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Ghana’s Safebond consortium granted São Tomé port management for 30 years

US$24 million renovation work urgently required; infrastructure minister claims government will ‘reap the benefits’ of new deal.

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US$24 million renovation work urgently required; infrastructure minister claims government will ‘reap the benefits’ of new deal.

ARTICLE BY

PUBLISHED

READING TIME

Less than 1 minute Minutes

UPDATED: 22 Dec 2023, 12:47 am

The São Tomé government has transferred the administration of the Port of São Tomé to the Safebond consortium of Ghana, in a 30-year concession that includes the construction of the deep water port and the requalification of the port of Príncipe.

Infrastructure minister Osvaldo Abreu said that the government will not invest in the port, but will “reap the benefits” contrary to the current state management model.

Safebond plans to invest around US$24 million for urgent requalification of the port and to make it more efficient.

In August, the São Tomé government signed a concession agreement with Safebond for the construction of the deep water port in Fernão Dias, the modernisation and management of the port of Ana Chaves in the capital of São Tomé and the port of Santo António on the island of Prince.

The construction of the port of Fernão Dias has a budget of around US$500 million but the Safebond consortium believes that it will first have to invest in the port of Principe and only later in the deep water port in Fernão Dias.

The São Tomé government will have a 25 per cent share in the new administration of the port, while the consortium will have 75 per cent and will assume all the financial investment.

The Infrastructure minister said that the government will collect gross revenues, through the concept of “royalties” from day one.

The royalties will start at 3 per cent and will grow to 25 per cent over the 30 years of the concession.

 

UPDATED: 22 Dec 2023, 12:47 am

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