12 November 2018

Ghana, South African Consortium Sign MOU for Accra Sky Train

press release

The Minister for Railways Development, Mr. Joe Ghartey, has signed a Memorandum of Understanding (MoU) with the Africa Investment (AI) SkyTrain Consortium, in South Africa, for the construction of the Accra Sky Train Project.

The MoU was signed on Tuesday, November 8, on the sidelines of the ongoing Africa Investment Forum, in Johannesburg, South Africa.

"We have signed a MoU which will last nine months, where they (Ai SkyTrain Consortium) can do their feasibility into detail. After which, we have given ourselves 45 days to take our concessionary agreements for approval by Cabinet and also by Parliament. By January 2020, we should start the construction of the project," the Railways Minister said.

"We are exceptionally excited also by the fact that a lot of the construction works will be done in Ghana. It will create a lot of jobs in Ghana, because the fabrication and construction will all be done in Ghana."

"There is confidence in the project. The promoters (Ai SkyTrain Consortium) are very serious, and that is why we invited the President, himself, to witness the signing. This should assure the investors that Government is solidly behind it. The economics of this project are also good. We are very excited about the prospects," he said.

The construction of the project will be a major step towards solving Accra's ever-increasing road traffic congestion, with its detrimental effects on economic activity, pollution and the quality of life The Minister stated.

South Africa's Deputy Minister for Transport, Sindisiwe Lydia Chikunga, stated at the signing ceremony s that "we are very excited, and we hope that, in due time, we will witness the construction in 2020. We wish you all the best in the feasibility period".

In his remark, President Akufo-Addo said that after the deterioration of Ghana's rail infrastructure over the years, "it has become a priority of our government to rehabilitate, revive and expand, and get us a railway infrastructure that is fit for purpose."

"It is a good example of intra-Africa co-operation. It is Ghana-South Africa co-operation, meeting and coming together to deal with the problem of urbanization, which is facing all our countries," he observed.

The President added that Accra, with a population of about 250,000 at independence, now has 6 million people, and the Accra SkyTrain Project, he noted "is a very, very efficient solution to it. I am happy that is the result of co-operation between our two countries".

President Akufo-Addo assured the Consortium of the his government's to "manage the country well, give the country good governance, and provide a strong macro-economy, so that those who bring their money into Ghana are protected in terms of the rules of the game, and are also protected by the level of the economic environment".

The African Investment SkyTrain Consortium is made up Wilson Bayly Holmes (WBHO), a construction engineering company in South Africa; BUNENGI Group, a project development company in infrastructure; and Ai Capital, the investment and financing arm of Africa investor (Ai) Group, an international investment banking advisory groups focused on Africa.

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