THE African Development Bank (AfDB) has granted a $23.04 million loan to Prime Meridian Docks AssetCo Ltd (PMD), a special purpose entity, to co-finance the construction of a state-of-the-art floating dock ship repair facility in Ghana’s Takoradi port. The loan aims to support PMD in designing, building, operating, and maintaining the facility under a 25-year concession granted by the Ghana Ports and Harbours Authority.
With an estimated cost of $137 million, the project entails the construction of a 200-metre jetty, dredging 300,000 cubic meters of rock in the port basin, and the procurement and installation of a 13,500-tonne lift capacity floating dock. The facility will also include offices, a warehouse, mechanical workshops, electrical works, blasting and painting facilities, and equipment maintenance areas.
AfDB has also authorised the syndication of additional financing of up to $11 million on a ‘best efforts basis.’
Mike Salawou, Director for Infrastructure, Cities, and Urban Development of the African Development Bank, emphasised the significance of investing in vessel repair and maintenance, which is an underserved market in Africa. ‘Investing in it will provide a more holistic approach to supporting maritime transport and its sustainability, which will accelerate regional integration and attract international trade and economic activity,’ he said.
Stanley Raja Korshie Ahorlu, the founder and head of PMD, expressed gratitude for the African Development Bank’s approval and facility, noting that it is a testament to their commitment to transforming Africa’s maritime sector.
The African Development Bank’s long-term financing for the project will facilitate the creation of over 400 permanent jobs, with 15 percent of those expected to be filled by women. This represents a significant increase compared to the global average of 2 percent female representation in the maritime sector.
The construction of the floating dock will enhance the resilience of Ghana’s ocean economy and address the carbon footprint resulting from increased vessel flow. The project will promote the use of renewable energy, energy efficiency, and slow vessel steaming, aligning with best practices recommended by the International Maritime Organisation and Ghana’s Nationally Determined Contributions, thus making the project Paris Aligned.
The project aligns with the African Development Bank’s Country Strategy Paper for Ghana (2019-2023) by promoting private sector investment in the real sector. It contributes to job creation, addresses inequality gaps, and supports macroeconomic stability in Ghana, while also incorporating various crosscutting issues into the bank’s interventions.
Furthermore, the project aligns with Ghana’s national ambition to become a hub for shipping and petroleum operations in West Africa. By enhancing maritime maintenance and repair services, the project will reduce transport and logistic costs, improve mobility and connectivity, and enhance Ghana’s competitiveness.
The project will also facilitate skills transfer, as the project’s operator for operations, technical, and commercial management will provide training to staff at its Aberdeen training institute. Additionally, a partnership will be established with the Regional Maritime University in Tema, Ghana, throughout the project’s lifespan to further promote skill development.
