Ghana: Gov’t To Use Restrictive Tendering To Select PDS’ Replacement

His Excellency Nana Addo Dankwa Akufo-Addo, President of Ghana

The Akufo-Addo-administration in the Republic of Ghana has given indications that it will use restrictive tendering process to select a replacement for the Power Distribution Services (PDS) Ghana Limited.

This is contained in a statement signed by the Finance Minister Ken Ofori-Atta, who also announced the government’s decision to terminate the concession agreement Electricity Company of Ghana (ECG) entered into with the Power Distribution Services (PDS).

With nearly two years for the expiration of Ghana’s Millennium Company II Programme with the US, the government recommended that the Millennium Challenge Corporation (MCC)/Millennium Development Authority (MiDA) use restricted tender process to select the new partner.

According to the statement, the process will be done speedily without compromising the integrity of the procurement process.

“Whilst recognising the prerogative of the MCC in the determination of a particular procurement method in the selection of a PSP, in view of the limited time (approximately two years) until the expiration of the Compact II Programme, Ghana, hereby, recommends the adoption by the MCC/MiDA of a restricted tender process to replace PDS.

“This restricted tender process shall be undertaken timeously by fast-tracking some of the processes without compromising the integrity and transparency of the procurement processes.”

The Government of Ghana, on Friday, October 18, 2019, confirmed’s story published on August 8, 2019, that the government of Ghana has terminated the concession agreement with PDS.

The statement explained that the decision was taken at a meeting in the US on Friday, October 18, 2019, with the Secretary to President Akufo-Addo, Nana Bediatuo Asante, and officials of the Millennium Challenge Compact.

“The current concession had to be terminated in view of the facts uncovered regarding the failure by PDS to satisfy conditions precedent under the relevant transaction documents,” the statement said.

The concession agreement was initially suspended on July 30, 2019, by the government due to what it called “fundamental and material breaches”.

Details of the alleged breach revealed that PDS’ guarantee was irregular and fraudulently procured.

The government came under attack over the development but it rejected accusations that it was negligent in the exercise of its duty to thoroughly scrutinise documents presented by PDS before a final agreement was signed for its concession agreement.

The government constituted a committee to investigate the development and ascertain its nature.

Proceedings from the investigations led to the eventual decision announced in the latest statement.

“Every effort would be employed to ensure a suitable replacement within the relevant timelines in order to complete the Compact,” the statement said.

The government added that it remained committed to seeing private sector participation in the country’s energy sector. “Indeed, the government intends to see this PSP through in a manner that respects due process and fidelity to the relevant transaction documents and underlying Compact.”

Below is the full statement…click on the document to view the full statement



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