Government procurement is one of the most important functions of public administration in Ghana. Every year, central government, ministries, metropolitan assemblies, and state agencies purchase goods, services, and works worth billions of cedis. To ensure fairness, transparency, and value for money, Ghana follows a structured public procurement system guided by the Public Procurement Act, 2003 (Act 663) as amended by Act 914.

This guide by Accra Street Journal breaks down exactly how government procurement works in Ghana—how tenders are created, advertised, evaluated, awarded, and monitored.

1. What Is Public Procurement in Ghana?

Public procurement refers to the process by which government institutions purchase:

• Goods (equipment, machinery, office supplies)

• Works (construction, roads, infrastructure)

• Services (consulting, training, IT services, research)

The purpose is to ensure that public spending is done in a transparent and cost-effective manner.

Procurement is governed by:

• Public Procurement Authority (PPA)

• Public Procurement Act (Act 663, amended by Act 914)

• Entity Tender Committees (ETC)

• Procurement Units within government institutions

2. Why Public Procurement Is Important

Public procurement ensures:

a. Value for Money

Government must get the best quality at the best price.

b. Fair Competition

Every qualified supplier has an opportunity to bid.

c. Transparency & Accountability

Processes are documented, open, and auditable.

d. Control of Public Spending

Procurement helps regulate and monitor how public funds are used.

e. Economic Development

Procurement creates opportunities for local businesses and SMEs.

3. Types of Procurement Methods in Ghana

Procurement can be done through several methods depending on the value and nature of the contract.

**1. Open Competitive Tendering

The most transparent method; open to all eligible bidders.

**2. Restricted Tendering

Used when only a few suppliers can provide the required goods or services.

**3. Request for Quotations (RFQ)

Used for low-value purchases below threshold levels.

**4. Single-Sourced Procurement

Used only under special conditions:

• Urgency

• National security

• Only one supplier available

**5. Framework Agreements

Pre-approved suppliers provide goods/services over a period.

**6. International Competitive Tendering

Used when contracts are large or require foreign expertise.

These methods ensure the right process is used based on the procurement value.

4. Procurement Thresholds in Ghana

Procurement thresholds determine:

• Approval levels

• Tender type

• Evaluation committees

• Advertisement requirements

Thresholds differ for:

• Goods

• Works

• Services

And vary by:

• Ministries

• Departments

• Agencies

• District Assemblies

Larger amounts require approval from the Central Tender Review Committee.

5. Full Step-by-Step Government Procurement Process in Ghana

Below is the standard procurement cycle that every government entity must follow.

Step 1: Needs Identification

The government entity identifies what it needs—goods, services, or construction works.

This includes:

• Justifying the need

• Determining quantity

• Estimating cost

• Checking budget availability

Step 2: Procurement Planning

Every government entity must prepare an Annual Procurement Plan, which outlines all purchases for the year.

The plan is:

• Submitted to PPA

• Approved before implementation

• Used to allocate funds

• A guide for procurement activities

Step 3: Preparation of Specifications & Terms of Reference

Clear and detailed specifications must be prepared, including:

• Technical requirements

• Quality standards

• Delivery timelines

• Evaluation criteria

• Performance expectations

For services, a Terms of Reference (ToR) is prepared.

Step 4: Tendering Process (Solicitation)

The entity invites interested suppliers or contractors through:

• Newspaper adverts

• PPA website

• Entity notice boards

• Online tender portals

The advertisement includes:

• Tender type

• Eligibility requirements

• Submission deadlines

• Bid security (if required)

• Address for submission

Step 5: Bid Submission

Suppliers prepare their proposals according to instructions.

Bids must be:

• Sealed

• Submitted before deadline

• Signed and stamped

• Accompanied by relevant documents

Late bids are not accepted.

Step 6: Bid Opening

On the specified date, bids are opened publicly.

During the bid opening, officials:

• Announce the bidders

• Open all submissions

• Record prices

• Sign opening records

All bidders may attend.

Step 7: Bid Evaluation

The Evaluation Panel reviews all bids using:

1. Preliminary Evaluation

Checks for:

• Valid business registration

• Tax compliance

• Financial capacity

• Bid security

• Complete documentation

2. Technical Evaluation

Assesses:

• Quality

• Capacity

• Experience

• Methodology

• Compliance with specifications

3. Financial Evaluation

Compares prices to determine the most competitive and responsive bid.

Step 8: Tender Committee Approval

The Entity Tender Committee reviews evaluation reports and approves:

• Recommended contractor

• Procurement method

• Contract amount

• Award decision

Large contracts must go to the Central Tender Review Committee (CTRC).

Step 9: Contract Award

Once approved:

• Award letters are sent

• Contract documents are signed

• Unsuccessful bidders are notified

The award is also published for transparency.

Step 10: Contract Performance & Supervision

The government entity monitors:

• Delivery timelines

• Quality of work

• Compliance with contract terms

• Payment milestones

Engineers, consultants, and auditors may participate in monitoring.

Step 11: Payment Processing

Suppliers are paid after meeting contract requirements:

• Invoices checked

• Work verified

• Approval granted

• Funds released

Strict rules reduce corruption and ensure accountability.

Step 12: Audit & Reporting

All procurement activities must be:

• Documented

• Audited by internal/external auditors

• Reported to PPA annually

This ensures transparency and compliance.

6. Rights & Responsibilities of Suppliers

Suppliers have the right to:

• Fair competition

• Clear tender instructions

• Timely feedback

• Appeal procurement decisions

They must also:

• Submit accurate information

• Deliver quality goods/services

• Meet deadlines

• Honour contract terms

7. Common Challenges in Ghana’s Procurement System

Some challenges still exist:

• Delays in payments

• Bureaucratic bottlenecks

• Political influence

• Limited supplier capacity

• Procurement fraud risks

Reforms continue to strengthen transparency and efficiency.

8. Reforms Improving Procurement in Ghana

Key reforms include:

• E-procurement (GHANEPS)

• Stricter monitoring

• Updated thresholds

• Capacity building for officers

• Stronger audit frameworks

These improvements enhance fairness and reduce corruption risks.

FAQs

1. What law governs procurement in Ghana?

The Public Procurement Act, 2003 (Act 663) as amended by Act 914.

2. Who oversees public procurement?

The Public Procurement Authority (PPA).

3. How can suppliers find tenders?

Through newspapers, the PPA website, GHANEPS, and ministry/agency notice boards.

4. What is the most common procurement method?

Open Competitive Tendering.

5. Can suppliers appeal decisions?

Yes. They can use administrative review procedures provided under the law.

Source: Accra Street Journal

Last Updated on December 6, 2025 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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