Tema Port Expansion

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The project concerns the financing of the development, construction and operation of a new container handling terminal (terminal 3) within the Port of Tema in Ghana. The Port is strategically located 30 kilometers away from Accra, Ghana’s capital. The expansion works are will increase the capacity of the port to 3.5 million TEUs per year. The expansion includes a new 1.4-kilometre quay for four container berths with 16-metre draft and a 3.85-km breakwater within a dredged port access channel, 19 metres deep and 250 metres wide to accommodate larger vessels. The project will also come with a railway terminal for the movement of containers by rail to and from the port. The project is being developed by a joint - venture Meridian Port Services ("Project company") which is owned by Bollore Group (35%), APM Terminals (35%) - a Maersk Group company and Ghana Ports and Harbour Authority (30%), a state-controlled entity. In 2013, GPHA launched an international competitive bidding process for the construction of a new Tema port terminal (Terminal 3). Seven bidders qualified for the tender based on construction and operation costs. MPS has been in charge of Tema port for over 10 years under a 20-year concession granted in 2004, and has finalized in June 2015 a concession extension to build the new container terminal. The project is estimated to have achieved financial closure at the beginning of October 2016 since its constriction commencement. The expansion will be carried out in several phases and completed in 2019. Financing comprises debt and equity contributions in 68:32 ratio. IFC provided $250 million from its own account and syndicated the remaining $472 million from Bank of China, FMO, Standard Bank and Industrial & Commercial Bank of China. Equity amounts to $333 million. Hence, the initial investment of $1 billion out of the total estimated $1.5 billion for all phases. https://constructionreviewonline.com/2017/01/tema-port-begins-expansion/ http://www.dredgingtoday.com/2016/09/08/tema-port-expansion-project-about-to-begin/ http://www.aecom.com/projects/tema-port-expansion/ https://ijglobal.com/data/transaction/34990/tema-port-new-container-terminal-ppp The construction commenced at the beginning of October after tying up funds amounting to $667 million from IFC, FMO, Bank of China, Standard Bank and Industrial & Commercial Bank of China, with equity contribution equal to $333 million. Hence, 2/3 of the estimated total investments is available. Further debt collection is expected on a later stage of the construction.