The African Development Bank’s Board (AfDB) of Directors has granted a loan of $23.04 million to Prime Meridian Docks AssetCo Ltd (PMD), a special purpose entity, to support the construction of a state-of-the-art floating dock ship repair facility in Takoradi port, Ghana.
The loan will enable PMD to design, build, operate, and maintain the facility, which has received a 25-year concession from the Ghana Ports and Harbours Authority.
The total project cost is estimated at $137 million and involves the construction of a 200-meter jetty, dredging 300,000 cubic meters of rock, and procuring a 13,500-tonne lift capacity floating dock.
The facility will encompass various amenities such as offices, a warehouse, mechanical workshops, electrical works, blasting and painting facilities, and equipment maintenance areas. Additionally, the African Development Bank has authorized the syndication of additional financing up to $11 million on a “best efforts basis.”
Mike Salawou, the African Development Bank’s (AfDB) Director for Infrastructure, Cities, and Urban Development, highlighted the significance of investing in vessel repair and maintenance, emphasizing its potential to support maritime transport, regional integration, international trade, and economic activity in Africa.
PMD, led by Stanley Raja Korshie Ahorlu, expressed their satisfaction with the bank’s approval, considering it a validation of their efforts to transform Africa’s maritime sector.
The long-term financing from the African Development Bank will enable the project to create more than 400 permanent jobs, with a target of 15% employment for women, surpassing the global average of 2% in the maritime sector. Furthermore, the construction of the floating dock will bolster Ghana’s ocean economy resilience and address the anticipated increase in vessel flow by promoting renewable energy use, energy efficiency, and slow vessel steaming.
This approach aligns with the best practices of the International Maritime Organization and Ghana’s Nationally Determined Contributions, contributing to the project being Paris Aligned.
The project is in line with the African Development Bank’s Country Strategy Paper for Ghana (2019-2023), aiming to increase private sector investment in the real sector. It will facilitate job creation, reduce inequality, enhance macroeconomic stability, and integrate various crosscutting issues into the bank’s interventions. Moreover, the project supports Ghana’s ambition to become a regional hub for shipping and petroleum operations in West Africa. By improving maritime maintenance and repair services, it will reduce transportation and logistic costs, enhance mobility and connectivity, and boost Ghana’s competitiveness.
A significant outcome of the project is skills transfer, as the project’s operator will provide training to staff at its Aberdeen training institute and establish a partnership with the Regional Maritime University in Tema, Ghana, throughout the project’s duration.
Source – myjoyonline.com
