MPS Secures First Tranche Of $667m For Port Expansion

Meridian Port Services (MPS) the company handling the Tema port expansion project has drawn its first $100 million from the $667 million project financing package.

The project thus has received a major boost, as part of moves to enable it to accommodate some of the world’s largest container ships and improve cargo handling services and capacity.

In a statement copied to JoyBusiness, MPS said the funding will enable the development of an ultra-modern state-of-the-art port facility at Ghana’s primary commercial hub, which in addition to serving Ghana, will also expand trade flows and links across West Africa.

The immediate cash flow needed for the $1.5 billion port development is $1 billion, MPS signed a $667 million project financing package, which is to be mobilised by IFC from a consortium of development finance institutions and commercial banks.

But shareholders of the company are also expected to provide the rest of the funding of $333 million as equity.

The port project is a joint venture between Ghana Ports and Harbours Authority (GPHA) APM Terminals and Bolloré Transport & Logistics.

Chief Executive Officer (CEO) of Meridian Port Services, Mohamed Samara, commenting on the funding in a statement said, “The construction works are progressing well and the commercial go-live on June 28, 2019, remains the target.”

According to him, 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 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 and 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.

When completed the improvements at the Tema Port will enhance the port’s competitiveness and position it as a leading maritime hub in the West African region.