Government Signs $6bn Railway Contract

The Government of Ghana and the China National Machinery Import & Export Corporation (CMC) has signed a US $ 6,050 billion contract agreement for the construction of a railway infrastructure from Nsawam through Kumasi to Paga and from Tamale to Yendi.

The contract, which was signed in Accra, yesterday, will enable the first and the second phases of the projects to commence on September 1, 2012 and in June 2014, respectively.

Addressing the delegations from the CMC and Board members of the Ghana Railway Development Authority, the Minister for Transport, Mr. Mike Hammah, noted that good roads and smooth transport system of a country are necessary for the nation’s accelerated economic development.

The Minister pledged the Ministry’s commitment to revamping the railway system to attract investors into the country to improve the economy, and expressed hope the contract will bring a long lasting cordial relationship and collaboration between Ghana and Chinese government.

He was hopeful that the completion of the railway infrastructure will help improve micro economic indicators as well as strengthen the country’s economy, by making the country’s export and import sector more competitive to bring about an improved balance of payment position and create job opportunities for the youth.

The Vice President of the CMC, Zhao Jun, expressed appreciation to Government for the collaboration, and gave the assurance that, with the support and help from the Chinese Government, his company will execute the job satisfactorily.

Mr Daniel K. Markin, a Board member of the Ghana Railway Development Authority, said the completion of the project will open the country to many businesses and reduce road traffic.

He called on all stakeholders and the entire nation to support this project to make the better Ghana agenda achievable.
 
 
Source: ISD

2 comments

  1. one thing i dont understand about ghana is that always china. why ghana is always with country like china, every project contract is for china even the telephones mobiles in ghana are from china. my queston is why? china is devoloping country but not devolped country. there are butter countries like spain,canada,sweden,finland and many other countries better than china.in europe u can not buy any mobile phone from china but in ghana on china products which is very bad, no control only bringing rubish to the country.if ghana will like to sign contract with any country but do it with europe but not china.

    • I think your comment sounds a bit childish.I do understand you to some extend as to why Ghana gov’t always sign contract with China.In the 21st Century every country is looking for a place where there is more flexibility and cost effective.I believe china has demostrated from the years past that It can do effective work with less resources.Even the Europe you talking about is now moving most of their headoffice to China and other Assian countries because all these companies want to reduce cost and maximise profit,and china has proven it can deliver exactly that.

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