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AfDB approves $23M loan for Ghana ship repair facility

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Prime Meridian Docks AssetCo has secured a loan to the tune of $23.04 million (Ksh 2.78b) for the construction of a ship repair facility in Ghana’s Tokodi port.

The approval by the African Development Bank (AfDB) board will see the special purpose firm design, build, operate and maintain a world-class ship repair and maintenance facility in the Gulf of Guinea under a 25-year concession granted to the company by the Ghana Ports and Harbours Authority.

The facility whose total cost is $137 million (Ksh 19b) will see PMD construct a 200-meter jetty, dredging of 300,000 cubic meters of rock in the port basin, and procuring and installing a 13,500-tonne lift capacity floating dock.

“Vessel repair and maintenance is an underserved market on the continent. 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,” said Mike Salawou, AfDB Director for Infrastructure, Cities and Urban Development.

Upon completion, the modern floating dock will offices, a warehouse, mechanical workshops for steel and pipe fabrication, electrical works, blasting and painting, and equipment maintenance, AfDB said.

At least 400 permanent jobs are to be created from the project, 15pc of which are expected to go to women. This is significantly above the global average of 2pc in the maritime sector.

The Board also authorized the syndication, on a “best efforts basis”, of additional financing of up to $11 million.