Serious questions are being asked about the recent tender award process for the multipurpose terminal in Luanda.
The recent award of the multi-purpose terminal concession in Luanda, Angola to DP World has been followed by escalating controversy. At the heart of the matter is the contention by other bidders that had the rules governing the tender process been properly followed, and not circumvented, then the result would not have been as declared.
Bids for the multi-purpose terminal, intended to offer a substantial container throughput capacity together with general cargo, were submitted to the Luanda Port Company and the evaluation of the bids undertaken by a Concession Evaluation Committee (CAC), an ad hoc body created to run the tender process and reporting directly to the Ministry of Transport.
It is the results as announced by CAC, and various of its actions in arriving at them, that have been called into question by two of the bidders in particular, Terminal Link, an arm of CMA CGM and International Container Terminal Services Inc (ICTSI).
The bid process was comprehensively and properly prescribed with clear rules laid down on the basis of a multicriteria bid structure – with points awarded for the financial element of the bid and for the technical content, i.e. add-up the points awarded for both elements and the highest score wins.
RULES BROKEN
The contention, however, by Terminal Link and ICTSI is that the ‘rules of engagement’ were not properly followed and basically that alterations, adjustments and supplementary actions were taken by CAC with the aim of promoting DP World into a winning position, which had the rules been properly adhered to it would not have occupied.
Terminal Link, which bid together with the Angolan company Multiparques, wrote to CAC putting on record what it sees to be damaging errors, flaws and incongruities arising from CAC’s actions, not the least of which is that in the final tender evaluation report issued by CAC DP World was ranked third but despite this was declared the winner!
In evaluating the bids submitted by five companies – DP World, ICTSI, Terminal Link & MultiParques, MSC and Sifax Group – CAC issued three reports, a Preliminary Report, a Final Preliminary Report and a Final Report.
In the course of this evaluation process, CAC introduced a cap on the financial offer, a step that prompted official protests from bidders. Effectively, it changed the rules of the game mid-way through the tender process – a highly unusual move – which inevitably drew formal protests from those parties which found themselves disadvantaged as a result.
Also entailing a significant departure from the prescribed tender procedure was the announcement made following the issue of CAC’s Final Preliminary Report that the top three contenders, ICTSI, Terminal Link/Multiparques and DP World, would go through to the negotiation stage. The formal tender procedure clearly stated that only the top two contenders would be given this opportunity.
As might be expected, this too was the source of formal complaints to CAC. On 11 November 2020 CAC issued its Final Report ranking DP World first and ICTSI second – Terminal Link decided to abandon the process. This ranking was given despite the facts showing that the ICTSI’s financial offer was considerably higher than the DPW bid and also recorded a much higher level of investment in the terminal.
LEGAL ACTION
ICTSI has following this chain of events made overtures to CAC and followed this up by initiating legal action in the Supreme Court of Angola. In a recent formal statement, the company emphasises: “ICTSI believes in due process and is seeking the intervention of the Supreme Court of Angola, pleading a review of the tender evaluation in line with the documented terms and conditions of the Request for Proposals.
