Dark clouds over GCCA ground handling bid

Workers of Aviance Ghana Limited, (formerly AFGO), an under-wing and cargo handling business at the Kotoka International Airport have expressed concern over the delay in the release of results of the bid for the selection of a second ground-handling operator by the Ghana Civil Aviation Authority, (GCAA). Even though information reaching this paper attributes the delay to a temporal technical hiccup, the workers feel there is more to it and are in the process of constituting a team to meet the President over the issue. When this paper contacted the GCAA to inquire about the delay it stated that once an announcement is yet to be made, it should be taken that it is still at the tendering process. A document available to Public Agenda suggested that the bidding process had been compromised in favour of Aviance. It stated that the process was also flawed since there was ample proof that the auditors of Aviance were on the panel that did the evaluation and scoring for the granting of a license to an operator. However, another document this paper obtained confirmed that the selection of members of the tender board was made by the GCAA and that following the objection to the presence of the auditors, the tender board was restructured and the tenders re-evaluated. It adds that the Ghana Procurement Board ratified the tender process. But the workers argue that as the results are delayed, the airlines that operate on long-term contract with the service providers at the airport are left in a state of anxiety since Aviance’s operating license was extended for only six months. “Therefore if the license expires, they would have to re-align with the operator that has about a seven-year license. This means about five hundred of us will loose our jobs” stated the workers. On May 8, 2006, the GCAA put out an advertisement inviting tenders for the provision of a second ground handling operator license and warehouse management services. Aviance, alongside five recognized handling companies submitted its bid to the GCAA by the end of June 2006.Aviance Ghana Limited is a Ghanaian registered limited liability company founded in 1990 when the GCAA embarked on a project to improve the general infrastructure at KIA.. Aviance, formerly AFGO limited began operations in 1993 as the sole provider of ground handling services at the KIA and manager of the cargo facility. As at December 31, 2005, since it commenced its operations it has paid to the GCAA on account of $5.850 million rent and $10.270 million royalty. Within the space of 11 years, Aviance is said to have committed over $7 million to equipment and improvements to demonstrate its commitment to the aspirations of the airport authority. Last year when the bidding process began, workers of Aviance expressed fears that their jobs could be at stake as they accuse the Ghana Civil Aviation Authority, (GCAA) of not offering them a fair chance to bid for contract to continue operating at Kotoka International Airport, (KIA). They questioned why a partner offering the same terminal services as Aviance was given preference to be the first operator, while Aviance that has been in the business for twelve years is not recognized.When Public Agenda contacted the management of the GCAA, it explained that new aviation policy calls for a one stop-one-shop for ground handling, which include terminal, ramp and cargo. “To this effect, the terminal handling agreement with Ghana Airline Handling Company, (GHACO), the subsidiary handling company of the national airline wholly owned by government was extended to include ramp and cargo services. The GHACO license is therefore considered as the first of such one-stop-shop license.” The management stated the GHACO license was owned and managed by the liquidator of Ghana Airways Limited. It said the liquidator processed the sale of license through international competitive tender. “AH Menzies who took part in the tender won the bid to purchase the shares of GHACO from the liquidator. AHS Menzies is therefore the operator of the 1st one-stop-shop license issued to GHACO.