By Jeorge Wilson KINGSON
In view of Ghana’s new status as an oil producing country the government is determining to ensure that the country’s coastlines are well protected for smooth operations of the oil business. To this effect the government under its programme to re-equip the Ghana Navy has received offers from three countries including China, South Korea and Germany for the provision of naval boats to equip the Ghana Navy.
BUSINESSWEEK gathered that subsequently four 46 meter patrol boats will be purchased from China out of which two will be owned by the Fisheries Department of the Ministry of Food and Agriculture but managed by the Ghana Navy. The boats are expected by the end of September 2012.
The government is also considering two 62 meter Fast Patrol Boats from South Korea. These are expected by the end of July 2013. Additionally, there is currently a credit agreement before Parliament seeking the approval of the House of an amount of 30 million Euros between the government and Fidelity Bank Ghana Limited for the financing of the acquisition of two ex German Naval Boats to enhance the capacity of the Ghana Navy.
Terms of the facility include an interest rate of Fidelity Bank Ghana Limited’s base rate of 25.9% minus a margin of two percent per annum, a twelve years grace period, a repayment period of four years, five years maturity period, a 0ne percent flat arrangement fee, a one percent flat participation fee and a 0.50 percent flat processing fee.
The boats under consideration are two 57 meter former German Navy Fast Attack Craft manufactured by Fr. Lurssen WerftGmbh Shaipyards who are also the contractors to refurbish the boats. It was gathered that even though the two boats were commissioned about 3o years ago they have been refitted several times, as such in their present state the propulsion system and hull are in good working conditions.
The weapons, communication and navigation systems which are peculiar to the German Navy have however been removed. It was also gathered that after refurbishment the boats will have extended life of at least 20 years.
The total contract price of the two ex-German boats is €28, 050,000 made up of Basic Price of €17,030,000, and Budgeted Additional Contract Price of €11,020,000. The basic price covers the price of the two ships in their present state, the refurbishment to be done by the manufacturer and the associated basic training for the ship’s crew.
The budgeted additional contract covers the delivery and installation of weapon, inventory and ship spares, transportation of the ships to Ghana, emergent works and the administrative expenses of the project.
The agreement for the supply of these naval boats was approved by parliament in the year 2010 and was to have been financed from government sources. However, due to government’s financial constraints Fidelity Bank was brought in to finance the project with a credit facility.
As to who the other participating financial institutions were, the deputy Minister of Finance and Economic Planning, Fiifi Kwetey told the finance committee of parliament that apart from the lead lender Cal Bank is also participating in the arrangement while discussions are on-going to bring in the Social Security and National Insurance Trust (SSNIT)
Ghana has a coastline of about 537 kilometers long. This coastline lies along the Gulf of Guinea which has vast oil deposits. Exploitation of Ghana’s oil deposits off Cape Three Points has just begun and it is imperative that measures are put in place to protect the oil platforms and other oil offshore installations.
Ghana also has a vibrant fishing and tourism industry which need to be protected from unlawful maritime activities and environmental degradation. The country also has navigational channels traversing its coastal waters which form part of the Gulf of Guinea shipping corridor with vessels visiting its seaports and offshore terminals.
It is against this back drop that it has become necessary for the Ghana Armed Forces, particularly the Ghana Navy to be resourced to be able to defend the country’s maritime domain by monitoring, containing and defeating any maritime security threat that may arise.
In view of Ghana’s new status as an oil producing country the government is determining to ensure that the country’s coastlines are well protected for smooth operations of the oil business. To this effect the government under its programme to re-equip the Ghana Navy has received offers from three countries including China, South Korea and Germany for the provision of naval boats to equip the Ghana Navy.
BUSINESSWEEK gathered that subsequently four 46 meter patrol boats will be purchased from China out of which two will be owned by the Fisheries Department of the Ministry of Food and Agriculture but managed by the Ghana Navy. The boats are expected by the end of September 2012.
The government is also considering two 62 meter Fast Patrol Boats from South Korea. These are expected by the end of July 2013. Additionally, there is currently a credit agreement before Parliament seeking the approval of the House of an amount of 30 million Euros between the government and Fidelity Bank Ghana Limited for the financing of the acquisition of two ex German Naval Boats to enhance the capacity of the Ghana Navy.
Terms of the facility include an interest rate of Fidelity Bank Ghana Limited’s base rate of 25.9% minus a margin of two percent per annum, a twelve years grace period, a repayment period of four years, five years maturity period, a 0ne percent flat arrangement fee, a one percent flat participation fee and a 0.50 percent flat processing fee.
The boats under consideration are two 57 meter former German Navy Fast Attack Craft manufactured by Fr. Lurssen WerftGmbh Shaipyards who are also the contractors to refurbish the boats. It was gathered that even though the two boats were commissioned about 3o years ago they have been refitted several times, as such in their present state the propulsion system and hull are in good working conditions.
The weapons, communication and navigation systems which are peculiar to the German Navy have however been removed. It was also gathered that after refurbishment the boats will have extended life of at least 20 years.
The total contract price of the two ex-German boats is €28, 050,000 made up of Basic Price of €17,030,000, and Budgeted Additional Contract Price of €11,020,000. The basic price covers the price of the two ships in their present state, the refurbishment to be done by the manufacturer and the associated basic training for the ship’s crew.
The budgeted additional contract covers the delivery and installation of weapon, inventory and ship spares, transportation of the ships to Ghana, emergent works and the administrative expenses of the project.
The agreement for the supply of these naval boats was approved by parliament in the year 2010 and was to have been financed from government sources. However, due to government’s financial constraints Fidelity Bank was brought in to finance the project with a credit facility.
As to who the other participating financial institutions were, the deputy Minister of Finance and Economic Planning, Fiifi Kwetey told the finance committee of parliament that apart from the lead lender Cal Bank is also participating in the arrangement while discussions are on-going to bring in the Social Security and National Insurance Trust (SSNIT)
Ghana has a coastline of about 537 kilometers long. This coastline lies along the Gulf of Guinea which has vast oil deposits. Exploitation of Ghana’s oil deposits off Cape Three Points has just begun and it is imperative that measures are put in place to protect the oil platforms and other oil offshore installations.
Ghana also has a vibrant fishing and tourism industry which need to be protected from unlawful maritime activities and environmental degradation. The country also has navigational channels traversing its coastal waters which form part of the Gulf of Guinea shipping corridor with vessels visiting its seaports and offshore terminals.
It is against this back drop that it has become necessary for the Ghana Armed Forces, particularly the Ghana Navy to be resourced to be able to defend the country’s maritime domain by monitoring, containing and defeating any maritime security threat that may arise.
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