After PDS debacle: Govt discards restricted tender option

Government would no longer consider the option of seeking private sector participation in the management of the Electricity Company of Ghana using restricted tender, a government official has disclosed.

Nana Damoah, Head of Communications at the Energy Ministry, clarified on TV3’s news analysis programme, The Key Points Saturday, that the restricted tender was introduced by the Finance Minister to prevent the cancellation of the Millennium Challenge Compact.

Finance Minister Ken Ofori-Atta had written to the Millennium Challenge Corporation (MCC) and the Millennium Development Authority to ask permission to initiate new procurement processes to find a new private sector partner to manage electricity distribution in Ghana after it has indicated its intention to cancel the Power Distribution Services (PDS) deal.

“Ghana hereby recommends the adoption by the MCC/MiDA of a restricted tender process to replace PDS,” the October 18 letter signed by Mr Ofori-Atta stated. MCC however rejected government’s plan, calling its decision to cancel the PDS deal “unwarranted”.

Ghana eventually lost $190 million after it went ahead to terminate the ECG concession agreement with PDS against the wish of the Millennium Challenge Corporation.

Former Power Minister, Dr. Kwabena Donkor had counseled the government against restrictive tendering with regards to the ECG concession deal. READ MORE

Mr. Edward Bawa, a member of the Mines and Energy Committee, on the Key Points, also rallied Ghanaians to “kick against” restrictive tendering “with the bloodiest strength in us”.

But Head of Communications at the Energy Ministry stopped him in his track and asked Ghanaians not to worry about that option.

“It is no longer on the table,” Nana Damoah stressed, and asked his colleague panel members to “take it from him” that government would not pursue any restrictive tendering.