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The Public Procurement Authority (PPA) has cautioned the Ministry of Finance not to kowtow to the demands of the World Bank to suspend a concession Ghana Ports and Harbours Authority (GPHA) granted to Messers Ibistek Ghana Limited for the expansion of Takoradi Port.

Consequently, PPA has advised the Finance Ministry to write and point out to the World Bank that the cancellation of the concession agreement would evoke severe legal consequences for the state.
This was contained in a letter dated February 5, 2018 and signed by Adjenim Boateng Adjei, Chief Executive of PPA.

The letter was copied to the Vice-President, Finance Minister, Transport Minister, Deputy Ministers of Finance, Chief Director at Ministry of Finance, Chief Director at Ministry of Trade, Director of PID at Ministry of Finance, Director of ERH-M Ministry of Finance, and the Head of World Bank Unit at the Ministry of Finance.

The letter from the PPA was in response to a letter by the Finance Minister, Ken Ofori-Atta, directing GPHA to suspend a $370 million concession agreement granted to Ibistek Ghana for the development of a multi-purpose container terminal at the Takoradi Port in the Western Region.

In the letter, dated December 29, 2017, the Finance Minister instructed GPHA to suspend the contract and re-open a competitive procurement process in respect of the said project.

"You are hereby directed to suspend any prior concession agreements to undertake the above-mentioned project without any cost to GPHA and government and report same to this office", the Minister's letter stated.

The PPA letter stated that parties to the agreement acted in accordance with the laws, procedures and systems which the World Bank itself has supported Ghana over the years.

"I wish, therefore, to advise that the Ministry of Finance should write to explain to the Word Bank that the parties in this matter acted in accordance with the laws, procedures and systems which the bank has supported the state over the years to establish", Adjei indicated in a letter sighted by The Finder.

Due process followed
Mr Adjei, in a letter dated January 5, 2018 to the Minister, averred that the process of awarding the contract under section 40 sub-section 2 of Act 914 was legitimate and in accordance with the law.

"I wish to reiterate this position in reference to a response by the PPA to concerns raised by the World Bank on this matter in a letter dated September 15, 2017, in which the PPA made it clear to the bank that there was no illegality nor circumvention of the processes", the PPA Chief Executive said.

Concession granted in August 2017
The GPHA in August 2017 signed a 25-year concession agreement with Ibistek Ghana Limited for the development of a 61-hectare container and multi-purpose terminal to handle one million 20-footer equivalent units (TEUs) of containers at the Takoradi Port and three million tonnes of general cargo per annum.

Under the agreement, the facility, which would serve as a convergence point to receive imports and transhipment cargo was also to serve as a one-stop shop for all container procedures at the Takoradi Port.

Ibistek as the concessionaire is responsible for the full funding of the project, from the construction of basic infrastructure to utility systems, procurement and installation of cargo handling cranes and equipment, as well as the operation of the terminal.

The project, with funding from the African Development Bank (AfDB), according to the contract information, had proposed to, in addition, develop a container quay of 16 metre draft capable of accommodating bigger vessels and further make the Takoradi Port to become a long-term competitive alternative to the port of Tema.
These processes were completed after a series of communications between the GPHA and the PPA and a subsequent publication of public notices in the September 11, 2017 in the dailies in compliance with the directive of PPA to the GPHA on the procurement processes.

Physical Work
Presently, work on the link roads from the Takoradi Port to the Paa Grant roundabout through New Takoradi, which is being financed by Ibistek as part of conditions of the project, is about 40 per cent completed.

Similarly, the relocation of the Oil Jetty from its present location to a new position near the Dry Bulk Jetty is presently underway to pave way for dredging and reclamation works to begin.