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Business News of Tuesday, 27 November 2007

Source: GNA

Procurement Act initiates new concepts March 2008

Accra, Nov. 27, GNA - The Public Procurement Authority (PPA) would in March 2008 introduce a new framework concept into the procurement practice that would further place Ghana in the arena of internationally accepted best practices.

The concept, called; "Blanket Purchase Agreement" establishes the general terms governing contracts to be awarded during a giving period in particular with regard to price and where appropriate the quantity envisaged.

Briefing the media on Tuesday at its maiden appearance at the Meet-The-Press Series in Accra, Mr Adjenim Boateng Adjei, Chief Executive Officer of PPA said the agreement would be used basically for filing anticipated repetitive needs for suppliers, services or works. He said: "The Authority hopes that by March it would have started the pilot phase which would go into its regulations and not necessarily through an amendment procedure of the Procurement Act." Dwelling on the rationale for the introduction of the framework, Mr Adjei said: "It would become a vehicle for rationalising the public procurement system that is characterised by fragmentation actions and help minimise administrative costs involve in 'repeat' orders." He said the concept could be applied where there was uncertainty about the actual usage (demand) of a product, which would guarantee the flexibility of increasing or decreasing quantities. In emergency situations, Mr Adjei said the "blanket agreement" would be the ideal framework for contracts because it was a ready avenue for suppliers.

In addition, he said, in collaboration with the Ministry of Finance and Economic Planning, the Authority had proposed the introduction of another framework known as Sustainable Public Procurement (SPP) that would ensure procurement practices which gave value for money. He said the Authority was developing training modules for courses that would be delivered by accredited institutions for varied certifications.

Courses to be introduced include, a three to four year degree programme in procurement and supply chain management in the tertiary institutions.

This, he said, would lead to a combined award of Bachelor of Science Degree and a Graduate Diploma and a Final Level of the Chartered Institute of Purchasing and Supply (CIPS).