Government has concluded agreement with Peatrack Company Limited, a local private investment firm to start the construction of the first phase of the long awaited Eastern Railway Lines in June this year.

The 1.4 million-dollar first phase project would stretch from Tema-Accra-Nsawam, Nsawam-Nkawkaw-Ejisu-Kumasi main line, Kumasi Suburban, Inland Port-Tema-Kumasi Corridor and Bususo-Kibbi Branch line.

Peatrack Limited was purposely established to construct and operate the railway network in the country under a Public Private Partnership for the Design, Build, Operate and Transfer (DBOT) arrangement for a 35-year concessionary period.

The company will pay annual concession fees of up to 3 per cent of turnover to government during the operation phase.

The agreement specified that the railway network would be handed over to government at the end of the concessionary period without any encumbrances.

The company is to wholly finance the project through paying an entry fee of 27 million dollars part of which would be used for the severance payments of current staff of the Ghana Railway Company and for the acquisition of the Corridor.

The Minister of Ports and Harbours, Professor Ameyaw-Akumfi, who signed on behalf of government said since Peatrack was bringing in the funds and absorbing all risks, it required that all Ghanaians gave their cooperation and support for its successful completion.

He said a steering body had been established to monitor work and to report periodically to the government.

Prof. Ameyaw-Akumfi appealed to the media to be circumspect in their reportage on the project and desist from antagonism, which hitherto affected earlier arrangements.

The Chief Executive Officer of Peatrack, Dr Ebenezer Mireku, said the railway project would involve a dual carriageway, electrified, standard gauge with state-of-the-art technology comprising permanent way, railway stations, depots, cargo handling equipment and basic infrastructure for inland ports among other things.

He said NIT Holdings of Hong Kong, a professional assets holding and management entity were providing the funds and the construction of 1500 kilometre dual carriage over ten to 15 years.

Dr Mireku said the company was convinced that the objectives set by government could be achieved through complete reconstruction and expansion.

He said any new railway network should be able to carry bulk cargo such as minerals, transport containerized cargo and offer safe and reliable urban interregional and international transportation of passengers.

"During our period of operation, we shall endeavour to construct other lines to connect all the regional capitals within our area of operation," Dr Mireku said.

Peatrack's consultant for Engineering and Supervision, De Consult is a subsidiary of the German Federal Railways.

Source: GNA