Railway Project

The Ministry of Railways Development was established by the President of the Republic of Ghana, H.E. Nana Addo Dankwa Akufo-Addo in February 2017. The Ministry has been tasked with ensuring the rapid development of a modern rail network in Ghana.

Connecting the major cities of Accra, Kumasi, Sekondi-Takoradi, and Tamale; the use of Ghana as the route for transporting goods from landlocked countries north of Ghana, such as Burkina Faso, to the ports of Tema and Takoradi and also from the ports to the landlocked countries; the presence of major mineral deposits of manganese, bauxite, and iron ore along the route of the existing railway’s network; the potential to attract other bulk cargo such as cocoa, cement, mining equipment, and petroleum products onto the rail network; the expansion of the ports of Tema and Takoradi; the proposed creation of inland rail terminals; the development of new industrial estates; the development of new settlements and the complete transformation of the economy, based on the backbone of a nationwide robust and modern railways network, all make a compelling case for the focus on the railway sector in Ghana.

The existing network consists of three lines: The Western Line, the Eastern Line, and the Central Line (from Huni Valley to Kotuku). Built during the colonial period, what is still operational is barely 13% of the approximately 947 kilometers of rail
that existed at independence in 1957. These lines are all narrow (Cape) gauge, single-track lines. What is left of it, is used for both freight and passenger traffic. Over the years, the track and rolling stock have all deteriorated, due to lack of maintenance.

The Ghana Railway Master Plan, completed in 2013, is a guide for the fulfillment of the Ministry’s mandate. The Master Plan proposes a new railway network of 4,007.6 km with an investment of approximately US$21,507,920,000.00. All the new rail networks will be standard gauges. The Ghana Railway Master Plan envisages that the total rail network of 4,007.6 km is to be done in six phases. The Government of Ghana, through the Ministry of Railways Development, having reviewed the Ghana Railways Master Plan, has identified specific phases of the Master Plan as Priority Projects for the next few years. The proposed time frame for the execution of these Priority Projects is from July 2016 to June 2020.

These Priority Projects are Phase 2 of the Master Plan and some railway lines in Phase 3 and Phase 5 of the Master Plan.
This is as of 2013 and the figure has not been reviewed Phase 2 covers approximately a total of 1234km. It involves the construction of the following: Takoradi – Kumasi (Western) Line (339 km) (with a branch line from Dunkwa to Awaso)
Accra – Kumasi (Eastern) Line (300 km).  The lines in Phase 3 that have been included in Priority Projects for the next four years are the following

Kumasi – Nyinahin Line (58 km)
Tamale – Yendi Line. (102 km)
The total length of the rail network identified as a Priority Project is 1394 kilometers.

Implementing these Priority Projects will create jobs and facilitate trade and industrial development. This will in turn stimulate economic growth. In the process, new towns and cities will be developed and older towns would be revitalized. The railway projects will take the burden off the road network and ensure longer lifespans of newly constructed roads. The development of the railway sector will completely transform the economy.

There are unlimited opportunities for the private sector in the development of the railway network, in the provision of related services, and in the development of associated infrastructure. The Government of Ghana welcomes various forms of collaboration with the private sector in the development of the rail network, the provision of railway-related services and associated infrastructure in Ghana. The railway lines to be completed in the period, 2016 to 2020 are set out below. All the lines will be for both passenger and freight.

Housing Projects

The Ghanaian coastal stretch experiences extensive beach erosion, mainly due to the impact of wave action. Currently, the Mensah Guinea, Ningo-Prampram, Cape Coast, Shama, Dixcove, and Anomabu coastal stretches are experiencing extensive beach erosion posing major threats to life and livelihood; as well as buildings, salt pans, fish landing sites, and other infrastructure sited in these areas. Governments over the years have been making investments in coastal protection in order to manage shoreline recession. Projects have been implemented at Keta, Ada, Atorkor-Dzita, Sakumono, Dansoman, Elmina, Takoradi, Axim, Dixcove, Adjoa and Aboadze to manage shoreline.

The proposed, Mensah Guinea, Apam, Kokrobite, Bortianor, Maritime University, Nungua, Takoradi, Anyanui, Essipong, Ningo-Prampram and Anomabu Coastal Protection Projects are interventions meant to mitigate coastline recession and consequent losses. Each of the projects is estimated to cost about US$150 million. The successful implementation of these projects will serve to manage shoreline protection for the protection of lives, existing and future physical and social infrastructural development; reclamation of land; development of fish landing sites and beaches; promotion of tourism; and enhancement of sanitary conditions. Also, investors will be encouraged to invest in infrastructure as a result of the reclamation of land.

Aviation Projects

The project seeks to re-launch a flag carrier for Ghana with the private sector participation as part of plans to make Ghana an Aviation Hub within the West Africa Sub-Region and beyond. Plans are far advanced to engage Ethiopian Airlines as a strategic partner. Shareholding Structure: 10% Government Non-Contributory Shares; 41% Domestic shares & 49% Foreign shares Per the Terms of Reference, the Transaction Advisor is expected to:

  • Undertake a market assessment of regional and international routes
  • Undertake (technical, legal, financial, economic, and environmental) due diligence to identify various options and shareholding structures.
  • Undertake pre-feasibility and feasibility studies
  • Market the project to potential investors
  • Develop a management and procurement plan

ESTIMATED COST AND REVENUE

  • US$200million (Excluding aircraft acquisition)

Contact
The Ministry of Aviation
P.O. Box KA 9180
3rd Floor, NCA Tower, Airport City, Accra.
Tel: +233 302 774 995

HOUSING PROJECTS

The Ghanaian coastal stretch experiences extensive beach erosion, mainly due to the impact of wave action. Currently, the Mensah Guinea, Ningo-Prampram, Cape Coast, Shama, Dixcove, and Anomabu coastal stretches are experiencing extensive beach erosion posing major threats to life and livelihood; as well as buildings, salt pans, fish landing sites, and other infrastructure sited in these areas. Governments over the years have been making investments in coastal protection in order to manage shoreline recession. Projects have been implemented at Keta, Ada, Atorkor-Dzita, Sakumono, Dansoman, Elmina, Takoradi, Axim, Dixcove, Adjoa, and Aboadze to manage shorelines. The proposed, Mensah Guinea, Apam, Kokrobite, Bortianor, Maritime University, Nungua, Takoradi, Anyanui, Essipong, Ningo-Prampram, and Anomabu Coastal Protection Projects are interventions meant to mitigate coastline recession and consequent losses.

Each of the projects is estimated to cost about US$150 million. The successful implementation of these projects will serve to manage shoreline protection for the protection of lives, existing and future physical and social infrastructural development; reclamation of land; development of fish landing sites and beaches; promotion of tourism; and enhancement of sanitary conditions. Also, investors will be encouraged to invest in infrastructure as a result of the reclamation of land.

PROJECT BACKGROUND

Beach erosion is experienced along many sections of the Ghanaian coastal stretch of about 550km, and results from several factors. The causes of coastal erosion are both natural and man-made. The main cause is wave action. Beach erosion along the Mensah Guinea, Apam, Kokrobite, Bortianor, Blekusu, Maritime University, Nungua, Takoradi, Anyanui, Essipong, and Ningo-Prampram coastal stretches has become a major threat to life and livelihood; as well as buildings, salt pans, fish landing
sites and other infrastructure sited in these areas.

Based on the foregoing, the Ministry of Works and Housing has conducted preliminary assessment of the ecological problems of the Cape Coast, Mensah Guinea, Apam, Kokrobite, Bortianor, Blekusu, Maritime University, Nungua, Takoradi, Anyanui, Essipong and Ningo-Prampram coastal stretches. It has been realized that technical feasible and economically viable coastal protection projects can be implemented at these sites.

The anticipated projects are:

  • Mensah Guinea Coastal Protection Project (Behind Independence Square)
  • Apam Coastal Protection Project
  • Kokrobite Costal Protection Project
  • Bortianor Coastal Protection Project
  • Blekusu Coastal Protection Project (Phase II)
  • Maritime University Coastal Protection Project
  • Nungua Coastal Protection Project
  • Takoradi Coastal Protection Project
  • Anyanui Coastal Protection Project
  • Essipong Coastal Protection Project
  • Ningo-Prampram Sea Defence Project (A)

The scope of the implementation of the works under the projects includes, but not limited to, the following activities:

  • Provision of quarry products including the development of a quarry;
  • Provision and supply of a dredger and construction equipment;
  • Dredging of lagoon and management of spoil;

Construction of breakwaters, revetments, and groyne fields with beach nourishment;

  • De-infestation of the lagoon of water hyacinth;
  • Development of measures to control pollution of the lagoon;
  • Project management, relocation, and mobilization;
  • Engineering and consultancy services including soil investigations, coastal modeling and specialist studies.

The critical length of the coastal stretch to be protected for each project is about ten (10) kilometers; and the duration of each project is about 4 years. In the execution of each project, consultancy services i.e. contract administration, management and supervision for the project would run concurrently with the construction phase.

PROJECT OBJECTIVES
1. Protect lives;
2. Protect existing and future physical and social infrastructural development;
3. Reclaim land;
4. Develop fish landing sites and beaches;
5. Enhance fishing and commercial activities;
6. Promote tourism;
7. Enhance sanitary conditions
8. Promote environmental health condition of lagoons

EXPECTED OUTCOME
The expected outcomes of the implementation of the projects are:

Fisheries
Fish is an important source of protein for the Ghanaian diet. Fisheries are the most important source of livelihood or income supplement for residents of the project area, and any reduction of fisheries sources could adversely impact the local population. The ecological restoration of lagoons and the protection of coastal stretches would enhance greatly the development of the fishing communities.

Tourism
The project areas have huge potential for tourism. Prominent among them are the fine beaches and project environs that could be developed into hotels and holiday resorts. The implementation of the projects would add to these tourist attractions and provide tourists with the opportunity to engage in water sports on the lagoon and swimming activities on the beach.

Commercial Industries

The project areas have great potential as major commercial centers. Also, the project areas are located in regions that are home to many agricultural produce. The restoration of lagoons and protection of coastal areas against beach erosion would enhance the establishment of industries including salt, food, and fish processing plants.

Health Sector

The implementation of ecological restoration and coastal protection projects would inevitably result in the improvement of the health of the communities. This would impact positively on the economic and social status of local inhabitants.

ESTIMATED COST
The preliminary estimated project cost of each project is about US$ 150 million. The actual cost of each project would be determined upon detailed design. Each project can be executed in phases.

REMARKS
For all the projects, feasibility studies are yet to be prepared

CONTACT INSTITUTION
Ministry of Works and Housing
P.O.Box M43
Accra.
Telephone: 0302-685550/0302-685519
The Chief Executive Officer Ghana Investment Promotion Officer
P. O. Box M 193 Accra, Ghana Tel:0302665125-9
Email: yofi.grant@gipcghana.com

THE CENTRAL SPINE

595 km, when developed it would facilitate the transportation of passengers and freight cargo from the South to the North of Ghana and onward to Burkina Faso and the Sahelian Region. At the Kumasi Junction, the Central Line splits into two lines, the Eastern Line and the Western Line.

This will lead to a major transformation of the economy. The Ministry of Railways Development is going through a procurement process to engage consultants to undertake financial, economic, social, and environmental studies as well as surveying and mapping out the right-of-way. The estimated cost of this line is US$3,332,000,000.

KUMASI – NYINAHIN
This line is 102 km. At Yendi (Sheni) lies 2. 7 billion metric tons of unexploited iron ore. The line is a branch of the Central Spine Line. The approximate cost of the line is US$571,200,000.

CONTACT INSTITUTION
Ministry of Railway Development
PMB Ministries – Accra
Phone: +233 302904840, +233302904841, +233302904855, +233302904850
Email Address: development@mrd.gov.gh

The Chief Executive Officer

Ghana Investment Promotion Officer
P. O. Box M 193 Accra, Ghana Tel:0302665125-9
Email: yofi.grant@gipcghana.com

THE EASTERN LINE

Covers a distance of 300 km from Accra to Kumasi with a branch line from Accra to Terna. Apart from the 20 km Accra-Terna Line and the 40 km Accra-Nsawam Line, which is all used for passenger services, the rest of the line is in disrepair and inoperative. The town of Kibi is between Accra and Kumasi. Here, significant bauxite deposits of approximately 180 million metric tons may be found. Mt. Ejuanema also on the Eastern Line has 5 million metric tons of bauxite. Both deposits are yet to be exploited.

The Eastern Line also connects to the Central Spine which terminates on the border with Burkina Faso at Paga. It has the potential for significant passenger as well as freight traffic. A proposed inland rail terminal (Boankra Inland Port) also lies on the Eastern Rail Line. Pricewaterhouse Coopers (PwC) are the Transaction Advisors. They have reached the stage where we are requesting them to issue a Request for Proposal to procure investors for the development of the line. The estimated cost of this line is US$1, 680,000,000.

THE WESTERN RAIL LINE

It runs from the Takoradi Port to Kumasi with a branch line from Dunkwa to Awaso. It is a total of 339 kilometres. Today it is arguably the line that lends itself most readily to a BOT or BOOT Model of financing. This is because of the existence of various off takers and potential off takers on the route. Two mines are on this route. The Ghana Manganese Mine at Nsuta is 64 km from the port of Takoradi and relies on rail as well as road to transport manganese from Nsuta to the port of Takoradi. Its preferred mode of transportation is by rail and it is the inefficiency of the existing narrow gauge rail line, which compels it to use road, in addition to rail to transport manganese to the Takoradi Port.

There is a bauxite mine at Awaso, 239 km from Takoradi. This mine has used the rail network in the past, but it currently transports all its bauxite by road to the port of Takoradi because the rail line between Awaso and Nsuta, near Tarkwa, cannot be used. Opon Manso, which is also along the Western Line, has iron ore reserves of 150 million tons. This is yet to be exploited. Cocoa is also found along the corridor in commercial quantities and before the collapse of most of the Western Line, cocoa was transported in significant quantities by rail. The last time cocoa was transported by rail using the Western Line was 2006.

Transportation of other bulk cargo such as; cement, mining equipment and petroleum will also benefit from the construction of the rail line. Out of a total route length of 339 km, only 66 km from Takoradi to Nsuta is operational. The estimated investment required to construct a single standard gauge rail line along the Western Line is US$1, 898,400,000. Front End Engineering Designs have been completed and Government is ready to appoint a Transaction Advisor to advice on the EPC Contractor and the Funding Model. Significant proposals have been received including proposals for BOT and BOOT. The Western Line also connects to the Central Spine which terminates on the border with Burkina Faso at Paga.

TAMALE AIRPORT CITY & INDUSTRIAL PARK (200Ha)

The Tamale Airport and Industrial Park (TACIP) project is one of 8 catalytic projects in the Greater Tamale Metropolitan Area (GTMA) Master Plan and is an important driver for the economic transformation of northern Ghana. The project takes advantage of, and builds upon, the ongoing expansion of the Tamale Airport into international status, to connect it globally as well as to a growing network of aviation centers nationally and across the sub-region.

The rapid population growth and the planned modernization of Tamale provide opportunities for investments. As an aviation hub, Tamale has many location advantages. It is on the flight path to North Africa, Europe and beyond and is one hour closer; it has closer proximity to most West African cities and has flexibility in terms of land available for development than any other airport in Ghana.

To make the Tamale international airport viable, the agricultural opportunities in the north also need to be fully exploited to provide cargo opportunities. The TACIP plan outlines the ff projects: Logistics Parks, FTZ, integrated freight hub, warehousing and industrial park; ICT and an IT park; Office Park development; hotel, meetings and convention facilities among others. The planned area for the TAIP project is 200 ha and includes lands already owned by the government through the Aviation Ministry, lands SADA has acquired or plans to acquire. The aviation industry is a major booster of the economic growth and development of any country. It is estimated to cost $ 1.5 billion and the time frame is 8-10 years. A collaborative effort involving the Development Authority, the Aviation ministry and other relevant sector ministries, Local Government authorities, and private sector bodies combined with the right incentive packages are necessary for the project to succeed.

PROJECT COMPONENTS

The proposed Tamale Airport City and Industrial Park (TACIP)project is one of several outputs of both the zone-wide Concept Planning exercise and a specific Master Planning of the Greater Tamale Metropolitan Area (GTMA) and a Buipe Waterfront City and Inland Port. These plans are close to completion and await government review and approval. The purpose of the overall planning exercise is to position the Northern Savanah Ecological Zone (NSEZ) for transformational development by providing guidance for public investments and project ideas for private investments or suitable for Public Private Partnerships.

The TACIP is one of 8 strategic catalytic projects identified in the Greater Tamale Metropolitan Area Plan (GTMAP) is designed to catalyze investments to transform Tamale and positive spin-offs for growth across northern Ghana. The Tamale airport is already undergoing expansion. The longest runway in West Africa has already been completed. Passenger and cargo terminals are planned. The TAICP builds on these plans to provide a more comprehensive spatial plan and a more diversified project idea.

The project aims to develop service and logistics capabilities in the airport area, expand services and air travel, stimulate industries and provide first-class residential accommodation, and provide thousands of jobs to consolidate Tamale as the business and logistics hub and gateway to the Sahel. Specific projects include warehousing and logistics facilities; Hotels, Convention Centre, and Exhibitions; Supporting Service Industries; supporting commercial activities; transport and transit facilities; shopping malls; Banks and other business Offices and facilities. The plan also identifies complementary public infrastructure projects such as road networks, utilities including water and electricity; parking spaces; green spaces; well-planned locations for green spaces among others.

PROJECT OBJECTIVES

  • To capitalize on the development of the Tamale International Airport and develop a 200ha Airport City around it;
  • To promote the growth of the aviation sector with more air links between Tamale and other destinations in West Africa in both cargo and passenger traffic.
  • Complement airport city with logistics, aviation support services, and industrial sector development

PROJECT COMPONENTS

1. A vibrant economy in and around the airport
2. One of the most modern and best-organized airport city infrastructures in West Africa
3. Logistics infrastructure that will turn Tamale into the logistics hub of West Africa
4. A get-away place for residents of congested, grid-locked cities in Ghana and West Africa
5. Over 10,000 jobs within 10 years
6. Catalyse commercial agriculture such as horticultural products for export.

ESTIMATED COST AND REVENUE

  • $1.5 Billion over an 8-10-year period.
  • Feasibility studies and detailed designs for specific sub-projects are yet to be undertaken.
  • A Special Purpose Vehicle (SPV) to raise capital and oversee project implementation is envisaged. Infrastructure engineering designs and building designs for the start-up phase and for these to be marketed for construction work to commence by early 2020. Additional land acquisition is also required.

CONTACT INSTITUTION

Northern Development Authority
Opposite American Embassy, Accra-Ghana. +233 372 028 997(8)(9) info@ndagh.org
The Chief Executive Officer
Ghana Investment Promotion Officer
P. O. Box M 193 Accra, Ghana Tel:0302665125-9
Email: yofi.grant@gipc.gov.gh

NEW AIRPORT CITY IN PRAMPRAM IN THE GREATER ACCRA REGION

The new airport will be modeled on the aerotropolis concept. This entails the broadening of airport activities to perform functions beyond the traditional transport terminal concept. Services like hospitality, entertainment, commercial, sports, industrial and other social and economic zones will be incorporated. Apart from serving as a hub for people and goods, it will also serve as a gateway to the country’s industrial impetus and to overall economic development. The development of the new airport city will include the construction of convention centers and business hotels. A land size of 60,000 acres located at Prampram, in the Greater Accra Region has been earmarked for the project. The site is off the Accra-Aflao TransWest African Highway.

Contact

Ghana Airports Company Ltd
PMB 36, KIA, Accra, Ghana, West Africa
Tel: +233 302 776 171 +233 302 760 981 +233 20 2000 201

HOME-BASED CARRIER (HBC)

PROJECT OBJECTIVE

Acquisition of two (2) Boeing aircraft as partner and other strategic interest and the establishment of a reliable home-based national airline to provide regional, sub-regional and inter-continental air transport Service

DESCRIPTION

The project seeks to re-launch a flag carrier for Ghana with the private sector participation as part of plans to make Ghana an Aviation Hub within the West Africa Sub-Region and Beyond. Plans are far advanced to engage Ethiopian Airlines as strategic partners. Shareholding Structure: 10% Government Non-Contributory Shares; 41% Domestic shares & 49% Foreign shares.

Per the Terms of Reference, the Transaction Advisor is expected to:

  • Undertake a market assessment of regional and international routes
  • Undertake (technical, legal, financial, economic and environmental) due diligence to identify various options and shareholding structures
  • Undertake pre-feasibility and feasibility studies
  • Market the project to potential investors
  • Develop a management and procurement plan

ESTIMATED COST AND REVENUE

  • US$200million (Excluding aircraft acquisition)

Contact 

The Ministry of Aviation
P.O. Box KA 9180
3rd Floor, NCA Tower, Airport City, Accra.
Tel: +233 302 774 995