TPA Time for a rethink on DAR concession?

Africa Intelligence reports that the TPA has embarked upon what amounts to a selective bidding process for the Dar es Salaam Container Terminal concession with just three companies in the frame for the opportunity as opposed to all eligible bidders worldwide which can be accessed via a full international tender.

The latter course of action is seen as the preferred course of action by such eminent institutions as the World Bank. International Finance Corp and European Bank for Reconstruction and Development. It is also the most employed path to offer such a concession – by a distance. Further, a restricted bidding process, particularly in the African environment, enlarges the scope for accusations of corruption.

Anything that stands outside the norm – a bespoke process or specification – is invariably identified as suspicious activity with a commensurate increase regarding the potential for corruption, particulary if any of the parties involved have ‘previous’ in this respect. Bottom line, a fully transparent international tender process open to all eligible parties, experts agree, is the best path to securing the most efficient operator that will deliver the best result for the terminal’s customers and the country as a whole. Matched against this a more restricted process represents a poor and questionable choice as witnessed by the fact that it is a process that is rarely employed.

The three parties known to currently be engaging with the TPA are Adani Ports and Special Economic Zone Limited (APSEZ), the AD Ports Group and DP World. APSEZ is currently operating the terminal, under a management contract, while long-term operator selection is underway. AD ports Group, via its subsidiary Abu Dhabi Ports PSJC, has recently signed an agreement with Adani to jointly seek out opportunities in Africa. DP World has, according to Africa Intelligence, previously offered to finance the renovation of the port and is well known to be particularly keen on this opportunity.