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Tema Port Expansion: Meridian Port Services Limited Has Drawn Its First $100 Million From The $667 Million Project Financing Package
Meridian Port Services (MPS) has secured the required financing to execute the Tema Port Expansion Project, 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.
The immediate cash flow need of the USD 1.5 billion port development is USD 1 billion. MPS has signed a USD 667 million project financing package mobilized by IFC from a consortium of development finance institutions and commercial banks, while the MPS shareholders provide the rest of the funding as fresh equity amounting to USD 333 million.
Mohamed Samara, CEO OF Meridian Port Services stated, “The construction works are progressing well and the Commercial go-live on June 28th 2019 remains the target”. Moreover he explained that this USD 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 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 mobilization to date in Sub-Saharan Africa. It includes USD 195 million from the IFC’s own account and USD 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.
