Govt earmarks $90m to repair Western Rail Line (pg 45) Jan. 03/08

THE government has earmarked $90 million for the rehabilitation of the western rail line to enhance the haulage of cocoa and minerals including bauxite from the western corridor of the country to Accra for export.
The move, forms part of a new strategy adopted by government to attract investors into the rail sector which has suffered massive deterioration in decades.
It is also to help reduce delays in the haulage of the products to the Tema port as well as ease the pressure on the country’s major road networks.
The Minister of Harbours and Railways, Professor Christopher Ameyaw-Akumfi said this in an interview with the Daily Graphic as he outlined some of the key activities of the ministry during the year.
“The release of the amount for the project serves as seed money which is expected to attract other investors to partner with the government”, he said.
Since its creation some three years ago, the ministry has undertaken many initiatives aimed at attracting investors into the sector to take up the management and rehabilitation of the country’s rail lines in the eastern and western corridors on a Build and Operate (BOT) basis.
These include the removal of the Ghana Railway Company (GRC) from the divestiture list of state-owned companies.
At least 10 consortiums have expressed interest in one way or the other but after signing an agreement with the government, they do not show up again, leaving the lines in a more deplorable state as well as the ministry in limbo.
Professor Ameyaw-Akumfi explained that the reason for the government’s intention to adopt the new approach was to enable it participate in the process to revive the rail lines instead of waiting on investors alone.
“With this, the investors will real secure in putting in money while reducing the risk involved in undertaking such a huge project”, he added.
Professor Ameyaw-Akumfi said the financial outlay for the project was enormous and the consortiums have had it difficult to mobilise finds for the project.
The two lines in the two corridors have been roughly estimated to cost more than $4 billion.
Professor Ameyaw-Akumfi was of the view that should the investors see the seriousness with which the government was carrying out the project, they would feel motivated to put in some funds to finish the first phase.
On the Accra/ Tema rail line which was rehabilitated late last year, he aid the Ghana Railway Company (GRC) operated two shuttles, one in the morning and the other in the evening.
He said it will remain so for now until people become more interested in the service.