Ghana to take full ownership of Tema Shipyard and Drydock

ghanaThe Ghana government plans to take full control of the Tema Shipyard and Drydock. Ghana's Minister of Transport, Alhaji Collins Dauda, announced earlier this week that negotiations are underway between the governments of Malaysia and Ghana for the transfer to Ghana of the 60 percent of the shipyard's equity held by a Malaysian company.

The minister said that the government is "committed to run the facility to the benefit of every Ghanaian" and said  the intention is to find a strategic partner to help transform the shipyard into "a modern and well equipped facility to meet the nation's strategic objectives."

The present Malaysian partner in the venture, Boustead Heavy Industries Corporation Berhad (BHIC) noted in a stock exchange announcement that under a November 8, 1966 Joint Venture Agreement between the Government of Ghana ("JVA")  Penang Shipbuilding and Construction Sdn Bhd, now known as Boustead Penang Shipyard Sdn Bhd ("BPS"), a subsidiary of BHIC, the GoG divested sixty percent (60%) of its interest in Tema Shipyard and Drydock Company Limited ("TSDC"), culminating in the formation of PSC Tema Shipyard Limited ("PSCT").

"Unfortunately," said BHIC yesterday "the goals of the JVA have proven difficult to realize and, in 2010, the GoG initiated action to regain control of the shipyard.

"Numerous and lengthy the negotiations finally reached a deadlock, principally over matters related to shareholding structure and management control," said BHIC, adding that on August 18, 2011a delegation from  the President of Ghana met with the Prime Minister of Malaysia. As a result of this exchange, "it has been recognised by both sides that it is in their mutual interests for the future ownership of the yard to revert to the Republic of Ghana. Accordingly, and in the spirit of South-South co-operation, the parties have agreed to negotiate an outline framework for a structured and well organized transfer to the Republic of Ghana of the entire 60 percent of the shares in PSCT held by BPS."

BHIC says "it is the hope and expectation of both parties that these arrangements will be amicably concluded not later than 31st December, 2011."

September 7, 2011

Want more? Subscribe now!

News from NASDAQ