SNKE1 TL & PPP Expert (Structuring & Financial Modellining)

The Ghana Western Railway Corridor (WR) project designed to rehabilitate and modernise a 463 km rail network of this strategic infrastructure, linking Takoradi Port with Kumasi and beyond, connecting Ghana’s key mining, industrial and logistics hubs, including manganese, bauxite, and prospective iron ore production areas. 

The revitalisation of the Ghana Western Railway (WR) Corridor represents a strategic priority for the Government of Ghana (GG) and a key opportunity for advancing sustainable transport connectivity under the European Union’s Global Gateway strategy.

This assignment is framed within a policy objective to maximise private sector participation and minimise public financial exposure. Among the structuring options assessed, the Build-Operate-Transfer (BOT) model emerges as the most robust under both fiscal constraint and implementation efficiency scenarios, as it allocates construction and operational risks to the private sector. The Operation Concession model presents a viable alternative, although it implies greater public sector exposure to construction risks. In all configurations, market risk should remain largely with the private sector, underscoring the importance of securing credible demand commitments. The analysis suggests that PPP structuring should remain flexible and responsive to market appetite, while aligning with Ghana’s broader sector liberalisation agenda.

Illegal artisanal and small-scale mining (galamsey)

Galamsey represents a critical environmental, social, and governance challenge in Ghana, particularly in the western regions, where such activities are highly concentrated. These activities have already affected the Western Line corridor in several ways, including:

•    Structural damage: Excavations carried out in close proximity to, or beneath, railway infrastructure can lead to soil instability, embankment failure, and increased risks to operational safety, including derailments; 

•    Damage to railway substructure: The use of heavy machinery (e.g. excavators) for uncontrolled digging removes the supporting soil structure beneath rails and sleepers, leading to significant infrastructure degradation; 

•    Flooding and erosion: Changes in topography and the disruption of natural drainage systems contribute to waterlogging and accelerated erosion, further weakening the railway platform and adjacent land. 

These impacts constitute a major constraint to the GoG’s efforts to rehabilitate, modernise and expand the WR corridor, and may also affect lender confidence and private sector appetite if not properly mitigated.

Global objective: The overall objective is to assist the GG in delivering a comprehensive, bankable and investment-ready financing strategy for the revitalisation of the WR Corridor, aligned with Global Gateway priorities and international financial institution (IFIs) requirements.

Specific objective: The specific objective of the assignment is to prepare a comprehensive financing strategy for the identified investments in the following sections of the WR corridor:

1.    Takoradi – Huni Valley (89 km), to serve the GMC mine at Nsuta (approximately 102 km from Takoradi) in the short term (it is under construction);

2.    Huni Valley – Awaso (147 km), to serve the GBC mines at Awaso in the medium term, and other Bauxite mines in Nyinahin later on;

3.    The potential extension to other bauxite deposits in Nyinahin (approximately 60 km), as a longer-term greenfield development;

4.    Inland logistics connectivity in the medium term, including Dunkwa – Eduadin (86 km) and Eduadin – Boankra (32 km).

The objective is to transform the existing feasibility work into an investment-ready financing strategy capable of mobilising private and development finance. It will include the following: 

i.    Validate and refine the demand, technical, economic and financial assumptions of the existing feasibility study, assessing primarily the reachable freight demand and associated revenue streams over a long-term horizon

ii.    Develop a robust PPP and financing structure aligned with market conditions, capable of mobilising private sector participation through off-take agreements

iii.    Ensure alignment with EU, EIB and international financing requirements, by delivering a clear pathway to financial close

iv.    Strengthen the institutional and regulatory framework for railway sector development , ensuring that it is conducive to private investment and aligned with international standards

The assignment will bridge the gap between feasibility and implementation by converting existing analytical work into an investment-ready framework that can be presented to potential financiers and strategic partners. Therefore, the assignment will also include a prioritised set of financing packages and clearly defined next steps towards financial close, in line with DFI appraisal requirements.

Еxpected outputs

•    Activity Area O3 – Technical support in programming and preparation of projects

•    Activity Area O4 – Operationalisation of the EU connectivity strategy

Requested services, including suggested methodology 

The Consultant will perform the due diligence to assess potential funding for a Public–Private Partnership (PPP) railway project in Ghana. Because the Government of Ghana (GoG) cannot finance the investment through concessional loans, the project must attract private financing, ideally through a long-term (25 years) Build-Operate-Transfer (BOT) concession. The PPP would be supported (“banked”) by offtake agreements with major industrial users of the railway.

The Consultant will prepare a business case to structure the PPP by analyzing:

•    Market demand and revenue over 25 years,

•    Capital and operating costs (capex/opex),

•    Regulatory, legal, and ESG Environmental, Social, Governance (ESG) risks, and

•    Rail tariffs needed for the railway to operate competitively against road transport.

He will also define the minimum investment needed to meet the rail performance requirements of key customers — notably Ghana Manganese Company (GMC) and Ghana Bauxite Company (GBC). The study will evaluate costs and turnaround times from mines to port to ensure rail is commercially viable versus trucking.

Finally, the study outcomes will align with the MTBS (2024) report, producing a shortlist of private investors for a competitive BOT tender under PPP and Procurement law, subject to a Value-for-Money (VfM) test and the GRDA and Ministry of Finance (MoF) approvals. The ultimate goal is to assure the EU and EIB that a viable, risk-mitigated PPP structure can attract financing.

The methodology will be based on a combination of quantitative analysis and qualitative analysis, supported by punctual stakeholder consultations and iterative validation. The Consultant will adopt a flexible and adaptive approach, allowing for adjustments to the scope of work based on emerging findings and stakeholder feedback.

Particular emphasis will be placed on ensuring the robustness and credibility of the analysis, in order to meet the requirements of potential financiers and investors.