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Western Ghana Railway Infrastructure Receives US$708 Million Financing
Seetao 2021-07-29 11:25
  • Ghana's infrastructure will bring huge business opportunities to China's construction machinery, building materials and other industries
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Development financial institutions Deutsche Bank and Investec worked with the Swedish Export Credit Corporation (SEK) and Export Credit Agency (EKN) and the South African Export Credit Insurance Corporation (ECIC) to arrange nearly US$708 million in financing. Construct a 100-kilometer section of the Western Ghana Railway (Takoradi Port to Huni Valley).

The financing includes two loans from Deutsche Bank as the Authorized Lead Arranger (MLA) to support the Ministry of Finance of Ghana. The first loan was supported by EKN and fully arranged by Deutsche Bank. It was a loan of approximately US$618 million and covered most of the costs, while the second loan was a commercial loan of approximately US$89 million, arranged by Investec and Constructed to pay the down payment EKN-backed financing. The latter is backed by ECIC and funded by Investec Bank Ltd, Rand Merchant Bank, a division of First Rand Bank Limited, Nedbank Limited through its London branch and Sanlam Life Insurance Limited through its Sanlam consortium to fund the Capital Markets Department. The engineering, procurement and construction (EPC) contract for this part of the project will be executed by Amandi Investment and Bluebird Finance & Projects as the chief financial advisor of EPC.

The Western Railway Line, also known as the Takoradi-Kumasi Railway Line, runs 339 kilometers from Takoradi Port in western Ghana to Kumasi in southern Ghana. The branch line runs from Dunkwa to Avaso. It is the key to transporting agricultural products and minerals from it to Takoradi Port. It is also the location of important bauxite mines, which is the cornerstone of the country's comprehensive bauxite aluminum master plan. Editor/Xu Shengpeng


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