Afreximbank awards grant for railway development
The African Export and Import Bank (Afreximbank) has awarded a grant facility to the Ghana Railway Development Authority (GRDA) to conduct feasibility studies on the rehabilitation of the country's railway infrastructure and network development.
Advertisement
When completed, the feasibility studies are expected to attract investors and partners to invest an estimated $3.5 billion to help revitalise the country’s Western Railway Corridor project under a Railway Management Agreement.
As a result, the two organisations have signed a $1 million agreement to execute and undertake feasibility analysis to support Ghana’s railway corridor and network development.
The agreement was signed at a session on the second day of the 30th Annual General Meeting (AGM) of the Afreximbank in Accra last Monday.
The Managing Director of the GRDA, Michael Anyetei, signed on behalf of the GRDA while the Executive Vice-President in charge of Intra African Trade Bank of Afreximbank, Kanayo Awani, appended her signature for the bank.
It was witnessed by the Minister of Finance, Ken Ofori-Atta, President and Chairman of the Board of Directors of Afreximbank, Professor Benedict Oramah, and other executives of the bank.
The bank also signed five separate financing agreements with different entities to execute projects including the development of industrial parks, special economic zones (SECs) and provision of advisory services in several African countries.
Commercial
Mr Ofori-Atta told the media after the signing ceremony that the facility was to enable the authority to undertake feasibility studies on the rehabilitation of the country's railway infrastructure.
Other Trending Stories
He said the feasibility study would enable the country to attract partners that would support the rehabilitation of the existing railway lines.
“The feasibility studies are to determine the nature of faults facing the lines and to propose concrete solutions to revamping the railway sector in the country,” the Finance Minister said.
Mr Ofori-Atta said the study would adopt an innovative demand-driven non-recourse model to ensure the commercial viability and financial self-sustainability of the project which should not rely on the government’s subsidies.
Project
The Executive Vice-President noted that the feasibility study would offer the opportunity to expand infrastructure and enhance operational efficiencies of existing networks.
“And so, the $1 million was a project preparation facility for Ghana's Western Railway Corridor.
It will serve as the basis for the project,” Mrs Awani stated.
“We at Afreximbank intend to advance this novel approach alongside other partners by deploying a full suite of financial instruments at our disposal to facilitate the implementation of technically feasible and financially viable railway solutions in a timely manner,” she said.
Mrs Awani said beyond Ghana’s project, the bank also signed other financing facilities such as a $400 million global facility with the ARISE Integrated Industrial Platforms (ARISE IIPs).
She explained that Afreximbank was honoured to be executing terms and conditions for a $400 million tranche under a proposed $1 billion global credit facility for ARISE IIPs.
Mrs Awani added that the global facility would support ARISE IIPs in the development of industrial parks, special economic zones (SEZ) projects in several African countries as well as avail trade financing to operating companies in the industrial parks.
Collaboration
She said the agreement was for the design, development and operation of two world-class industrial parks and SEZs in the Malawian cities of Lilongwe and Blantyre.
Mrs Awani said both industrial parks would assist in closing the gaps in the industrial infrastructure required to support the country’s (Malawi) focus on export manufacturing to transform its economy and generate jobs for its young populace.
Advertisement
“The two projects are expected to attract investment exceeding $900 million and will generate around 200,000 direct and indirect jobs in Malawi,” she added.