The Government of Ghana has approved a US$832 million tax waiver granted to Meridian Port Services for the Tema Port expansion project. The total project investment is estimated at US$1.4 billion.
The $832 million tax waiver requested by the Finance Ministry will see Meridian Port Services receiving concessions on VAT, NHIA Levy, Custom duties, Corporate and withholding taxes.
Meridian Port Services (MPS) is the joint venture 70% owned by an effectively 50/50 joint venture between APM Terminals and Bolloré Africa Logistics and 30% owned by the Ghana Ports and Harbours Authority (GPHA).
In November 2014 we published that Meridian Port Services (MPS) signed a Memorandum of Understanding (MOU) with the Government of Ghana for the expansion of Tema Port.
In October 2015, we reported that the International Finance Corporation (IFC) was mulling financing the project. IFC was considering an A loan of up to US$250 million for its own account and would help raise the additional financing needed for the project in the form of parallel and/or B loans.
The project involves the development and operation of a new container terminal in the Port of Tema, approximately 30 km east of Accra. Specifically the expansion project consists of:
- constructing a 700 meter quay for two container berths;
- creating a 70 ha yard;
- constructing a 3.5 kilometer breakwater; and
- dredging up to 16.9 meters.
