PPA must reject single-sourcing arrangement for TOR – Torentco deal - IMANI

Policy think-tank, IMANI Africa, has called on the Public Procurement Authority (PPA) to reject the single-sourcing arrangement for the proposed lease deal between the Tema Oil Refinery and Torentco Assessment Management (TAM).

In an assessment report of the proposed deal, IMANI wants the PPA to rather call for open and competitive bidding that guarantees sole-sourcing of the agreement.

“Private participation will be essential to revive TOR but only if the private investors have serious capacity. Only a consortium with solid players that can supply working capital, crude and technical expertise must be brought on board," IMANI proposed.

IMANI added that the bidding terms of Reference or Memorandum must, therefore, provide the needed clarity before any deal is approved.

“For investors to come on board, political risk and adverse legacy problems must be cleared,” the think-tank said.

The assessment report further urged government to strengthen the legal basis of price deregulation and ensure that all board and management appointments, recruitment at TOR are on the basis of transparency and competitiveness.

“The Board and Management of TOR must also apply the special energy taxes, levies and their true objectives, which include clearing TOR’s debts. TOR must be positioned for listing on the public markets to eliminate political cronyism once and for all,” IMANI stressed.

In conclusion, IMANI Africa said TOR’s senior management and workers must be granted their secondment contracts as promised by Torentco Asset Management.

“Any solution must look at the plight of all workers at TOR and not just senior management,” the report concluded.

About the Tema Oil Refinery-Torentco deal

In a significant move for Ghana’s oil industry, Tema Oil Refinery (TOR) has recently sought approval from Ghana’s Public Procurement Authority (PPA) to lease its main production assets to a company called Torentco Asset Management.

The proposal involves leasing TOR’s primary production assets to Torentco Asset Management, which would assume control of TOR’s core refining operations for a period of six (6) years.

Under this agreement, Torentco would have the authority to refine up to 8 million barrels of oil annually, paying an annual rent of $1 million.

Following some details of the proposed deal, checks have indicated that Torentco Asset Management (TAM) has no online presence, raising questions of a 'shady' deal by government.

Meanwhile, TAM will also pay $0.5 for each extra barrel if it refines more than 8 million barrels under the deal.

MA/FNOQ