved by government”.

The hint by the Railway Development Minister has already earned the praise of some stakeholders in the Ghana’s industrial sector. One of which is the AGI.

Rockson Dogbegah, Chairman, Construction Sector of the Association Ghana Industries (AGI) said the news from the government has “set us thinking. We are going to engage with him [the Minister] effectively and seek for opportunities where we can come in”.

Adding that, “at the moment, [they] are excited that there is hope for business opportunity in the railway sector”.

The proposed railway lines (which includes the Kumasi – Paga) is said to be critical to unleashing the economic potential of the nation particularly in trade of goods. It will be fully-funded by government and estimated to cost over $7billion dollars.