Ghana signs $1bn loan agreement with China to refurbish railway transportation

The Ghanaian government has inked two agreements with the Chinese government to get a USD 1 billion loan to refurbish railway transportation in the West African country.

The Ghana News Agency has been reported by Joe Ghartey, current Ghana’s Railway Minister that the government has ventured into two agreements worth USD 500 million with the Chinese authorities. The Western and Eastern rail lines totalling 930km, as well as other railway projects will be undertaken with the new investment, he added. The fund will be utilized to construct lines from Tema to Akosombo, as reported by Railway Technology.

The government of Ghana has ordered 30 trains that are said to be capable of operating at a maximum speed of 160 kilometres per hour compared to the 120 kilometres per hour for the existing rolling stock. The trains will be operated through automated signals and the government accordingly wants to modernize the signalling systems.

Ghana’s Railway Minister stated that railway lines built during the previous administration have largely deteriorated. Accordingly, the government plans to build more than 2,000 kilometres lines within eight years. The Accra-Tema and Accra-Nsawam rail lines have already been rehabilitated as a part of the overall revamp of the rail system, Railway Technology noted.

The rehabilitation will further facilitate transportation of workers and traders including assistance in building railway lines from Dunkwa to Mankranso, a part of the western railway lines. On the other hand, the Minister added that the government already paid all pending salaries to the railway employees. Even an increase in 35 percent salary has been approved by the Ghanaian government.

Also Read: Experts say Belt and Road Initiative can help Ghana achieve infrastructure development