Announcement of IDA Provides Funds for Rehabilitation of Ghana's Railway on June 29, 1981

FOR. IMMEDIATE RELEASE · eWorldBank 181 B H Strt'Pt. '\J.W .. Wa:--hington. D.C 204 H. l.'.S.A.. • Telephone: ,2021 4;"7-1214 IDA NEWS RELEASE NO. 81/110 June 29, 1981 IDA PROVIDES FUNDS FOR ~EHABILITATION OF GHANA'S RAILWAY The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a credit of SOR 23.3 mill ion ($29 mill ion) to Ghana for a project to bring about urgently needed improvements in the country's r a i l VJ a y system . Under the project, technical assistance will be provided for strengthening the management effectiveness and efficiency of the Ghana Railway Corporation and for training its staff. Service on the Western line, between Takoradi and Kumasi, will be improved through the rehabilitation and improved maintenance of its tracks. This line carries a major portion of the country's freight. New telecommunications and signalling facilities \"-Jill be provided for this line. · In addition, diesel locomotives and freight cars wil 1 be rehabilitated and better maintained. The existing workshop facilities and equipment for repair and maint~nance of locomotives and rolling stock will be renovated. Studies will be • made by consultants for further development of the railway. Ghana's overall trans- port planning and coordination capacity will be strengthened by providing technical assistance to the governmen~. The project is expected to yield substantial benefits to the economy by facil i- tating the transport of export products (cocoa·, timber, manganese, and bauxite) and by reducing t:-~r.socr·t co?ts. It wi 11 also help to make the rai lv1ay transport mqre reliable. Improved track maintenance will reduce the risk of derailments and co1lisions; and improved ~omrnunications will result in increased efficiency of operations, greater capacity, and cost reduction. The IDA credit to Ghana is for 50 years, including a grace period of 10 years. It is interest free except for an annual service charge of 3/~ of l~ to cover IDA's administrative expenses. The IDA credit will be iomrnitted when funds are available. The African Development Bank is providing $13 mill ion and the Government of Ghana $22 mil iion towards the $64 mill ion total cost of this project. NOTE: IDA credits are denominated in SDRs (Special Drawing Rights), which are valued on the basis of a 11 basket 11 of currencies. The U.S. dollar equiva- lent of the SOR amount of the IDA credit reflects the exchange rate exist- ing at the time of negotiation of the credit. \. FORM NO. 1121 (5-76) T E C HN I CA L DAT A • PROJECT: Railway Rehabilitation COUNTRY: Ghana TOTAL COST: $64 mi 11 ion I DA F I NANC I NG : SDR 23.3 million ($29 million), standard IDA terms OTHER FINANCING: African Development Bank, $13 million Government of Ghana, $22 million IMPLEMENTING ORGANIZATIONS: Ghana Railway Corporation (for transport planning component) P. 0. Box 137 Ministry of Transport and Com- Accra, Ghana munications Telex No.: 011 or 2189 P.O. Box M38 Accra, Ghana PROJECT DESCRIPTION: It wifl includ~:(a) strengthening thi management effectiveness and the efficiency of the Ghana Rail- way Corporation's (GRC) operations and maintenance through provision of 478 man- months of technical assistance and training; (b) track rehabilitation and main- tenance on the Western line (Takoradi-Kumasi) which carries a major portion of freight traffic; (c) rehabi 1 itation and maintenance of 37 dies~l locomotives and • 240 freight cars; (d) renovation of the existing workshop facility and equipment for effective repair and maintenance of diesel locomotives and rolling stock; (e) new telecommunications and signalling facilities on the Western line; and -(f) consultant studies for further development of the railway. In addition, about 100 man- months of ·techn·ical assistance will be provided to strengthen Ghanais overall transport planning and coordination capacity. PROCUREMENT: Contracts for track materials, tools and equipment, sawmill and quarrying machinery, workshop machines, and telecommunication equipment, estimated to cost $19.6 million.will be procured on the basis of international competitive biddi·ng following Bank/lDA guidelines. Contracts for minor items,. costing less than $250,000 each, and up to an aggregate of $2 million, may be procured in accordance with local procurement procedures. Spare parts for locomotives and track maintenance machinery, estimated to cost $1.8 million, will be procured through negotiated purchases from established and reli- ab 1e supp 1 i ers. CONSULTANTS: About 216 man-months of management experts and 72 man-months of accounting experts wi 11 be needed to assist GRC's senior management. Training experts (190 man-months) will be required to organize and conduct GRC's training activities~ Another 18 man-months of consulting services will be needed for studies of service on the Eastern and Central lines and 8 man- months for studies of the communications system. About 100 man-months of technical assistance wf 11 be needed for transport planning in the· Ministry of Transpori and Communications. · .32% ' ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 1985· - 0 -