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Gas company signs contracts against procurement law

The Ghana National Gas Company (GNCG) is reported to have signed three multi-million dollar contract agreements from January 29 to March this year “with no evidence of the contracts being subjected to the country’s procurement laws”, the Daily Graphic has learnt.

The agreements made up of a $15.6 million with AECOM Technology Corporation (AECOM), and a prospecting agreement with Gasol and its local partner, African Power Generation (‘AfGen’), were said to have been signed by the chairman of the GNCG board, Dr Kwesi Botchwey, and the acting Chief Executive Officer (CEO), Mr Eric Yankah, who also serves as a member of the company’s board.

The signing of the agreements would see AECOM begin the construction and engineering management and conduct factory acceptance testing of all critical equipment.

That of Gasol on the other hand was aimed to allow the company do further prospecting of gas from international sources to supply gas to Ghana in the event of a shortfall in supply from jubilee partners when production gets underway.

The third involved an off-taker agreement engaging the services of Quantum Petroleum to build tank farms for Liquefied Petroleum Gas (LPG) and also lift the product from the production point for domestic distribution and export.

A source at the GNCG told the Daily Graphic that the agreements were signed in the absence of the substantive CEO, Dr Sipah Yankey, who was on leave at the time.

But the GNCG board chairman, Dr Botchwey, denied Pat the board signed the agreements without going through the procurement process.

“I am not aware that we signed a contract agreement with AECOM hurriedly without a tender”, Dr Botchwey said.

According to him, the company had never signed any agreement with institutions without strictly complying with the procurement law.

Dr Botchwey said the company only signed a Memorandum of Understanding with AfGen and Quantum to build tank farms and associated infrastructure.

“We began the process because we do not want to wait until production has begun before we do any such thing”, Dr Botwchey stated and added that the MoU was not a contract to commit the board or the company to engage Quantum to lift the product.

Dr Botchwey explained that the MoUs were consistent with the President’s decision to ensure a speedy completion of the infrastructure work on schedule.

Source: Daily Graphic

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Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
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