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Ghana Approves €598.7 Million to Construct 70 Kilometer Western Railway Line
Posted On 20 Aug 2020
By Richard Adorsu-
Photo Credit: Youtube
NEW AFRICA BUSINESS NEWS (NABN) Accra– Ghana has approved a total of 598.7 million Euros loan agreement with the Deutsche Bank to finance the construction of sections of the Western railway lines. The agreement covers the proposed construction of Standard Gauge from Takoradi Port to Huni Valley. With loan comprises facility agreement of €523,000,000 and Commercial Loan of €75,657,500 between the Government of Ghana and the Deutsche Bank.
Additionally, the House also approved a request for waiver of import duties, import VAT, NHIL, GETfund levy, Exim levy, special import levy and Domestic VAT amounting to €72,287,717.64 on project materials and equipment to be imported for the execution of the project. The terms and conditions of the loan agreement consist of facility amount of €523,000,000 out of which €432 million is for the project, and €91 million for the insurance premium tenure of 18 years.
It also has availability period of four years, interest rate of CIRR+ 0.2 per cent per annum, upfront Fee of 1.25 per cent per annum, legal fees of €100,000 and insurance premium of 17.37 per cent flat. Also, the terms and conditions of the Commercial Loan include the facility amount of €75.7 million out of which €68 million is to finance the project and €7.7 million for the upfront fees and legal fees.
It has a tenor of five years, availability period of 0.5 years, interest rate of 5.75 per cent per annum, commitment fees 0f 0.75 per cent per annum, Upfront fee of 1.25 per cent flat and Agency fee of 0.25 percent flat. Dr. Mark Assibey-Yeboah, the Chairman of the Finance Committee, who presented the Report, said the scope of works include the construction of approximately eight kilometers of standard gauge railway tracks connecting the existing convertible narrow-gauge tracks from Takoradi to the Takoradi Port for easy and efficient access for cargo handling. He said conversion of the 10.6km convertible narrow- gauge tracks between Takoradi and Kojokrom from narrow gauge to standard gauge would include conversion works and materials required a well as the supply of 10 new standard gauge turnouts.
The Chairman said the construction of the new standard gauge railway line from Manso to Huni Valley was approximately 70km of single-track lines, including 10km of double loop lines to improve access to express trains and give priority to passengers over cargo.
For New Africa Business News Richard Adorsu Reports, Africa Correspondent
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The western railway lines will make life lot easy for many within our Country. Accra Ghana. Oko
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I hope we have trains all over Ghana. The government should have a plan for it. Yes our Country is growing faster than anticipated. Thanks to the current government. Thank you for reporting. Kumasi, Ghana. Tuaco
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Love reading your reports and thank you for reporting. Accra Ghana. Adika
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Thanks for reporting. Am only worried about the level of loans. Morogoro Tanzania. Judith
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We Africans and our governments should not be taking loans. Let’s use our own money and invest in our great Continent. Makamba Burundi. Santiana
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Our African governments and our people should not be taking loans from foreign governments and entities. This is call indirect Colonialism, Time to pass that. We are rich in all. Cape town, South Africa. Melamina
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They gave the loans and take the bag of money with them. Very sad. Time for our Leaders to bring Africa first. Lisa in Maun, Botswana
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Thank you for signing me to new Africa business newsletter. London England. Daniel
We the People of Great Africa, our governments and our businesses need to learn from HISTORY. They never like us. They never will. All they want is to exploit us. Shame on them. Johannesburg South Africa. Victoria
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Same games that the colonial masters played for Centuries. Same games are what China is starting to do to our Continent. Time to say no. We don’t need their loans. They coming in Millions from the poorest part of China, India and the middle east with few hundreds of dollars and taking thousands of dollars with them. We in Africa need a unify single policy. Addis Ababa Ethiopia. Bereket
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