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100628 Iptghana Vol 12 Feasibility Eastern Line Ministry of Finance and Economic Planning Republic of Ghana Integrated Transport Plan for Ghana Volume 12: Pre-Feasibility Study on the Rehabilitation of the Eastern Railway and on Service Coordination Between the Eastern and the Western Lines Final Version June 2010 Financed by the 9th European Development Fund Service Contract N° 9 ACP GH019 In association with Egis Bceom International Executive Summary Rehabilitation of the Eastern Railway has been shown to be economically viable by the ITP evaluation on the basis of traffic levels forecast for the period 2015-2035. The purpose of this report is to go a step further in the analysis, providing a summary financial evaluation and some deeper insights regarding social and environmental impacts. In addition, this study aims at highlighting the advantages and financial benefits of operating both the Eastern and Western lines together. This report concludes that the rehabilitation of the Eastern Railways can be both economically and financially viable. Evaluation shows also that the project can provide important social benefits with minimum negative environmental impacts. The report recommends that a full feasibility should be carried out on the rehabilitation of the eastern line. Integrated Transport Plan for Ghana Page 1 Volume 12: Pre-Feasibility Study on the Rehabilitation of the Eastern Railway and on Service Final Version Coordination Between the Eastern and the Western Lines Egis Bceom International Contents Chapter 1 Introduction and background.................................................6 1. Overview............................................................................................6 2. Objectives of this study......................................................................7 2.1 Rehabilitation of the Eastern Line ........................................................ 7 2.2 Service Coordination............................................................................ 8 3. Assumptions......................................................................................8 Chapter 2 Economic and Financial Viability.........................................10 1. Traffic potential for eastern railway ..................................................10 1.1 Freight Traffic ..................................................................................... 10 1.2 Passenger traffic ................................................................................ 10 2. Economic Viability............................................................................11 2.1 Central case ....................................................................................... 11 2.2 Sensitivity 1: Costs + 20% ................................................................. 11 2.3 Sensitivity 2: Benefits - 20%............................................................... 11 3. Financial Viability.............................................................................11 Chapter 3 Operational aspects of service re-introduction ..................13 1. Freight operations............................................................................13 2. Passenger operations: potential service pattern...............................14 3. Track and Signalling ........................................................................14 3.1 Track .................................................................................................. 15 3.2 Signalling............................................................................................ 15 4. Project implementation plan.............................................................15 4.1 Staging of Service re-introduction...................................................... 15 4.2 Provision of Rolling Stock .................................................................. 15 Chapter 4 Environmental Impacts.........................................................17 1. Principles and regulatory environment .............................................17 2. Environmental Context.....................................................................17 3. Issues of Environmental Concern ....................................................18 3.1 Encroachments in the Right of Way/Reservation .............................. 18 3.2 Environmentally Sensitive Areas (ESAs) ........................................... 18 3.3 Air Pollution ........................................................................................ 19 3.4 Water Quality ..................................................................................... 20 3.5 Noise and Vibration............................................................................ 20 3.6 Waste management ........................................................................... 21 3.7 Safety and Health............................................................................... 21 3.8 Induced Impacts................................................................................. 22 3.9 Landscape Modification ..................................................................... 22 Integrated Transport Plan for Ghana Page 2 Volume 12: Pre-Feasibility Study on the Rehabilitation of the Eastern Railway and on Service Final Version Coordination Between the Eastern and the Western Lines Egis Bceom International 3.10 Conclusion on Environmental Analysis.............................................. 22 Chapter 5 Social Impacts .......................................................................24 1. Principles and regulatory framework ................................................24 2. Population and economic characteristics of MMDAs traversed by railway line.......................................................................................25 2.1 Population of MMDAs and key communities ..................................... 25 2.2 Major economic activities and products ............................................. 27 2.3 Income and poverty levels ................................................................. 27 3. Social impact of the rehabilitation of eastern railway line and mitigation of negative impact............................................................28 3.1 Positive impacts - construction phase................................................ 28 3.2 Positive impacts - operational phase ................................................. 28 3.3 Negative impacts and mitigation measures ....................................... 32 4. Consultation and public participation................................................32 4.1 Key Stakeholders to be consulted ..................................................... 32 4.2 Role of the MMDAs prior to the project.............................................. 33 Chapter 6 Conclusions and recommendations....................................34 Annexe 1 Notional Container Service Timetable.................................35 Annexe 2 Notional Manganese Train Timetable ..................................37 Annexe 3 Conceptual Limited Stop Passenger Service .....................38 Annexe 4 Stations on the Eastern Line ................................................39 Annexe 5 Key Economic Activities and Products of MMDAs Traversed by Eastern Railway Line .....................................41 Annexe 6 Important Markets in the Catchment Area ..........................43 Annexe 7 Important Schools in the Catchment Area ..........................44 Annexe 8 Project positive impacts .......................................................45 Annexe 9 Project negative impacts ......................................................46 Integrated Transport Plan for Ghana Page 3 Volume 12: Pre-Feasibility Study on the Rehabilitation of the Eastern Railway and on Service Final Version Coordination Between the Eastern and the Western Lines Egis Bceom International List of Tables Table 1: Network conditions and infrastructure 7 Table 2: Traffic potential on eastern line for different commodities for 2015 10 Table 3: GRC rates (USD per ton.km) 12 Table 4: Resources required for proposed train service pattern 14 Table 5: Population of Key Communities in MMDAs Traversed by Railway line 25 Table 6: Poverty Incidence by Administrative Region (in percent) 27 Table 7: Touristic Attractions 31 Integrated Transport Plan for Ghana Page 4 Volume 12: Pre-Feasibility Study on the Rehabilitation of the Eastern Railway and on Service Final Version Coordination Between the Eastern and the Western Lines Egis Bceom International Acronyms and Abbreviations DMU Diesel Multiple Unit EPA Environmental Protection Agency ESAs Environmentally Sensitive Areas GoG Government of Ghana GPRTU Ghana Private Road Transport Union GRC Ghana Railways Company GRDA Ghana Railways Development Authority HIV Human immunodeficiency virus IRR Internal Rate of Return ITP Integrated Transport Plan MMDAs Metropolitan, Municipal and District Assemblies NPV Net Present Value PPP Public Private Partnership PROTOA Progressive Transport drivers Association Integrated Transport Plan for Ghana Page 5 Volume 12: Pre-Feasibility Study on the Rehabilitation of the Eastern Railway and on Service Final Version Coordination Between the Eastern and the Western Lines Egis Bceom International Chapter 1 Introduction and background 1. Overview The Ghana Rail Company’s lines were constructed between the years of 1898 and 1956 and have provided effective coverage across the southern half of the country, which is where the bulk of the country’s industrial activity takes place and where the majority of
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