US$ 500m Chinese Loan For Railway Rehabilitation

Five hundred million dollars of the $3 billion Chinese loan will be used t rehabilitate the Takoradi-Kumasi railway line, the Minister of Transport, Alhaji Collins Dauda, has said. In an interview with the Daily Graphic, Alhaji Dauda noted that a subsidiary agreement relating to the rehabilitation project was under discussion in Parliament. He noted that the project, when completed, would open up the Western Region to the Ashanti and Central regions to facilitate the transportation of bulk cargo, which is presently being transported by road. Parliament has already approved for signing the $3-billion loan facility between the Government of the Ghana and the China Development Bank (CDB) to finance agreed Infrastructure projects under the Ghana Shared Growth and Development Agenda (GSGDA), in accordance with Article 181 of the 1992 Constitution and sections 3 and 7 of the Loans Act, 1970 (Act 335). The railway network, which has not seen any major expansion and rehabilitation, will see substantial improvement when the $500 million Takoradi Kuamsi railway project begins. The goal of the credit facility is also to enhance the efficiency and effectiveness of the oil and gas sector, as well as industrial minerals processing and agro industrial ventures. Actual disbursement of the funds will be for projects for which the subsidiary agreement has been approved by the government, through Parliament, and the CDB. Projects under Tranche A1 of the loan agreement include the Western Corridor Renewal Project, with railway components; the Western Corrifor Infrastructure Renewal Project; the Takoradi Port Phase 1 Retrofit Rehabilitation and the Sekondi Free Zone Project involving the development of on-site infrastructure and utility services for the proposed industrial minerals processing estate and alumina refinery. Projects under Tranche A2 of the loan agreement include the Accra Plains Irrigation Project Phase 1 covering 5,000 hectares; the Coastal Fishing Harbours and Landing Sites Project at Axim, Dixcove, Elimna, Winneba, Mumford, Senya Bereku, Jamestown, Teshie, Gomoa Fetteh, Ada, Keta and Moree; the Eastern Corridor Multi-Modal Transportation Project, including the Volta Lake facilities components to upgrade ferries/pontoons, as well as landing sites for Kpandu/Amankwakrom, Kete Krachi-Kwadwokrom, Yeji-Makango, Tapa Abotoase, Dzemini, as well as the upgrading of the Akosombo and Buipe ports. Alhaji Dauda said the rest of the money would be used to boost other sectors, such as gas infrastructure, roads and ports. �When the government approves of the subsidiary agreement, then we will proceed with the rehabilitation process,� he said. He noted that rail transport was relatively cheaper and safer.