By Our Reporter
Municipal Metropolitan and District Assemblies (MMDAs) by their recent actions are putting government into serious troubles which could eventually lead to huge judgment debts over the Ghana First’s Clean Ghana Sanitation project.
The MMDAs according to information reaching this paper, are ignoring an Agreement they signed with Ghana First Company Limited when they entered into Public Private Partnership (PPP) arrangement in the execution of the said project.
Investigations conducted into some developments regarding the Project emerged that the MMDAs are claiming they do not have any contract with Ghana First Company Limited for which they (MMDAs) are now playing the ostrich and refusing to ensure that contractors working on the project comply with all necessary arrangements and execute the projects on time.
Meanwhile, documents available to this paper revealed that the Company in 2017, wrote to the Ministry of Local Government and Rural Development of its intention to enter into the PPP Arrangement with them regarding the project.
Ministry of Local Government and Rural Development in turn, wrote to the MMDAs stating that, “The company is proposing to enter into Public Private Partnership (PPP) arrangement with the Metropolitan, Municipal and District Assemblies (MMDAs) and requests to formally engage you in this venture.”
Further, the Ministry of Local Government and Rural Development stated that it had “no objection to the request to engage the MMDAs subject to the laid down procedure for the PPP Programme,” and urged the MMDAs to accord the company the necessary courtesies towards facilitating the ventureship.
Also, in a letter from the Ministry of Sanitation and Water Resources, signed by the Minister, Hon. Joseph Kofi Adda on 29th May, 2017 to all Chief Executives of MMDAs, he informed them of Ghana First Company Limited’s operations and that their facilities are green energy concept with highly efficient technology-based management model.
He indicated that, Features of these facilities include urinals, bathrooms (with shower), laundry, changing rooms using solar energy for electricity, mosquito repellent bulbs and boreholes for regular supply of water, and stated that “I therefore wish to introduce to you Messrs. Ghana First Company Limited and invite you to accord the company your utmost assistance to ensure this laudable project come into fruiting in your district. The Project has the potential of reducing open defecation in our cities and towns and create jobs for our teeming unemployed youth.”
Again, in its Letter of Support, the Ministry of Sanitation and Water Resources said, it had subjected Ghana First Company’s facility to technical and financial reviews and saw that its viability and sustainability is “not in doubt.”
The Ministry then recommended the company for any financial assistance they may require, as financial analysis of the project seems very viable and sustainable in the short to medium term.
After all the introductions are done, Ghana First Company Limited entered into Public Private Partnership (PPP) arrangement with MMDAs when the Ministry of Local Government and Rural Development had expressed its want of objection to the request by Ghana First Company Limited to engage the MMDAs subject to the laid down procedure for the PPP program.
The Ministry requested the MMDAs to accord the company the necessary their utmost assistance to ensure that the Project herein come into fruition in their District.
The Company, Ghana First Company Limited then signed contracts with all MMDAs for the Construction of Clean Ghana Sanitation Facility.
In that Agreement, it was stated clearly in Clauses v that, “the Project Partner shall ensure that the Assembly itself, agents, privies, assigns, servants, workmen whomsoever or otherwise howsoever during the tenure of any government shall not dispossess the Project Owner from its ownership and that no person at law shall take over the property comprised in the project herein either permanent or temporarily and that the project is indemnified against all government interferences. All related legal cost arising out of government interferences shall be borne by the Assembly.”
It went on to state in Clause vi that “the parties herein agree to enter into this project of thirty (30) years during which period the Project Owner will continue to own ninety (90) per centum of the facility built on the land provided by the Project Partner while the Project Partner shall have ten (10) per centum equity.
Also, the parties, which are Ghana First and MMDAs, agreed that upon the expiration of the thirty years, the Project Owner (Ghana First) shall have the first option of renewal for another ten years and “where renewal is denied, ownership of the project is transferred from the Project Owner (Ghana First) to the Project Partner (Assembly).
The Project Owner, according to the Agreement then has the first option of a Management Franchise Agreement with the Project Partner if the Project Partner so desires.
The MMDAs have written to Ghana First Company Limited making their Undertakings regarding their entering into the Agreement.
Meanwhile, it is coming to many people as a surprise why the MMDAs would now turn around claiming not to have any contract with the company.
Below are the Letters written from the Ministries of Local Government And Rural Development and Sanitation And Water Resources requesting the MMDAs to consider the PPP arrangement with the Company.
Ministry of Local Government
And Rural Development
Accra.
9th August, 2017
LETTER OF INTRODUCTION
GHANA FIRST COMPANY LIMITED
Please kindly find attached a self-explanatory request from Ghana First Company Limited.
The company is proposing to enter into Public Private Partnership (PPP) arrangement with the Metropolitan, Municipal and District Assemblies (MMDAs) and requests to formally engage you in this venture.
We have no objection to the request to engage the MMDAs subject to the laid down procedure for the PPP Programme.
You are kindly requested to accord the company the necessary courtesies towards facilitating the venture ship.
Please do not hesitate to contact the Chief Director of this Ministry for clarification or direction.
We count your cooperation.
Signed:
Hon. O. B. Amoah (MP)
Deputy Minister
For: Minister
Cc: The Chief Executive Officer,
Ghana First Company Limited
Ministry of Sanitation &
Water Resources,
29th May, 2017
LETTER OF INTRODUCTION: MESSRS GHANA FIRST COMPANY LIMITED
I wish to inform you that Messrs Ghana First Company Limited, a wholly Ghanaian company, specialized in constructing highly standard ultra-modern public toilet facilities in Ghana to address some of the sanitation challenges like open defecation and urination. These facilities are green energy concept with highly efficient technology-based management model.
2. Features of these facilities include urinals, bathrooms (with shower), laundry, changing rooms using solar energy for electricity, mosquito repellent bulbs and boreholes for regular supply of water.
3. The facilities are appropriate for Lorry stations, Market places, Recreational Parks, Beaches, along the streets, within cities and towns and along the highways connecting the cities and towns.
4. The Ministry of Sanitation and Water Resources has subjected the facility to technical and financial reviews and its viability and sustainability is not in doubt.
5. I therefore wish to introduce to you Messrs. Ghana First Company Limited and invite you to accord the company your utmost assistance to ensure this laudable project come into fruiting in your district. The Project has the potential of reducing open defecation in our cities and towns and create jobs for our teeming unemployed youth.
6. Your cooperation is very much anticipated in this regard.
7. Thank You
Signed:
Hon Joseph Kofi Adda
Minister
To all Metropolitan, Municipal
And District Chief Executives
Ministry of Sanitation
And Water Resources.
29th May, 2017
LETTER OF SUPPORT
I wish to inform you that Messrs Ghana First Company Limited, a wholly Ghanaian company, specialized in constructing highly standard ultra-modern public toilet facilities in Ghana to address some of the sanitation challenges like open defecation and urination. These facilities are green energy concept with highly efficient technology-based management model.
2. Features of these facilities include urinals, bathrooms (with shower), laundry, changing rooms using solar energy for electricity, mosquito repellent bulbs and boreholes for regular supply of water.
3. The facilities are appropriate for Lorry stations, Market places, Recreational Parks, Beaches, along the streets, within cities and towns and along the highways connecting the cities and towns.
4. The Ministry of Sanitation and Water Resources has subjected the facility to technical and financial reviews and its viability and sustainability is not in doubt.
5. I therefore wish to recommend to you Messrs. Ghana First Company Limited for any financial assistance, they may require, as financial analysis of this project seems very viable and sustainable in the short to medium term.
6. Your utmost cooperation is very much anticipated in this regard.
7. Thank You
Signed:
Hon Joseph Kofi Adda
Minister
