Ghana Denies $2bn Railway Contract With Chinese Firm

The Ghanaian government has denied signing a contract with the China Railway Construction Company (International) Nigeria Limited to develop and modernise the country’s railway network.

The Minister of Railway Development, Joe Ghartey (MP), disclosed this in a letter while reacting to an online report which alleged that the country had reached an agreement with the firm on a 560km railway worth $2bn, about the same cost the firm was using to build the156km Lagos-Ibadan rail line.

The letter, dated June 3, 2019, was titled, ‘Re: CRCC to construct 560km railway line for $2bn — same cost as the 156km Lagos-Ibadan rail’

Ghartey, in the letter, explained that although there had been a memorandum of understanding between the two parties for the Trans-ECOWAS line, the MoU was cancelled due to an alleged breach of the confidentiality clause by the company.

The Trans-ECOWAS line runs along the coast of Aflao on the board of Togo and Elubo, a town near Ghana’s border with Cote d’Ivoire.