4 September 2008
As the Inter-ministerial concession committee (IMCC) is poised to release its findings for the bidding process for the Forest Management Contract (FMC) for Area Three in Gbapolu and Lofa Counties, concerns are mounting as to who wins the bid.
However, while the IMCC is yet to make public its findings, this paper has learnt that the result is likely to be in favor of Alpha Logging, one of the three bidders. Alpha Logging and Global Wood are said to be the two frontrunners.
IMCC is a nine-member committee comprising the ministries of Finance, Labor, Land & Mines, Agriculture, Internal Affairs, the Forestry Development Authority, National Investment Commission, Civil Society, as well as others and is responsible to vet companies wanting to do business in the mining and forest industries in the country.
For the past months, the IMCC has been evaluating companies that have bided for the FMC, and has reportedly completed its work, and set to release it as soon as possible.
Six companies reportedly applied, out of which three dropped for unexplained reasons, leaving the competition among three companies. Of the three, it is also gathered that, at least, two companies (Alhpa and Global Wood) were in contention, having met, to some extent, requirements set aside.
Though there is no time tag given, the pending release of the findings is pursuant to the conduct of "Due Diligence" by the Bidding Evaluation Panel (BEP) and subsequent submission of its work, as required, to the IMCC.
However, this paper has gathered that following the conduct of due diligence, the BEP acknowledged Global Wood as provisional winner because the company is said to have the capability, in terms of equipment, and efficiency, in terms of manpower and office, to get started, unlike its competitor, which reportedly has no equipment on the ground to begin with.
However, if reports filtering into our offices are anything to go by, then Alpha Logging, which capacity is low will be announced winner of the bid ahead of Global Wood, which is said to be equipped for the contract.
Meanwhile, it is gathered that the decision to announce Alpha Logging as winner of the bid for the FMC is being opposed by some members of the IMCC on grounds that the company falls below the requirement line.
It is not known why some members of the IMMC allegedly changed the reported decision of the BEP, acknowledging Global Wood as provisional winner overnight, but unconfirmed reports have it that there is a "foul play."
However, the Chairman of the National Investment Commission (NIC), Richard Tolbert could not confirm as to whether Alpha Logging is the winner of the bid, but said the process was genuine and that there was "no foul play."
Speaking to this paper on the issue via mobile phone yesterday, the NIC boss, who is a member of the IMCC said Alpha Logging met the requirement for a capital of US$15, compared to its rival, Global Wood, which has close to US$3 million.
According to him, Forestry Development Authority (FDA) informed them that the FMC, which is about 119,000 hectares, valued US$15 million, and that Alpha Logging capital is four times more than that of Global Wood.
That besides, he said the process was fair because "about six ministers voted, except for one person did not vote." Commenting on the issue of "Due Diligence," the NIC boss told this paper that the Bidding Evaluation Panel (BEP) did not do any "due diligence," but was told to do that..
However, he did not say whether they waited for the BEP to submit its final report before the IMCC took the final decision. Investigation continues.
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