MPS makes first $100 million drawdown from $667 million Tema Port project
Meridian Port Services (MPS) has secured the 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.
June 18, 2018: Meridian Port Services (MPS) has secured the 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 $ 1.5 billion port development is $1 billion. MPS has signed a $667 million project financing package arranged by the International Finance Corporation (IFC), a member of the World Bank Group, while the MPS shareholders provide the rest of the funding as fresh equity amounting to $333 million.
Mohamed Samara, CEO of MPS stated, “The construction works are progressing well and the Commercial go-live on June 28, 2019 remains the target”. Moreover, he explained that 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 IFC is the largest global development institution specializing in private sector investment in emerging markets. 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 $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.
Ronke Ogunsulire, IFC Country Manager for Ghana, said, “Improved infrastructure is critical to encouraging trade, economic growth, and job creation. IFC provided significant financing for the Tema Port expansion because it is a good example of how the private sector is playing an important role in development in Ghana.”
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.