Meridian Port Services (MPS) has drawn its first $100 million from the $667 million project financing package for the Tema Port Expansion Project.
The money was mobilised by International Finance Corporation (IFC) from a consortium of development finance institutions and commercial banks, enabling the development of an ultra-modern state-of-the-art port facility at Ghana’s primary commercial hub.
The new port facility, in addition to serving Ghana, will also expand trade flows and links across West Africa.
$1 billion immediate cash flow need
The immediate cash flow needed for the $1.5 billion port development is $1 billion.
$667 million IFC financing package
MPS has signed a $667 million project financing package, mobilised by IFC from a consortium of development finance institutions and commercial banks.
MPS shareholders provide $333 million
MPS shareholders would provide the rest of the funding as fresh equity, amounting to $333 million.
Mohamed Samara, Chief Executive Officer (CEO) of Meridian Port Services, stated that “the construction works are progressing well and the commercial go-live on June 28, 2019 remains the target”.
$100 million first drawdown
He explained that this $100 million is the first drawdown from the IFC financing package and follows the fulfilment of the shareholders’ commitment to the project financing.
The port project is a joint venture between Ghana Ports and Harbours Authority (GPHA) APM Terminals and Bolloré Transport & Logistics.
The financing package for the construction of a new port in Tema represents IFC’s largest port investment and biggest infrastructure mobilisation to date in sub-Saharan Africa.
It includes $195 million from the IFC’s own account and $472 million from three commercial banks – the Bank of China, the Industrial and Commercial Bank of China, and Standard Bank, as well as the Dutch development bank FMO.
MPS is executing the project within the GPHA Master Plan for the development of Tema Port, and building upon its success and achievements under the concession agreement that was granted in 2004, resulting in this latest massive expansion of Tema Port’s capacity and infrastructure.
The project will allow Tema Port to accommodate some of the world’s largest container ships and improve cargo handling services and capacity.
These improvements will enhance the port’s competitiveness and position it as a leading maritime hub in the West African region.