Home / Ghana Politics / Ghana Secures Funding for New Ship Repair Dock with $94 Million Syndicated Loan

Ghana Secures Funding for New Ship Repair Dock with $94 Million Syndicated Loan

On June 4, 2024, a consortium, including the African Development Bank, signed a $94 million senior debt funding agreement with PMD Assetco Limited (PMD) for a floating dock ship repair facility in Takoradi port, Ghana.

The consortium also includes the African Export-Import Bank (Afreximbank), the Eastern and Southern African Trade and Development Bank (TDB), and Petra Pension Schemes. This agreement ensures the project, known as “Shiprite,” reaches the full $137 million needed for completion. The facility will feature a 13,500-ton lift-capacity floating drydock, 30,000 square meters of reclaimed land, a 200-meter jetty, a modern workshop, offices, and heavy marine equipment.

Kanayo Awani, Executive Vice President of Afreximbank, stressed the project’s strategic value, stating, “The location will provide world-class repair services for vessels trading in the Gulf of Guinea. As the Mandated Lead Arranger, we believe Shiprite will boost intra-African trade and regional economic growth. This project will retain foreign currency that would otherwise be spent on overseas shipyard repairs.”

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Mike Salawou, Director for Infrastructure, Cities, and Urban Development at the African Development Bank, highlighted the socio-economic benefits, noting, “Over 400 jobs will be created, with more than 15% reserved for youth and women, making the project a significant socio-economic proposition for the Bank.”

Michael Awori, Chief Executive of TDB, said, “TDB is pleased to co-finance Project Shiprite, which will offer cost and time savings for shipowners needing maintenance and repair services. This will enhance operational efficiency and reduce the carbon footprint of ship operations. The project will also generate forex, boost the local economy, create jobs, and improve infrastructure in Ghana.”

Chris Hammond, Chairman of the Boards of Petra Pension Schemes, added, “Petra Pension Schemes’ involvement in Project Shiprite marks a pioneering investment move into Project Finance and Infrastructure. This aligns with the broader diversification agenda of the schemes and the local pensions industry.”

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Jobalo Oshikanlu, Deputy CEO of ARM-Harith Infrastructure Fund, PMD’s equity partner, stated, “We are proud to have reached this milestone, overcoming bankability challenges with another resilient African sponsor. This infrastructure will be transformative for the region.”

Stanley Raja Korshie Ahorlu, the project’s Lead Sponsor, affirmed, “PMD Assetco is ready to start construction and support regional shipowners as international shipping moves towards reducing greenhouse gas emissions.”

PMD, a Ghanaian ship repair company with Free Zones Service Enterprise status and a 25-year concession from the Ghana Ports and Harbours Authority, has received support from international partners and advisers over the years.

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