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Eastern Railway Line Project

Sector

Infrastructure

Location

Eastern , Bono East , Volta

District

Value

GHS 1930 million (US$ 1380 million)

Phase

Pre-Investment

Contracting Authority

Ministry of Railways Development

Last update

16-12-2024 00:22:22

Eastern Railway Line Project

Sector

Infrastructure

Region

Eastern , Bono East , Volta

Value

GHS 1930 million (US$ 1380 million)

Phase

Pre-Investment

Contracting Authority

Ministry of Railways Development

Last update

16-12-2024 00:22:22

  • Basic project information
  • Procurement documents
  • Parties
  • Performance information
  • Announcements
  • Gallery

Basic project information

  • Project need

    The Eastern Railway Line links Accra to Kumasi with a branch line from Achimota to Tema port. The total track length is 330 km, and the gauge is 1,067 mm. Apart from the stretch from Accra to Nsawam and Accra to Tema which are being used for passenger traffic, the line is currently not operational due to its poor state. The reconstruction of the Eastern Railway Line will include financing, development and operation of the 330km line and will include the provision of rolling stock, station upgrades, signalling and communication equipment.

    Benefits of the Eastern Railway Line Project It is expected that the Eastern Railway Line when implemented would:

    • Decongest Tema port and enhance the operational efficiency of the port;
    • Provide an efficient and safer alternative to the road network, which is already congested;
    • Enhance Ghana’s role as a transit corridor to landlocked neighbouring countries;
    • Feed traffic from other modes of transport to the Inland Port;
    • Enhance socio-economic and commercial development in the Ashanti Region and the Eastern Corridor; and
    • Improve services to customers and reduce the cost of transport especially in trade to and from the hinterland and the Northern regions of Ghana.

    The concept is to develop the Eastern Railway Line to modern standards in order to provide an alternative, faster, safer and more efficient mode for transportation of freight from Tema Port to an Inland Port at Boankra. In addition, it is being proposed to use the re-constructed Eastern Railway Line for passenger service from Tema Port/Accra to Kumasi hence the reason for using Kumasi as the destination for the Railway Line

  • Description of asset

    The Eastern Railway Line links Accra to Kumasi with a branch line from Achimota to Tema Port. The total track length is 330 km, and the gauge is 1,067 mm. Apart from the stretch from Accra to Nsawam and Accra to Tema which are being used for passenger traffic, the line is currently not operational due to its poor state. The reconstruction of the Eastern Railway line will include development, financing and operation of the 330km line and will include the provision of rolling stock, station upgrades, signalling and communication equipment
  • Description of services

    Given that developing the Eastern Railway line requires a lot of capital investment and has significant associated risks, we have proposed a Lease Contract (landlord model) where Government provides all the basic railway infrastructure whilst the private party provides the rolling stock, operation and maintenance of the infrastructure for the specified contract duration.

    Responsibilities for the Eastern Railway Line under the Lease Contract Structure include:

    • Rolling Stock: Locomotives, Wagons, Coaches, O&M Vehicles
    • Traffic Management: Train and Track Monitoring System, Control Room
    •  Safety and Security: Control Systems, CCTV Cameras,
    •  Operations and Maintenance of Rail Facilities: Ticketing, Train Operations, Railway Track Maintenance, Train Maintenance,
    •  Railway Tariffs: Charge per TEU of Container, Charge per ton of Commodity per Kilometre, Passenger Fares. 

    The private party in this agreement bears the demand and revenue risk and will be responsible for the collection of proposed tariffs based on user charges which will be agreed with the respective regulatory authority. The private party thus is remunerated from the tariffs (user charges) that is collected from end-users of the railway infrastructure and services. The private party will have to be efficient and innovative in its operations in ensuring that it generates enough revenue from its commercial activities. In addition to providing the Railway Line infrastructure for the project, Government is also expected to subsidise the passengers services mainly for socio-economic reasons rather than financial reasons considering the passenger service is generally unprofitable to run.

  • Rationale for selection of PPP mode

    • Leverage public assets and funds with private sector resources from local and international markets to accelerate needed investments in infrastructure and services;
    • Encourage and facilitate investment by the private sector by creating an enabling environment for PPPs where value for money for Government can be clearly demonstrated;
    • Increase the availability of public infrastructure and services and improve service quality and efficiency of projects;
    • Ensure attainment of required and acceptable local and international social and environmental standards;
    • Protect the interests of all stakeholders including end users, affected people, Government and the private sector;
    • Set up efficient and transparent institutional arrangements for the identification, structuring and competitive tendering of PPP Projects; *
    • Provide a framework for developing efficient risk sharing mechanisms; and
    • Encourage and promote indigenous Ghanaian private sector participation in the delivery of public infrastructure and services.

  • Stakeholder consultations

    Information will be published as soon as it is available.

Procurement documents

    Feasibility Study Report

    Transaction Advisory Services for the Development of Boankra Inland Port and Eastern Railway Line Project on PPP Basis

    file_downloadBIP and ERL-Final Report 21-12-2016.pdf

Project milestones

Information will be published as soon as it is available.

Parties

Contracting Authority

Ministry of Railways Development

Contracting Authority Information

  • business_center Ministry of Railways Development
  • location_on PMB Ministries - Accra
  • phone +233302904841, +233302904855, +233302904850
  • emaildevelopment@mrd.gov.gh

Performance information

Key performance indicators Performance failures Performance assessments

Key performance indicators

Information will be published as soon as it is available.

Performance failures

Information will be published as soon as it is available.

Performance assessments

  • Information will be published as soon as it is available.

Announcements

    DEVELOPMENT OF THE EASTERN RAILWAY LINE PROJECT ON A BUILD OPERATE TRANSFER (BOT) BASIS Wednesday 3rd of January 2018

    REPUBLIC OF GHANA MINISTRY OF RAILWAYS DEVELOPMENT AND GHANA RAILWAY DEVELOPMENT AUTHORITY DEVELOPMENT OF THE EASTERN RAILWAY LINE PROJECT ON A BUILD OPERATE TRANSFER (BOT) BASIS REQUEST FOR EXPRESSION OF INTEREST INTERNATIONAL COMPETITIVE TENDERING (ICT) The Government of Ghana (“GoG”) has re-emphasised the need to involve the private sector in the development of public infrastructure by promoting a robust PPP agenda. In this regard, GoG, through the Ministry of Railways Development (“MoRD”) and the Ghana Railway Development Authority (“GRDA”), intends to pursue a PPP arrangement for the development of the Eastern Railway Line (i.e. from Accra to Kumasi and a branch line from Achimota to Tema) on a Build Operate Transfer (BOT) basis. The development of this project will be guided by the National PPP Policy dated June 2011. The concept is to develop the Eastern Railway Line (i.e. from Tema Port/Accra to Kumasi) to modern standards in order to provide an alternative, faster, safer and more efficient mode of transportation for freight and passenger services. The implementation of the Eastern Railway Line Project will include the financing, development, construction, operation and maintenance of the 330km line as well as the provision of rolling stock, station upgrades, signalling and communication equipment. It is expected that the Eastern Railway Line Project when implemented would: Provide an efficient and safer alternative to the road network, which is already congested; Enhance Ghana’s role as a transit corridor to landlocked neighbouring countries; Enhance socio-economic and commercial development in the Ashanti Region and the Eastern Corridor; and; Improve services to customers and reduce the cost of transport especially in trade to and from the hinterland and the Northern regions of Ghana. GoG through the MoRD is therefore inviting prospective bidders (“firms”) to express their interest for the development of this PPP Project. The Expression of Interest should demonstrate the following: The financial strength/capacity of the prospective bidder; The prospective bidder’s technical experience/capacity in carrying out the above project on a BoT basis; and Past experience of similar project. Bidders may form consortiums with other firms to enhance their qualification and must include significant level of Ghanaian participation. Interested bidders may obtain further information at the address below during office hours from 09:00 to 17:00 hours GMT, Monday through Friday: E-mail: development@mrd.gov.gh Tel. No. +233 (0) 302904840 +233 (0) 302904841 +233 (0) 302904855 +233 (0) 302904850 One (1) Original copy and five (5) Photocopies of the Expressions of Interest must be hand-delivered to the address below by 15:00 hours GMT on Friday, 23rd February 2018. The envelope must be clearly labeled on the outside ‘Expression of Interest for Development of the Eastern Railway Line Project on a Build Operate Transfer Basis and addressed to: THE HON. MINISTER MINISTRY OF RAILWAYS DEVELOPMENT 3RD FLOOR P.O. BOX MB 453, MINISTRIES ACCRA, GHANA

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About Us

In 2010, the Ministry of Finance (MoF) established the Public Investment and Assets Division (PIAD) to ensure the efficient and effective management of public investments, state interests, and assets, and to promote sustainable economic growth and development in Ghana. The Division, headed by a Director, comprises four units: the Public Investment Unit, Public Asset Management Unit, Public Entities Unit, and the Public Private Partnership (PPP) Office. The PPP Office plays a lead role in implementing PPPs in Ghana by supporting various Contracting Authorities in the development and management of prospective PPP transactions

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  • languagehttp://www.mofep.gov.gh/divisions/piad
  • emailppp@mofep.gov.gh
  • call+233 (0)30 274 7197
  • room Public Investment and Assets Division, Ministry of Finance Post Office Box M.40, Accra

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