MegaProject 565: IFC considers financing Tema Port concession in Ghana
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The International Finance Corporation (IFC) is mulling financing the expansion of Tema Port public private partnership PPP project in Ghana.
The total project investment is estimated at US$1.4 billion. IFC is considering an A loan of up to US$250 million for its own account and will help raise the additional financing needed for the project in the form of parallel and/or B loans.
The project involves the development and operation of a new container terminal in the Port of Tema, approximately 30 km east of Accra. Specifically the expansion project consists of:
- constructing a 700 meter quay for two container berths;
- creating a 70 ha yard;
- constructing a 3.5 kilometer breakwater; and
- dredging up to 16.9 meters.
In November 2014 we reported that Meridian Port Services (MPS) signed a Memorandum of Understanding (MOU) with the Government of Ghana for the expansion of Tema Port. The deal was signed through MPS, a joint venture 70% owned by an effectively 50/50 joint venture between APM Terminals and Bolloré Africa Logistics and 30% owned by the Ghana Ports and Harbours Authority (GPHA).
Previously, in March 2014, the Government of Ghana announced the proposed port upgrade and an expansion program to improve rail and roadway connections and expand capacity. Container throughput at MPS, which handles approximately 80% of Tema's container volume, was 670,000 TEUs in 2013. The expansion will increase the port's annual container throughput capacity to 3.5 million TEUs.
The project will increase Ghana's competitiveness, and drive trade growth by introducing modern efficient container handling capacity to better serve the country's exports and imports at one of the country's key ports. The project will also help reduce the cost of transportation by reducing congestion, improving efficiency and productivity, and therefore benefitting shippers, shipping lines, and consumers alike.
We have recently reported on several ports PPP projects globally:
- Specialized Container Terminal concession at the Port of Manzanillo - Mexico
- Darwin Port lease - Australia
- Beatrix lock PPP project - Netherlands
- IJmuiden sea lock expansion - Netherlands
- São Tomé e Príncipe deep sea port PPP project- São Tomé e Príncipe
- Coal terminal concession in the port of Itaguai - Brazil
- Port of Santos new private use terminal (TUP) - Brazil