Transcript THE STATUS OF THE INVESTMENT DRIVE FOR THE …

LAND TRANSPORT INFRASTRUCTURE
INVESTMENTS IN GHANA KEY TO DEVELOPMENT
AND GROWTH OF NATAIONAL ECONOMY &
PARTNERING OPPORTUNITIES IN KEY RAIL AND
ROADS PROJECTS
BY
HON. DZIFA AKU ATTIVOR
MINISTER FOR TRANSPORT
REPUBLIC OF GHANA
OUTLINE

Introduction

Ghana Shared Growth & Development Agenda(GSGDA)

National Transport Policy

Significance of Transport to Economic Growth

State of Land Transport Infrastructure in Ghana(Road & Rail)

Challenges

Key Road and Rail Projects

Opportunities for Partnership

Conclusion
INTRODUCTION
 Ghana
Africa
is a sub-Saharan coastal nation within West
 Bounded
on the south by the Gulf of Guinea, is
bounded on the north by Burkina Faso, on the east
by Togo and on the west by Cote D’Ivoire
land area of 238,540 km2 and about 536km
width, with Accra, a coastal city as the Capital
 Total
 Governance
by multi-party democracy with a
constitution that guarantees freedom and
liberties to all persons
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MAP OF WEST AFRICA
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ECONOMIC INDICATORS
 Population
of about 24.7million with English as the
official language
 Ghana
attained Lower Middle Income Status in 2012
 Nominal
 Ghana’s

National Economy grew by 7.9% in 2012
By first quarter 2013, economy had grown by 6.7 %
 Inflation
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GDP estimates for 2012 was Ghc73.1billion
rate as at May, 2013 was 11.1%
GHANA SHARED GROWTH & DEV’T AGENDA

The Ghana Shared Growth & Development
Agenda(GSGDA) is Government’s Medium Term
National Development Framework

The GSGDA is anchored on 7 main thematic areas

The Transport Sector falls under the infrastructure
and human settlement thematic area out of which
has been developed the National Transport
Policy(NTP)
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GSGDA THEMATIC AREAS
1.
Ensuring and Sustaining macroeconomic stability
2.
Enhanced competitiveness of Ghana’s Private sector
3.
Accelerated agriculture modernization and natural resource
management
4.
Oil and gas development
5.
Infrastructure, energy and human settlement development
6.
Human development, employment and
7.
Transparent and Accountable Governance
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productivity
STRATEGIC GOALS FOR THE TRANSPORT
SECTOR
The NTP has 7 broad goals namely;
1.
Establish Ghana as a Transportation Hub within the West African SubRegion
2.
Create a sustainable, accessible, affordable, reliable, effective, efficient, safe
and secure transport system that meets user needs
3.
Integrate land use, transport planning, development planning and service
provision
4.
Create a vibrant investment and performance-based management
environment that maximizes benefits for public and private sector
investors
5.
Develop and implement a comprehensive and integrated Policy,
Governance and Institutional Framework
6.
Ensure Sustainable Development in the Transport sector; and
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7.
Develop adequate Human Resource and apply new Technology.
VISION FOR GHANA’S TRANSPORT SECTOR

The Vision for Ghana’s Transport Sector is to:
To provide an integrated, efficient, cost-effective
affordable and sustainable transportation system
that will respond to the needs of society,
supporting growth and poverty reduction, and
capable of establishing and maintaining Ghana as a
transportation hub of West Africa
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SIGNIFICANCE OF INFRASTRUCTURE TO
ECONOMIC GROWTH

Infrastructure key to propelling economic growth and
sustainable poverty reduction

World bank estimates that to achieve 7% growth rate to
combat poverty, sub-saharan countries need to invest
5% of GDP in infrastructure

Transport infrastructure investments enhances socioeconomic development
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CONTRIBUTION OF LAND TRANSPORT TO
GROWTH OF NATIONAL ECONOMY

Improvements in roads and rail infrastructure
facilitates the movement of people, goods and
services from the hinterlands and farming
communities to the city centres for consumption and
to feed agro-based industries and for export.

Improved rail infrastructure supports the export of
mineral ores to Ghana’s Ports and makes our
commodities competitive on the world market
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CONTRIBUTION OF LAND TRANSPORT TO
GROWTH OF NATIONAL ECONOMY

Road
&
Rail
infrastructure
creates
opportunities within the transport and
logistics supply-chain leading to job creation
and poverty reduction

Land Transport facilitates the movement of
goods from Ghana to our land locked
neighbours of Burkina Faso, Cote D’Ivoire and
Niger
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ROLES OF TRANSPORT SECTOR MINISTRIES

The Policy oversight responsibility for the
Transport Sector is handled by 2 Ministries

MINISTRY OF TRANSPORT
Has oversight responsibility for all the modes of
transport, except road Infrastructure

MINISTRY OF ROADS & HIGHWAYS
The Ministry of Roads & Highways has oversight
responsibility for the development of road
infrastructure in Ghana
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STATE OF RAIL INFRASTRUCTURE

Rail Infrastructure




Total route length of 947km(593 Miles)
Track length of 1,300km (807 Miles)
Track gauge of 1067 (3ft.6ins) meters with a maximum axle load of
16 tonnes
Railway Network is divided into 3 main lines with branch lines
Main Lines are;
- Western Line
: 406 Km
- Central Line
: 237 Km
- Eastern Line
: 334 Km

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Only 133.6km representing 14.1% of the entire network of
947 is currently operational
EXISTING RAILWAY NETWORK (MAP)
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WESTERN RAIL LINE

Western Rail Line


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The Western line is the main stay of the rail
network in Ghana
Used to haul mineral ores,(manganese, Bauxite,
Timber, cocoa etc)from the mining communities
to the Port of Takoradi for export
EASTERN RAIL LINE

Eastern Rail Line


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Viability of the proposed Inland Port at Boankra is
linked with the reliability of the Eastern Line
Mineral deposits like bauxite, limestone, diamond
and gold are located along this line.
CENTRAL RAIL LINE

Central Line


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Linked to Western and Eastern Lines respectively
Main link to communities along the line for access
to the Greater Accra and Western Region
RAIL PASSENEGER PERFORMANCE(2008-2012)
1600
Year
2008
2009
2010
2011
2012
No. of Pax
950
1120
1377
1320
967
1400
1200
1000
800
600
400
200
0
2008
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2009
2010
2011
2012
RAIL FREIGHT PERFORMANCE (2008-2012)
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Year Timber Bauxite manganese
2008 15.3 150.77 139.46
2009 1.42 88.41 64.53
2010 0 73.21 372.59
2011 0 20.94 615.72
2012 0 0 617.8
CHALLENGES –RAIL INFRASTRUCTURE

Funding remains key challenge to Rail Transport Infrastructure
provision in Ghana

Obsolete network, operating system & rolling stock

Poor track infrastructure resulting in the closure of greater part of
the Western and Eastern lines and the entire Central line

High incidence of derailment leading to loss in operational hours
and damage to rolling stock

Due to the very poor condition of the Western Line, haulage of
bauxite and manganese are currently by road

Resultant Road Accidents and damage to road infrastructure (high
road maintenance cost)
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RAIL SECTOR REGULATORY REGIME

Establishment of Ghana Railway Development
Authority(GRDA) under Railway Act, Act 2008, Act
779 passed in 2008

GRDA is regulator of railway sector and manager of
railway fixed assets

Government policy to allow competition in rail
services provision

Development of operational terminals to be opened
to private sector participation
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RAIL SECTOR DEVELOPMENT PLANS

Short Term to Medium Term


Master Plan Studies for development of entire railway
network almost completed
Rehabilitation of the Western Rail Line – US$1.2 billion
(Feasibility Studies completed)

Rehabilitation of Sub-urban Rail Lines



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Including Rolling Stock
Accra-Nsawam
Takoradi-Kojokrom-Sekondi
Kumasi-Ejisu
-
US$ 120 million
US$ 165 million
US$ 100 million
Rehabilitation of locomotives and rolling stock to improve
operations
SHORT TERM TO MEDIUM TERM-CONT’ D

Re-construction of the Western Rail line from
Takoradi to Kumasi on a standard guage

Pre-feasibility studies completed for Eastern Line

Packaging of development of Eastern rail line and
Boankra Inland Port on Build Operate Transfer(BOT)
basis

Feasibility studies for Tram services in Accra
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RAIL SECTOR DEVELOPMENT PLANS
MEDIUM TERM TO LONG TERM




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Feasibility studies for the rehabilitation of the Eastern
and Central Lines
Feasibility studies for expansion and construction of
the rail lines to the north
Rehabilitation of the Eastern and Central rail lines
Construction of Proposed ECOWAS rail line along the
Coast from Nigeria to Cote D’Ivoire
PROPOSED EXPANSION OF RAILWAY
NETWORK
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STATE OF ROAD INFRASTRUCTURE
.
Road Transport remains the most predominant mode of
transport accounting for over 90% of passenger and
freight movement and the road infrastructure remains a
backbone of the economy
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STATE OF ROAD INFRASTRUCTURE - CONT’D

Road Infrastructure

National Road Network of 68,067 kilometers as at end of 2012
and can be classified as follows:




Urban Road Network - 12,400 km
Feeder Road Network - 42,190 km
Trunk Road Network - 13,477 km
Ghana’s present road condition mix as at end of 2012
50% Good
30% Fair
20% Poor
NATIONAL ROAD NETWORK SURFACE TYPES
SURFACE CLASSES
TOTAL (KM) %
RIGID PAVED ROADS PORTLAND CEMENT CONCRETE
55 0.08%
PAVED
ASPHALTIC CONCRETE
2,945 4.33%
FLEXIBLE PAVED ROADS
BITUMINOUS SURFACE TREATMENT 11,715 17.21%
GRAVEL
35,770 52.55%
UNPAVED
EARTH
17,583 25.83%
TOTALS
68,067 100.00%
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CHALLENGES – ROAD INFRASTRUCTURE

The delivery of road infrastructure faces many
challenges in spite of large investments made in the
past 20 years


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Inadequate budgetary allocation for road infrastructure
provision
Inadequate revenue to cover cost of routine and periodic
maintenance
Poor axle load regulation and enforcement leading to
rapid deterioration of road infrastructure
INVESTMENT CLIMATE IN GHANA

Tariff Exemption: 100% duty exemption for production equipment.

Investment law guarantees 100% transfer of profits, dividends, etc.

Membership of the Multilateral Investment Guarantee Agency
[MIGA] of the World Bank.

Tax holidays: 3-10 years depending on sector; 10years for free
zones with 8% corporate tax thereafter.

Endowed with natural resources and high literacy rate with
friendly people, it is the investor’s dream.

More information at www.gipc.org or www.gfzb.com
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OPPORTUNITIES FOR PARTNERSHIP
PUBLIC PRIVATE PARTNERSHIP FRAMEWORK

Public Private Partnerships have become the preferred vehicle by
which most Governments in both developed and developing
Countries get critically needed socio-economic infrastructure
constructed

Government is committed to this objective and sees the private
sector as partners for socio-economic development

Government has consequently developed a PPP policy framework
to guide private sector investments in infrastructure Projects

Government’s objective for the Transport Sector under the
National Transport Policy is to create an enabling environment to
attract the private sector to invest in the provision of Transport
32infrastructure and services(www.mofep.gov.gh/division/pid)
CONCLUSION

Government of Ghana sees the Private sector as partners for
Economic development.

As indicated earlier, the large mineral deposits existing along
the corridors of the rail systems create the desired
opportunities for investments in rail infrastructure to yield the
necessary returns on any investments

Therefore I wish to use this opportunity to extend an open
invitation to the investor community to explore opportunities
for Cooperation in the Transport Sector
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THANK YOU!
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