Construction works on the $1.5 billion Tema Port expansion project are expected to begin on the 1st October 2016, reports the Ghana Ports & Harbors Authority.
The project, which will enable the development of an ultra-modern state-of-the-art port facility, is set for completion by the 4th quarter of 2019.
The immediate cash flow needed for the 1.5 billion port development is $1 billion.
Meridian Port Services (MPS), the company behind the project, has already secured a $667 million financing package with the International Finance Corporation (IFC), while the MPS shareholders will provide the rest of the funding.
CEO of MPS, Mohamed Samara said: “The project clearly displays the strong commitment of MPS in the drive towards improving Ghana’s competitiveness as a preferred destination for international trade and investment.”
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 the latest massive expansion of the port’s capacity and infrastructure.
Contract for the construction of the Tema Port expansion project has been awarded to the China Harbor Engineering Company (CHEC) and AECOM professional services (Ghana).
According to Ronke Ogunsulire, IFC Country Manager for Ghana, the financing package for the port expansion project will have positive impact on trade and development of the country. “The financing of the project also represents IFCs largest port investment and biggest infrastructure mobilization to date in sub-Saharan Africa.”
It includes $195 million from IFC’s own account and $472 million from three commercial banks – Bank of China, Industrial and Commercial Bank of China, and Standard Bank – as well as the Dutch development bank FMO.
The new container terminal, located 30 kilometers east of Accra, includes an up to 1,000 meter quay, a yard for containers, a new breakwater and new access channel with a deep draft to accommodate some of the world’s biggest container ships.