Debt-Crippled Ghana Signs US$3.2billion Railway Infrastructure Agreement

The debt-crippled Akufo Addo government has made another tone deaf move by reportedly signing a “US$3.2billion agreement” with South African firm, Thelo DB.

According to the rather murky and confusing news reports about the agreement, it is to upgrade Ghana’s western railway line under an arrangement involving Afriexim Bank as a “financier.”

From news reports, Afriexim will bankroll the project but it is not clear under what terms. It is not clear if it will pre-finance the project and then exact payment along with interests from Ghana, or that perhaps the agreement is a BOT (Build Operate and Transfer).

New reports have stoked confusion by saying that Ghana Railway Company will act as the rail operator and Thelo DB Consortium will play the role of a rail manager.

It is, therefore, and so it is not clear if the whole deal is a management contract.

Meanwhile, at a short ceremony to sign the agreement, Minister for Railways Development, John Peter Amewu, is reported to have assured that the project will help reduce the cost of transporting goods along the western corridor as well as reduce traffic pressures on the road.

“The development of the western railway line forms part of the first phase of the railway master plan and is critical to the success of the integrated aluminum industry that is being promoted by the government,” he said.

At the signing ceremony was Board Chairman for Thelo DB, Ronnie Ntuli, as well as President of the Afriexim Bank, Professor Benedict Oramah.