Mahama’s Government to Finance Western Railway Line Without Borrowing

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Finance Minister Dr Cassiel Ato Forson has announced that the government will finance the construction of the Western Corridor Railway Line using petroleum revenues and mineral royalties, pledging not to borrow for the project.

Presenting the 2027 Budget Statement to Parliament on Thursday, November 12, 2026, the Finance Minister disclosed that petroleum revenue accruing to the national budget and mineral royalties would be dedicated to the railway project in 2027 and 2028.

The proposed line will connect Takoradi Harbour in the Western Region through Nsuta and Awaso to the Nyinahin bauxite enclave in the Ashanti Region.

“We will build the Western Corridor Railway line from Takoradi through Nsuta and Awaso to Nyinihin with our own money.”

The announcement places the railway project among the government’s major infrastructure priorities under its financing approach, which seeks to rely on designated domestic revenue sources rather than new borrowing.

Dr Forson explained that the government intends to apply a financing model similar to the one announced for the Accra-Kumasi Expressway, under which the project would be funded without resorting to borrowing

He maintained that petroleum revenues and mineral royalties would provide the resources for the railway construction, with the government proposing to dedicate the specified revenues exclusively to the project over the 2027 and 2028 financial years.

“Just as we pledged for the Accra-Kumasi Expressway, we will not borrow for this important railway project. Our petroleum revenues and mineral royalties will finance this important railway line”.

The proposed arrangement would direct petroleum revenue accruing to the budget and mineral royalties towards the development of the railway corridor rather than using borrowed funds to finance construction.

The Finance Minister’s announcement also signals the government’s intention to use revenue generated from the country’s natural resources to support infrastructure that could facilitate the extraction and transportation of other mineral resources.

The proposed Western Corridor Railway Line will run from Takoradi Harbour through Nsuta and Awaso to Nyinahin, linking the port to the bauxite-producing area in the Ashanti Region.

The route is expected to provide a rail transportation link for minerals that have remained underutilised partly because of inadequate railway infrastructure

Dr Forson identified bauxite and manganese among the resources that could benefit from the development of the corridor, arguing that the railway would help unlock their economic potential.

“While the detailed feasibility, engineering design, costing, and environmental and social studies are ongoing for decades, the lack of adequate railway infrastructure has left much of our bauxite and manganese stranded”.

He added that the railway would create an opportunity to put these mineral resources to productive use for national development and employment. The project is therefore expected to serve not only as a transportation investment but also as an infrastructure link supporting mineral development and related economic activity.

The Finance Minister also disclosed that President John Dramani Mahama, as Commander-in-Chief of the Ghana Armed Forces, had once again tasked the military to secure the right-of-way for the Western Corridor Railway Line.

The directive is intended to support preparations for the project by securing the land corridor required for the proposed railway development.

Dr Forson indicated that feasibility assessments, engineering designs, project costing and environmental and social studies were ongoing. These preparatory processes are expected to inform the technical and financial requirements for the project

The announcement places the military’s role in securing the right-of-way alongside the ongoing technical studies required before construction can proceed. However, the Finance Minister did not provide a specific construction commencement date or disclose the projected total cost of the railway line in the excerpt of the budget speech.

Dr Forson told Parliament that the government would propose the application of the same financing model adopted for the Accra-Kumasi Expressway to the Western Corridor Railway project.

The approach centres on financing major infrastructure through designated domestic revenue sources rather than borrowing. “We will now propose to the House to apply the same financing model for the Accra-Kumasi Expressway for the Western Corridor Railway project,” he stated.

The proposal would make petroleum revenues and mineral royalties the principal funding sources for the railway’s development over the two-year period. The government’s plan links the use of natural resource revenues to the development of infrastructure intended to improve the country’s productive capacity, particularly in the mining and transportation sectors.

With the proposed railway connecting Takoradi Harbour to the Nyinahin bauxite enclave, the government expects the corridor to help address transportation constraints that have limited the utilisation of Ghana’s mineral resources.

The project’s financing proposal, technical studies and right-of-way preparations will therefore be central to its progression towards construction.

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