The Ghana Railways Development Authority (GRDA) has signed an agreement for the construction of a standard gauge railway line in the Ashanti Region.

The $419m contract was awarded to India-based Afcons Infrastructure, which is constructing the Tema-Mpakadan rail line.

Under the contract, Afcons will build a 51km-long standard gauge railway line from Eduadin to Obuasi. The stretch forms a part of the Western Rail line.

The scope of works also includes the construction of six railway stations and pedestrian footbridges.

Once the construction starts, the project is expected to be completed in 36 months.

After the contract signing, GRDA CEO Richard Dombo said that based on the work Afcons Infrastructure has done on the Tema-Mpakadan rail line, it was not difficult for the Ghana Government to award them this new contract.

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By GlobalData

Dombo said: “We are building modern railway lines.”

Minister for Railways Development Joe Ghartey said that the contract will now be sent to the parliament for approval.

On the other hand, Afcons Infrastructure vice-president Uv Singh said that the company will deliver to expectations and that the development of railways will support Ghana’s economic development.

Last year, Ghana secured a $1bn loan from the Chinese Government to rehabilitate railway system in the country.

The African nation signed two $500m agreements to undertake several railway projects in the country.