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Six investors shortlisted for Tema Shipyard redevelopment

October 17, 2018
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Six out of 20 investors have been shortlisted to undertake redevelopment of the Tema Shipyard and Dry-dock facility.

The six companies are, Dormac Marine and Engineering Company, Ladol Freezone Enterprise, Secant Technologies, Submarine Holdings Ltd, Strategic Security Systems and Life Forms Ltd.

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A single investor company, will be selected out of the six companies at the end of the process on November 2, to embark on the renovation project.

The redevelopment of the facility, forms part of the industrialization agenda towards the commercialization of the country’s integrated bauxite and aluminum sector and the oil and gas industry.

The Pre-Proposal Conference

Speaking to the Goldstreet Business at the Pre-Proposal Conference for the Selection of a Strategic Investor for the project, Transport Minister, Kwaku Ofori Asiamah said government considers the Shipyard as a strategic national asset and seeks to rehabilitate and upgrade it into a modern facility to benefit the country’s industrialization programme.

The bidding orientation, was to offer opportunities for the shortlisted candidates to seek clarifications on issues regarding the process.

Background

In 1996, Ghana handed over majority shares in the Shipyard to a Malaysian Company, Penang/Boustead upon the discovery of oil and the increase in vessel throughput on the West Coast.

Failure of the Malaysian investors to develop the Shipyard to the required state, pushed government to acquire shares in the company in 2012.

Obsolete and ineffective equipment

Mr. Asiamah however, explained that the Shipyard has not seen any appreciable development in many years as has been saddled with obsolete equipment which hampers efficiency at the port.

Transport Minister, Mr. Kwaku Ofori Asiamah

“I am informed that stage one of the selection process which involved the evaluation of investor qualification statements has been completed. Stage two of the process which is currently ongoing, involves the submission of the detailed proposals from the six shortlisted firms,” Mr. Asiamah said.

The transaction team

A member of the joint transaction advisory team, David Ofosu-Dorte of AB&David said the process will close on November 2, 2018.

“Based on the submissions received on that day, GoG will set up an evaluation team comprising government officials and technical advisers. Recommendations will be made and sent to the Transport Ministry and to cabinet for approval especially if the process ends with the selection of a foreign investor,” he disclosed.

The West Coast of Africa attracts an estimated 5,420 vessels annually, with most of such vessels requiring services offered by the Tema Shipyard.

By Wisdom Jonny-Nuekpe

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