Ghana - Negotiations On The Concession Agreement For The New Eastern Line Commence

The Ghanaian-European Railway Consortium (GERC), Investors who are to construct the $2.2 billion Eastern Railway line, have expressed their readiness to commence work as soon as possible.

This came to light at the launch of the commencement of negotiations on the concession agreement for the new Eastern line (standard gauge) railway project on Thursday, April 4, 2019, at Peduase, near Aburi in the Eastern Region. The outcome of the negotiations will be forwarded to Cabinet and thereafter to Parliament for the necessary approvals.

GERC is expected to operate 24 passenger trains and six freight trains after completion of the 340km railway project. The project is on a Build, Operate and Transfer (BOT) basis and according to the Minister, is the first of its kind in Africa.

The Eastern Railway line, links Accra, Tema and Kumasi, is expected to boost economic activities along the corridor, especially at the Boankra Inland Port after completion. The construction is expected to last for three years. The consortium has pledged to commence works in earnest.

There are to be 6 main stations and 34 sub-stations along the double track corridor. The concession period is 27 years and the consortium hopes to recoup its investment within the period.

It is estimated that during the construction phase about 5,000 jobs would be created and an additional 3,000 jobs would be created after completion. Over 500 jobs will be created through the establishment of a concrete sleeper manufacturing plant which is expected to manufacture 1,000 concrete sleepers daily. Ghanaians would be trained in Germany as part of the agreement.

For the procurement process, the Ministry first undertook a market sounding event in December 2017 where over 100 foreign and local investors participated. Thereafter in February 2018, 45 firms submitted their proposals indicating their interest. 36 out of the 45 firms met the minimum evaluation criteria and were pre-qualified to the Request For Qualifications (RFQ) stage in April 2018. In May 2018, 15 firms out of the 36 submitted RFQ documents for consideration. 

Later in July 2018, 8 out of the 15 consortia were pre-qualified to the Request for Proposals stage to submit their Technical and Financial proposals. GERC was adjudged the preferred bidder. This was subsequently approved by the Entity Tender Committee of the Ministry.


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