80% Ghanaian Companies Fails MiDA Contract Bids - MiDA Boss

Management of the Millennium Development Authority (MiDA), says about 80 percent of Ghanaian companies struggle to win contracts from the authority when they submit proposals to lobby for deals.

The situation, the company feared, could put such companies at disadvantage since procurement processes for contracts for the authority is not limited to Ghana alone, but open to companies from other countries as mentioned by the American government, which sponsors the authority.

Following a request by the authority for qualification for concession, management, operation and investment in the electricity distribution business of ECG, for which submission closed on May 9, 2016, a total of 11 companies were received. ENGIE Energie Services S.A (France), ENEL S.P.A (Italy), Manila Electric Company (Phillipines), Consortium of Eranove S.A, the Quantum Group Limited and CI-Energies (France, Ghana, Ivory Coast), Actis GP LLP (UK), Consortium of CH Group, EDF SA, LMI Holdings and Veolia SA (Ghana/France), Consortium of Sahara Electric Limited, Egbin Power Plc and Ikeja Electricity Distribution Plc (Nigeria), Consortium of the Tata Power Company Limited and CDC Group Plc (UK/India), Butec Utility Services S.A.L (Lebanon), Pallow Ghana Limited (Ghana) and Consortium of BXC Gh Ltd and Shaanxi Regional Electric Power Group (Ghana/China).

Out of the number, only two partially owned Ghanaian companies, Consortium of BXC Gh Ltd and Shaanxi Regional Electric Power Group and Consortium of CH Group, EDF SA, LMI Holdings and Veolia SA, was shortlisted among six other companies but fails to win the contract.

Speaking to the Goldstreet Business at a workshop for prospective bidders on procurement opportunities and procedures for winning contracts at the company, Owura Kwaku Safo, CEO of the authority said, a number of Ghanaian companies usually fail to meet the 80 percent threshold of the authority in order to win contracts.

“What we want to do is to break the whole processes and procedures down; majority of our clients are Ghanaians and so we want companies from this country to win more contracts. We don’t want a situation where companies put in bids several times and cannot win” he said.

He noted that the authority has been on the lookout for consultants, to design and specify data centres for the Electricity Company of Ghana, consultants to detail requirement for geographical information systems, consultants on environmental and social protection, gender and social inclusion and several others.

“It’s one thing knowing your staff as a technical person, but that doesn’t guarantee success when you submit your proposal. With your technical knowledge, you need to know how to submit your proposal and for me, it’s a shame if you have good technical background and yet you can’t present it in a manner to enable you to win contracts” he explained
He disclosed that despite the challenge, Ghanaian companies have won a sizeable number of contracts under the compact I as against companies from other countries and that trend, he said, should be able to continue under compact II.