The Finance Minister, Ken Ofori-Atta, on behalf of government, has endorsed the concession agreement between the Ghana Ports and Habours Authority (GPHA) and local firm IBISTEK Ghana Ltd. for the development and operation of an on-dock container multi-purpose terminal at the Takoradi Port.
This was contained in a letter dated May 11, 2018, signed by the Finance Minister and addressed to Director General of the GPHA, Mr. Paul Ansah.
Stakeholders such as the Office of the Vice President, Ministry of Transport, Ministry of Trade and Industry, and the CEO of PPA among others were all copied in the said letter.
“You can therefore proceed to undertake the necessary actions that give effect to the Concession Agreement between GPHA and IBISTEK Limited for development of the On-Dock Container and Multi-Purpose Terminal Project,” a portion of the letter read.
The endorsement comes after Mr. Ofori-Atta is said to have received approval from the Public Procurement Authority (PPA) that the procurement process followed by the Ghana Ports and Harbours Authority in granting the concession to IBISTEK fully complied with the Public Procurement Act, 2003 (Act 663) as Amended.
Mr. Ofori-Atta noted that in endorsing the concession arrangement, it took notice of the following recommendation contained in an earlier letter from the PPA dated April 6, 2018, advising that: “We wish to recommend to the Hon. Minister that the capital cost provided by the Concessionaire for the Port Terminal Project be accepted and the suspension on implementation reconsidered and lifted.
“The development of the On-Dock Container Multi-Purpose Terminal is an integral part of implementing the Master Plan for the Takoradi Port Expansion Project.”
He further stated: “The proposed project is expected to make a positive impact nationally and locally for the Sekondi-Takoradi Municipality”.
The On-Dock Multipurpose Terminal, which will be developed by IBISTEK Ghana Limited, also has a container quay of 16-metre draft capable of accommodating bigger vessels and further make Takoradi Port a long-term competitive alternative to Tema Port.
GPHA-IBISTEK 25-years concession
Ghanaian investment firm IBISTEK Ghana Limited announced plans last year that it was to build and operate a multi-purpose on-dock terminal that would help drive traffic to the country’s export-based Takoradi Port.
Construction of the terminal is expected to shore-up the cargo throughput capacity of Takoradi Port to about one million total enclosed units (TEUs) from the current average of about 63,000.
It said the deal, which spans a period of 25 years, aligns with the GPHA’s Master Plan to develop and reposition the port to meet increasing demand and create much-needed jobs.
In August 2017, the GPHA signed a 25-year concession agreement with IBISTEK Ghana Limited for the development of a 61-hectare on-dock container multi-purpose terminal to handle one million 20-footer equivalent units (TEUs) of containers at Takoradi Port, and three million tonnes of general cargo per annum.