INVITATION
The Government of Ghana is fully committed to the divestiture program and accordingly, invites all investors, both local and international, to participate in the programme.

The procedure followed in any particular case will depend on a number of factors, including the mode of divestiture selected. However, where the mode of divestiture is the sale of the assets of a state-owned enterprise (SOE) by competitive tender (which is the most common mode), the procedure will usually be as set out below.

The procedure may appear long and cumbersome. However, it is designed to ensure transparency and integrity in connection with the divestiture of SOEs.

ADVERTISEMENTS
As soon as bid documents have been prepared, the SOE concerned is advertised for sale. At a minimum, advertisements are placed in two leading Ghanaian newspapers each week for three consecutive weeks. Advertisements may also appear in other publications.

The advertisements provide a brief description of the SOE (or part of the SOE) being divested, and indicate the closing date for delivery of bids. This is generally not less than two calendar months after the date of the first advertisement in the Ghanaian newspapers.

OBTAINING BID DOCUMENTS
Investors interested in an advertised SOE should make contact with the person indicated in the advertisement. Subject to their paying the appropriate fee and (if required) signing a confidentiality undertaking, investors are provided with the relevant bid documents. These generally comprise a detailed set of bid procedures, a draft sale and purchase agreement, an information memorandum containing a profile of the SOE and an independent valuation report of the SOE's land and buildings, plant and machinery and other fixed assets.

FORM OF BIDS
Bids from investors must comprise separate qualification statements and price bids. The required contents of each of these are clearly specified in the bid procedures.

Qualification statements usually include, among other things, details about the investor and the investor's business plan for the SOE. The business plan may cover, for example, the investor's plans for the development of the SOE (with regard to both its rehabilitation and expansion) and the investor's intentions with regard to employment.

An investor may be asked to submit a bond to the DIC before negotiations start. The bond is for an amount equal to 10% of the offer price.

INFORMATION ON PRICE
DIC prefers the price offered to be paid in full on completion of the sale and purchase. Bids involving the payment on completion of less than 50% of the price offered or deferred payments due after the third anniversary of completion are not, except in exceptional circumstances, considered.

Deferred consideration should be secured by a guarantee from a bank or other person of sufficient financial standing. DIC may consider, where appropriate, taking security over the assets until full payment is received.

Interest is payable on deferred payments.

DUE DILIGENCE
Investors who wish, prior to submitting their bids, to inspect the SOE's assets, operations and records are usually permitted to carry out a site visit.

DELIVERY OF BIDS
Completed bids must be sealed in two separate envelopes: one envelope will contain the qualification statement, the other the price bid. Bids must be delivered, by hand or post, on or before the closing date stated in the relevant advertisement and bid procedures. Late bids are not accepted.

EVALUATION OF BIDS
A two stage procedure is usually adopted for evaluation of bids received with evaluation of qualification statements being completed prior to any price bids being opened and compared. Price bids from investors who submit unsatisfactory qualification statements are not opened.

In the event of equal price bids, preference is given to bids submitted by Ghanaians. Evaluation of bids is completed, wherever practicable, within one calendar month after the closing date of their submission.

NEGOTIATIONS
The investor who submits the highest confirming price bid opened is invited for negotiation of the draft sale and purchase agreement and discussion of the business plan comprising part of his qualification statement. Negotiations may include the offer price (and, if relevant, the timing of deferred payments).

In the event of negotiations with an investor failing, the investor who submitted the next highest conforming price bid opened may be approached, and so on. An investor may be asked to submit a bond to DIC before negotiations start. The bond is for an amount equal to 10% of the offer price.

APPROVALS AND SIGNATURE
Formal approvals to any divestiture must be sought from, first, the members of DIC and, secondly, the President's Office. The length of the approval process depends on when agreement is reached with the investor, but usually takes about two calendar months.

Upon receipt of the approvals, the sale and purchase agreement is signed, and the assets concerned handed over.