Meridian Port Services (MPS) has awarded the contract for the construction of the Tema port expansion project to the China Harbor Engineering Company and AECOM Professional Services (Ghana).

This is after officials of the company secured the required financing to execute the Tema port expansion project.

The immediate cash flow need of the $1.5 billion port development is $1 billion. MPS has signed a $667 million financing package with the International Finance Corporation (IFC), a member of the World Bank group, while the MPS shareholders will provide the rest of the funding as fresh equity amounting to $333 million dollars.

This will enable the development of an ultra-modern state-of-the-art port facility at Ghana’s primary commercial hub.

The project, valued at $1.5 billion, in addition to serving Ghana, will also expand trade flows and links across West Africa.

Mohamed Samara, CEO of MPS, said the project displays the strong commitment of MPS towards improving Ghana’s competitiveness as a preferred destination for international trade and investment.

MPS is executing the project within the GPHA master plan for the development of Tema port, and building upon its success and achievements under the concession agreement that was granted in 2004, resulting in the latest massive expansion of Tema port’s capacity and infrastructure.

The project will allow Tema port to accommodate some of the world’s largest container ships, and improve cargo handling services and capacity. These improvements will enhance the port’s competitiveness, and position it as a leading maritime hub in the West African region.

Ronke Ogunsulire, country manager for IFC, noted that the financing package for the port expansion project will have positive impact on trade and development of the country. She said the financing of the project also represents IFCs largest port investment and biggest infrastructure mobilization to date in sub-Saharan Africa.

Ghana’s Minister of Transport, Fifi Kwetey, said attracting bigger vessels would mean reduced freight costs, with significant savings and a tremendous benefit to the shipping community of Ghana.