Ghana-Burkina Railway project won’t impact country’s debt stock; project to be funded on BOT arrangement – Amewu

Must Read

Minister for Railway Development, John Peter Amewu has disclosed that the Ghana-Burkina Faso Interconnectivity Railway Project will not have any negative impact on the country’s debt stock.

According to the Minister, there is an agreement between the two countries to fund the project through the Build Operate and Transfer (BOT) arrangement.

Speaking at the Ministers’ Press Briefing on the developments in the country’s railway sector on Wednesday, the minister however clarified that the section of the Ghana Burkina Interconnectivity Project between Tema and Mpakadan will solely be funded by the government of Ghana.

He added that, beyond the Tema-Mpakadan section to Burkina Faso will be awarded to a concessionaire to be constructed on BOT arrangement.

Government commences construction of 78km Manso-Huni Valley railway line – Amewu

Justifying this means of funding to the media, Mr. Amewu explained that the construction of a railway line is very expensive and capital intensive compared to road construction. In order not to burden their balance sheet, the two countries have agreed to fund the ambitious project by BOT through a concessionaire.

“The cost of a railway project is quite expensive. The Railway unlike the road infrastructure is more capital intensive. A kilometer of a railway line runs within a range of about 5million to 6million,” Mr. Amewu explained.

He added that, “the section between Tema and Mpakadan is funded solely by government of Ghana. Beyond that section, there is an arrangement to give it to concessionaire to run on what we call Build Operate and Transter (BOT). So that funding amount is not going to reflect on either government’s balance sheet. It’s going to reflect solely on the concessionaire’s balance sheet.”

Submit your stories or articles to [email protected] or Whatsapp them to +233 553620623

- Advertisement -


Latest News

Ignore the fake news; I have not endorsed E-levy – Seth Terkper

Former Minister for Finance under the erstwhile Mahama- NDC administration, Seth Terkper has corrected the impression created by a...

More Articles Like This

%d bloggers like this: