ICBC contributes $144.3 million to $667 million syndicated loan for the Tema Port Expansion Project

Project narrative

In 2016, a syndicate of banks (including the IFC, FMO, Bank of China, Standard Bank, and ICBC) signed a $667 million loan agreement with Meridian Port Services Ltd (MPS) — a project company and special purpose vehicle — for the Tema Port Expansion Project. The IFC contributed $195 million and four additional banks (the Bank of China, the Industrial and Commercial Bank of China, the Standard Bank, and the Dutch development bank FMO) contributed $231 million. Fourth different branches of Bank of China (the Shanghai Branch, the Luxembourg branch, the Paris branch, and the Stockholm branch) collectively contributed $231 million to the loan syndicate and ICBC reportedly contributed $144.3 million to the loan syndicate. Meridian Port Services Ltd (MPS) — a joint venture between the Ghana Ports and Harbours Authority (GPHA) and Meridian Port Holdings Limited (a joint venture between APM Terminals and Bolloré Africa Logistics) — is a special purpose vehicle (SPV) that was created for the sole purpose of managing a concession to develop a state-of-the-art container terminal at Ghana’s Tema Port as part of the port's vision of becoming a center of excellence and the port of choice in West Africa. Meridian Port Services Limited is 70% owned by a joint venture between APM Terminals and Bolloré Africa Logistics, and 30% owned by the Ghana Ports and Harbours Authority. The concession agreement grants MPS the exclusive right to stevedore any vessel carrying more than 50 containers and to conduct all shore handling for a period of 20 years. The Tema Port Expansion Project, which is reportedly being financed according to a 68:32 debt-to-equity ratio, involved the dredging of a 19-meter-deep port access channel, the dredging of a new 1.4-kilometer-long quay for four container berths (with a 16 meter draft), and the creation of a 4-kilometer-long breakwater that will enable the expanded Tema Port to accommodate some of the world’s largest container ships and improve cargo-handling services and capacity. These activities were expected to enhance the port’s competitiveness as a leading maritime hub in West Africa. China Harbor Engineering Company and AECOM were the primary contractors responsible for implementation. Construction began on October 1, 2016, and a formal groundbreaking ceremony took place on November 16, 2016. The expanded port was then opened for use on July 3, 2019. The project was officially completed on April 30, 2020.