Afreximbank approves US$50m for Prime Meridian Docks
The Executive Committee of the Board of Directors of African Export-Import Bank (Afreximbank) in Cairo has approved senior debt funding of US$50million for Prime Meridian Docks Ghana Ltd. (PMD). This is to form part of a US$75million syndicated project-finance facility for the company’s maritime infrastructure project.
The funding is to support PMD build and operate a world-class ship repair and maintenance facility in Port Takoradi under a 25-year concession granted the company by Ghana Ports and Harbours Authority (GPHA). The project when completed will comprise some 30,000 sq. metres of paved laydown area; a 200-metre jetty; modern workshops, offices; heavy marine equipment and a newbuild 13,500t lift-capacity handy-max size floating drydock. The ship repair facility when fully operational will create over 500 new jobs and positively impact the local and regional maritime economies.
According to the Project Coordinator, Maria Ogbugo, the company is finalising its engagements with other lenders – including African Development Bank (AFDB) and UMB Bank, as well as its equity partners, ARM Harith Infrastructure Fund and Stratcon Capital – to conclude the US$137million fundraiser and commence construction in Q4 2022. Civil and marine components of the infrastructure are to be constructed by China Harbour Engineering Company (CHEC) and Keppel Nantong respectively.
PMD is a Ghanaian company founded and headed by Mr. Stanley Raja Korshie Ahorlu, sponsor of the project. While developing the project over the past seven years, the company has benefitted from the support of an impressive list of international blue-chip partners, clients and advisers: such as Rigmar Services UK, LiquidAfrica, Trinity International LLP, N. Dowuona & Company, Watson Farley & Williams, Mott Macdonald, Royal Haskoning DHV, EY, KPMG, Sellhorn Ingenieurgesellschaft mbH, SAL Consult, Maersk Drilling (now Noble Drilling), Valaris PLC, Stena Drilling, DOF Subsea, Swire Pacific (now Tidewater), Manteniship and Banchero Costa.
Mr. Ahorlu views the US$50million Afreximbank facility as “a significant breakthrough resulting from our years of belief, value creation, resilience and partnerships”.
Mr. Ernest Nyarko of ARM Harith on his part calls it “a major leap forward for the project”, while Mr. Keith Nelson, CEO-Rigmar refers to it as “our long-awaited and very well-deserved achievement”.