US$200 million needed to resuscitate operations of Tema Shipyard

 

Director General of the Ghana Ports and Harbours Authority (GPHA), Michael Luguje has disclosed that an investment capital of $200 million is needed to revamp the PSC Tema Shipyard.

The Shipyard, which operates as a separate entity was handed over to the GPHA to manage, operate, and attract investors into the shipbuilding activity

Mr Luguje said the Shipyard, which was originally part of the Tema Port project, was separated and had gone through a lot of phases before the government handed it over to the GPHA to prepare it and look for a strategic partner to invest in it.

The GPHA Director General told the Ghana News Agency in Tema that in 2017, GPHA started to retool the Shipyard as it bought some equipment to make it attractive to investors.

He noted that as the biggest shipyard in Central and West Africa, up to $200 million was needed to modernize it.

He explained that the GPHA still supported the operations of the Shipyard as there was a lot of prospects for it and stressed that retooling could be gradual.

Mr Luguje said: “The way the Shipyard is now; it cannot borrow even up to $10 million on its own therefore investors are needed. The GPHA was also not in a position to borrow more since it has invested a lot into the Tema and Takoradi Ports.”

KETA PORT PROJECT

The Ghana Ports and Harbours Authority (GPHA) has reaffirmed its determination to build the Keta Port and said it will deliver to the expectation of the public.

GPHA Director-General, Mr Michael Luguje, describes the what has become known as a ‘white elephant’ and a drain on the public purse as a strategic project of the state.

He explained that the necessary procedures required for building such a facility are being followed followed to the letter.

“Building a port is a meticulous process, it has a life cycle, which includes feasibility studies and analysis before the actual construction, and an Executive Instrument must be signed by the President,” he said.

Mr Luguje said a lot of progress had been made including feasibility studies, stakeholder engagements, and an environmental assessment.

An advert for the expression of interest had also been published and a number of proposals received, which had been reviewed to select the best options.

He justified the appointment of the Director of the Keta Port as necessary to coordinate all the processes needed to get the construction underway.

Mr Luguje said the management of GPHA would not be pressurised into rushing the construction roadmap, adding; “It took about 10 years to get the Tema Port constructed.”

“The Tema Port was constructed small and expanded with time. We don’t have to rush the Keta Port project, there is the need to go through all the processes”.

The Keta port, which would be the third seaport in Ghana after the Tema and Takoradi ports, has received public bashing after the appointment of a director even though actual construction was yet to take off.