Export-Import Bank of India (Exim Bank) has allocated $398.33m for design and construction of an 84km railway between Tema in the Greater Accra region and the Lake Volta port of Akosombo.
The bank is offering the buyer’s credit (BC) under National Export Insurance Account (NEIA) to the Government of Republic of Ghana.
BC-NEIA financing mechanism provides a safe mode of nonrecourse financing option to exporters in India and also serves as a market entry tool to both traditional and new markets in developing countries.
Exim Bank has approved $2.84bn for 22 projects valued $3.07bn under the programme to date.
The BC-NEIA programme enables demonstration of Indian expertise and project execution capabilities in emerging markets.
In June, Ghana President John Dramani Mahama announced the government’s intention to construct the railway line.
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Mahama said that the railway line will be used to move people and goods to the northern part of the country through the Volta River with Akosombo as the point of entry.
The Tema Akosombo Railway line will enable the country to pick containers and other cargo including fuel products, cement, and other such products along the line. The 1,435m gauge line will have four stations and two freight terminals.
Image: Export-Import Bank of India Abidjan Representative Office resident representative Pushpesh Tyagi exchanging buyer’s credit agreement for Tema to Akosombo Railway Line Construction project in Ghana with Government of the Republic of Ghana, Accra Minister of Finance and Economic Planning Seth E Terkper. Photo: © EXIMBANK.