Business & Finance

$812M Gas Processing Contract Went through Rigorous Tender Process- Ghana Gas

The Ghana National Gas Company has stated that the Gas Processing Plant Train 2 (GPP2 project) contract was awarded after a rigorous tender process, contrary to claims that it was done hastily with the Chief Executive Officer under pressure.

In a statement by the Head of Corporate Communications, Ernest Kofi Owusu-Bempah Bonsu, the company condemned the allegation in the media space as “misleading”.

It explained that the $812 million project encompassing the Engineering, Procurement, Construction, Commissioning (EPCC) and financing was initiated to process incremental gas flows from the Upstream Partners to meet the rising demand for gas for power generation and industrial use.

“Contrary to the claims made in the Daily Post publication, that the entire process has been shrouded in opacity and corruption, Ghana Gas wishes to state emphatically that the award of the contract for the GPP 2 project to the selected tenderer, went through a rigorous tender process and we have complied strictly with Act 663 of the Public Procurement Act, 2003, as amended, and all relevant approvals have been obtained.

“Indeed, following the approval by the Board of Directors of Ghana Gas in 2021 to commence the GPP 2 project, management applied and sought approval from the Public Procurement Authority (PPA) to adopt the Restricted Tender procurement method under Section 38(a) of Act 663 as amended for the EPCC and financing of the GPP2 project.

“In accordance with the Restricted Tender Procurement method, tenders were submitted by four (4) firms, and upon evaluation of their Technical and Financial bids, by the Entity Tender Committee, the selected tenderer was awarded the Contract following concurrent approval received from the Central Tender Review Committee (CTRC) of the Ministry of Finance.”

The selected tenderer has since signed a Project Implementation Agreement with Ghana Gas to outline the terms and conditions for the EPCC and financing of the project with a special purpose vehicle (SPV) deployed by the former to undertake the project.

Meanwhile, Ghana Gas is currently in negotiations with the SPV to execute the relevant agreements for the implementation of the project, it said.

It added that there is no external influence being exerted on the CEO to execute the agreements as alleged in the media space.


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