Business News of Saturday, 8 April 2017

Source: starrfmonline.com

Railway expansion project: Ghana in talks with Russia

File photo of a train File photo of a train

A delegation from the Russian Railway Company is in Ghana to discuss ways of improving the West African country’s railway system.

The delegation has met the Minister for Railway Development, Joe Ghartey and the outcome of the negotiations would soon be made known.

This was disclosed by the Russian Ambassador to Ghana, Dmitry Suslov.

It is not clear what the nature of the negotiations are, but Ghana could be seeking to tap into the expertise of Russia as that country has the third best railway network in the world.

According to the Russian diplomat to Ghana, the team “is working very seriously. They have met the minister and very soon, you’ll know the results of the negotiations.”

He was speaking at a joint conference organized by leading Russian automotive manufacturers; UAZ, GAZ, and KamAZ, and Universal Motors Ltd to the Russia Automotive Day.

President Akuffo Addo created the new Railway Development Ministry to carry out his administration’s promise of improving the railway network which he believes is the key to transforming the country’s economy. The restructuring project would start with the reconstruction of the railways along the Eastern and Western lines.

The entire project is estimated to cost USD 21m. Parliament has approved a GHC 500 million budget for the ministry, more than the GHC 10 million which was allocated to the sector last year. The sector minister, has said that the restructuring when completed could rake in more revenue than what is being brought in by the production of oil and gas.