Ghana's new ship repair terminal completes $94 million financing
Seetao 2024-06-11 14:09
  • The project is expected to create more than 400 new jobs, more than 15% of which will be reserved for youth and women
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A consortium including the African Development Bank has signed an agreement to provide $94 million in senior debt financing to PMD Assetco Limited for the construction and operation of a floating dock ship repair facility at the Port of Takoradi in western Ghana.

Other members of the consortium include Afreximbank, the Trade and Development Bank for Eastern and Southern Africa and the Petra Pension Plan.

With this milestone, the project has received full commitments from all suppliers for the required $137 million in funding. Upon completion, the facility will house a new 13,500 tonne lifting capacity floating dry dock, 30,000 square metres of reclaimed land, a 200-metre quay, a modern workshop, offices and heavy marine equipment.

Kanayo Awani, Executive Vice President for Intra-African Trade and Export Development at Afreximbank, highlighted the strategic relevance of the project: “The facility’s strategic location will provide world-class repair and maintenance services to shipowners trading within the Gulf of Guinea. As Mandated Lead Arranger, we believe Shiprite will strengthen intra-African trade and promote regional economic growth and integration. By providing services that would otherwise be lost to foreign shipyard repair facilities, the Prime Meridian Docks intervention will retain much-needed foreign exchange on the continent.”

Mike Salawou, Director of the Infrastructure, Cities and Urban Development Department at the African Development Bank, highlighted the socio-economic benefits. “With the project expected to create over 400 new jobs, over 15% of which will be reserved for youth and women, the socio-economic impact of the Shiprite project is a compelling proposition for the Bank”.

Michael Awori, CEO of TDB, said: “TDB is delighted to co-finance Shiprite, a groundbreaking project in West Africa that will improve operational efficiency for shipowners who need maintenance and repair solutions that meet international standards close to them with significant cost and time savings. Shipowners operating in multiple countries in the region sometimes need to travel up to 5,500 km to access the same services. The project will reduce the carbon footprint of shipowner operations, in addition to generating foreign exchange, boosting the local economy, creating jobs and improving infrastructure and logistics for Ghana, which became a TDB member in 2022.”

Chris Hammond, Chairman of the Board of Directors of Petra Advantage Pension Plan and Petra Opportunity Pension Plan, said: “Petra Pension Plan’s involvement in Shiprite represents a groundbreaking move by these pension funds in project finance and infrastructure fund investment. This move supports the diversification agenda of these plans and the wider local pension industry.”

Jobalo, Deputy CEO of ARM-Harith Infrastructure Fund and PMD’s long-term development and equity partner Oshikanlu said: "We are proud to reach this milestone. After years of working with another resilient African sponsor to overcome financing difficulties, this project is expected to be a game-changing infrastructure for the region."

Stanley Raja Korshie Ahorlu, the main sponsor of the project, said: "PMD Assetco is ready to start the construction of civil engineering and floating docks and looks forward to entering the market in time to support shipowners in the region as international shipping strives to reduce greenhouse gas emissions."

PMD is a Ghanaian ship repair company with free zone service enterprise qualifications and a 25-year concession granted by the Ghana Ports and Harbors Authority. The company has benefited from the support of international partners and consultants over the past few years.Editor/Zhao E


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