Sole sourcing to be used in awarding stadium contracts

Accra, Sept 1, GNA - Mr Yaw Osafo-Maafo, Minister of Education and Sports has said that government has decided to adopt sole sourcing process in the award of contract for the construction of the three stadiums towards the hosting of the CAN 2008 to save cost. He said government had to take this hard decision because it realised that it could not afford the 299.8 million dollars asking price of the companies that won the bid after selection by the Central Tender Review Board.

Mr Osafo-Maafo who said this at the 'Meet the Press" series said the Evaluation Board's report did not get Cabinet's approval because the financial implications far exceeded the anticipation of the Government and the Ministry.

He said in view of the limited time available for the construction of the stadium, which is approximately 28 months away, Government found it impractical to go through the seven months tender period, hence the decision to use the sole sourcing procedure.

"Under the circumstances, we found it prudent to negotiate contract with a firm with proven capabilities and with a track record with similar experience and most importantly one who can deliver within the limited time frame at a cheaper cost"

"It is in this direction that a high powered government delegation led by me visited the Pudong Yuashen Stadium in China and it was upon our recommendations that government asked for the replication of that particular stadium at the three new venues at almost half the cost submitted during the bidding process".

He said even though the proposed three stadiums at Tamale, Takoradi and Cape Coast will be a replica of the one in China, adjustments will be made to suit specifications of Confederations Of African Football (CAF) and FIFA".

Mr Osafo-Maafo said negotiations are still going on with the group that constructed the Pudong Yuashen Stadium, Messrs Shanghai Construction Group.

He said to ensure that the action is in line with the Public Procurement Act, 2003, Act 663, the Ministry has written to the Public Procurement Board requesting approval for single source procurement arrangement under Act 40 1(b) of the Act.

Mr Osafo-Maafo said the initial discussions with the Shanghai Group, with a total asset of about US$2.84 billion and an annual turnover of over US$3.21 billion confirmed that the group is technically capable of undertaking the projects.

He said under the same procedure, Government would select a new contractor to renovate the Ohene Djan and Baba Yara Sports Stadiums in Accra and Kumasi as quotations from the tendering process for the project were also too high.

Mr Osafo-Maafo said unlike the previous arrangement where the companies that won through the tender process were to pre-finance the project, Government will this time round finance the project which also comes with a 75 room hotel, two restaurants, stores and shops. As to why the stadiums were increased from the initial two to three, the Minister said government upon a suggestion from the Local Organising Committee (LOC) agreed that an additional stadium be added in case the conflict in the North erupts again there will be a spare venue.