AfDB approves $23.04 million loan for Ghana’s Takoradi Sea Port

A $23.04 million loan to Prime Meridian Docks AssetCo Ltd (PMD), a special purpose organization, has been approved by the African Development Bank’s board of directors in order to co-finance the development of a cutting-edge floating dock ship repair facility in Ghana’s western Takoradi port.

Under the terms of a 25-year concession granted to the company by the Ghana Ports and Harbours Authority, the loan will assist the company in designing, constructing, operating, and maintaining a top-notch ship repair and maintenance facility in the Gulf of Guinea.

Construction of a 200-meter jetty, 300,000 cubic meters of rock removal from the port basin, and the acquisition and installation of a floating dock with a 13,500-ton lift capability are all part of the project, which is expected to cost $137 million. Additionally, the building will have administrative spaces, a warehouse, and mechanical workshops for the fabrication of steel and pipes, electrical work, blasting and painting, and equipment maintenance.

The Board also approved the “best efforts basis” syndication of up to $11 million in further finance.

“Vessel repair and maintenance is an underserved market on the continent,” stated Mike Salawou, Director for Infrastructure, Cities and Urban Development at the African Development Bank, in response to the clearance. By making an investment in it, we can assist maritime transport more comprehensively and ensure its sustainability, which will hasten regional integration and draw in global trade and economic activity.

The project’s sponsor, Mr. Stanley Raja Korshie Ahorlu, founded and serves as CEO of the Ghanaian business PMD. The approval and facility from the African Development Bank are the “culmination of many years of dedication and commitment and an endorsement of PMD’s drive to transform Africa’s maritime sector,” according to Ahorlu.

With the help of long-term hard currency financing from the African Development Bank, the project will be able to generate around 400 permanent jobs, 15% of which are anticipated to be held by women. This is a lot higher than the maritime industry’s 2% global average.

By increasing the use of renewable energy, energy efficiency, and slow vessel steaming, the development of the floating dock will improve Ghana’s maritime economy’s resilience while reducing the carbon footprint left by an anticipated increase in vessel flow. The project is Paris Aligned because it complies with the International Maritime Organization’s best practices and Ghana’s Nationally Determined Contributions.

To enhance private sector investment in the real estate industry, the initiative is in line with Ghana’s Country Strategy Paper (2019-2023) from the African Development Bank. While mainstreaming numerous cross-cutting concerns into the bank’s actions, it helps Ghana achieve macroeconomic stability, create jobs, and close inequality gaps.

The project also supports Ghana’s national goal of developing into a hub for oil and shipping operations in West Africa. The project will assist reduce transportation and logistical costs and time, resulting in enhanced mobility and connectivity and promoting Ghana’s competitiveness. By improving the supply of maritime maintenance and repair services.

One key development result of the initiative is the transfer of skills. The operations/technical and commercial management operator for the project will train workers at its training facility in Aberdeen, and a collaboration will be established with the Regional Maritime University in Tema, Ghana, over the course of the project.