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The Government of Ghana has signed the Sales and Purchase Agreement, which would finally transfer to Ghana the entire 60 per cent shares of PSC Tema Shipyard, which has been held for over 13 years by Penang Shipbuilding. The Minister for Transport, Alhaji Collins Dauda, together with the transitional team, signed the agreement during a brief ceremony at the premise of the shipyard in Tema to ensure the total ownership of the yard by Ghana. According to the Transport Minister, Cabinet on May 11, 2012 approved an amount of $6.36 million to be paid to Penang upon the advice of the Government of Ghana�s negotiating team. 60 per cent share transfer which was 5.12 million dollars and a discounted Inter-Company Payables of 1.240 million dollars. Giving the rationale behind the building and divestiture of the yard some 13 years ago, the minister said the Tema Shipyard and Dry-Dock Corporation was built during the construction of the Tema Harbour as part of the overall infrastructure requirement for the country�s maritime industry and socio-economic development. He added that government in the mid-1990s sought a strategic investor to help improve the standard of operations of the shipyard, enhance its efficiency and to make it contribute effectively to the national economy. The minister stated in 1996 government accordingly divested 60 per cent of its interest in the Tema Shipyard and Dry-dock Corporation as part of measures aimed at improving the standard of operations in the shipyard. He said the divestiture of the facility by government of Ghana at the time was to acquire a strategic partner to help transform the shipyard into a modern, well-equipped facility to meet the nation�s strategic objectives. According to Mr Dauda, government therefore executed an agreement with Penang Shipbuilding and Construction SDN BHD on November 8, 1996 as its partner and in the agreement Penang was to rehabilitate the yard as well as procure funding. Unfortunately after 13 years, this important vision had not been achieved and the goals of Joint Venture Agreement have not been met,� he added, stating that following some agitation from various quarters on the state of the Tema Shipyard, a committee of Inquiry, headed by Chris A-Ackummey was set up in 2009 to investigate its operations and make recommendations. He mentioned that the committee affirmed the strategic importance of the shipyard, among others and recommended that government should initiate action to regain control of the yard. According to him, the NDC government began the process of negotiation to increase the nation�s stake in the ownership of the shipyard when it assumed power in 2009. He added that government took into consideration the good relationship with Malaysia, the spirit of South-South cooperation and the intervention the President of Ghana and Prime Minister of Malaysia and decided to take a dispassionate approach. He added that these economic opportunities had enhanced the shipyard�s economic viability which would accelerate the �Better Ghana� agenda. The Chief Executive Officer (CEO) of the Tema shipyard, Seth Kugblenu, said together with the rest of the team they would work to transform the yard to serve its economic purposes.