The Ranking Member for the Roads and Transport Committee of Parliament, Governs Kwame Agbodza is cautioning government against signing a management contract with South African firm Thelo DB and Transtech in the railway sector.
According to him, the firm does not have the capacity to raise 2.3 billion dollars as required to inject into the sector.
Weeks ago, the President cut sod to construct the new western rail line as part of the government’s drive to expand the railway industry.
Speaking to Citi News, Governs Agbodza said the deal is not in the best interest of the country.
“My checks suggest that the information on Reuters by Thelo DB and Transtech is very misleading. It was only meant to serve their personal interests. We believe that the sponsored article on Reuters is deliberate to help these two companies improve on financing whatever stock exchange they have. Now let’s ask ourselves this question? What is the nature of this so-called railway management agreement that the Ministry of Railways is about to sign?”
“Our railway sector is in crisis. We are just now doing the investment to see whatever we can do. The last time this governemnt signed this kind of management agreement, it ended in a fiasco, and we had to kick them out. Interestingly another South African company, not too long ago, the PDS issue came up. I am cautioning government, you are not signing any agreement that brings $3.2 billion. Indeed, Thelo DB and Transtech do not have the capability to raise the money. In fact, they are trying to dodge Parliament. Their balance sheet is not fit for purpose,” he added.
Thelo DB consortium is set to reach an agreement soon with the Ghana Government for the development of a $3.2 billion Western Railway Line project in the country, reported Reuters.
It is an incorporated partnership between Thelo Ventures and Germany’s Deutsche Bahn Engineering & Consulting. In addition, the consortium comprises Ghana’s Transtech Consult.
