Monrovia – The hassle, which characterized the introduction of new vehicle license plates in Liberia that led to problems wherein many instances drivers paid and could not get their plates on time and others who also renewed are yet to get their stickers for 2016, looks to be gradually creeping in the process, leading to the bidding and evaluation process for companies to produce driver’s license for all drivers in the country.
Issues dogging the entire process include the shortlisting of Inkript/SGS which, according to some privileged individuals closely monitoring the bidding process, failed to meet the criteria set by the Transport Ministry and the replacement of Oliver Rogers of the Liberia Revenue Authority as Chairman of the Evaluation Committee without explanation for such decision when the evaluation process is already ongoing is raising eyebrows.
Effective procurement is a major problem in Liberia as there are prevalent waves of procurement related fraud and shortcomings.
Rehabilitation work for the Roberts International Airport, the only international airport in the country, is currently at a standstill over procurement related obstacles. Bidding process for award of contracts for many other projects in Liberia including construction and others are normally characterized by reports of illegal wheeling and dealing during the bid evaluation process.
FrontPageAfrica has gathered that four companies submitted bid for the contract to produce driver’s license: Face Technology (FT), Cetis in collaboration with Mwantana, Vivien Jones and Techno Brain Limited (TBL).
Some of the requirements set forth by the Ministry of Transport, one of which provides for companies bidding to have three sites in Africa that have been in operations for at least three years, might lead to two of the four companies being disqualified for the project.
During due diligence on the three bidders, FPA has leant that Face Technologies has reference sites in Africa and other countries including South Africa, Sri-Lanka, Namibia, Uganda, Mozambique, Malawi and Zambia but these sites have been placed.
One of the other bidders, Cectis & Mwetana provided reference cites in Slovenia, Sudan, Somalia, Guinea Bissau, Burundi, Honduras, Gambia, Madagascar but due diligence found out that projects in most of these countries are the production of passports.
Another bidder, Inkript/SGS provided references in Lebanon, Ivory Coast and the Democratic Republic of Congo. In Lebanon, the company is mostly involved in printing press and its project in that country has not gone live which makes the company unable to meet the three years requirement set by the Ministry of Transport.
In the Ivory Coast, Inkript/SGS runs a vehicle inspection system which is not within the scope of the Ministry of Transport project.
The other bidder, TBL has reference performance in Malawi, Ethiopia, Malawi and Tanzania
Due Diligence issues
Sources have hinted that the selection of the bid evaluation committee and the process leading to their selection is raising eyebrow especially when Oliver Rogers of the Liberia Revenue Authority was relieved as Chairman of the Evaluation Committee and replaced without explanation for such decision when the evaluation process is already ongoing.
Rogers is said to have been replaced with Daniel Johnson, who is believed to be an assistant to the Minister, as Chairman of the evaluation committee.
Another sticky issue dogging the entire process is the shortlisting of Inkript/SGS which, according to some privileged individuals closely monitoring the bidding process, failed to meet the criteria set by the Ministry.
Two other bidders, FT and Cetis with superior technical experience according to sources for the referenced project were not invited for the financial opening. Inkript/SGS, whose documents indicate the lack of requisite experience and references, has been shortlisted.
Shortlisting Inkript/SGS has been seen as the Ministry of Transport going against its own requirements set forth in the invitation to bidders which requires history of performance of bidders in African countries.
What’s in Bid for shortlisted companies?
The two companies shortlisted, Techno Brain and Inkript/SGS, submitted proposals with different figures but an analysis of the proposals submitted by the two indicates Techno Brain submitted a lesser figure than Inkript/SGS.
In its financial proposal, Techno Brain’s submitted investments costs of US$2,592,568.06 – with applicable taxes of US$60,761.96 as indicated in its submitted Financial Proposal document.
On the other hand Inkript/SGS submitted an Investment cost of US$2,951,000.00.
Profit sharing module
As part of the requirements for the Driver’s License Project, the Ministry of Transport stated to bidders:
“There are an estimated 300,000 drivers. The driver license has 3-year validity therefore; the average annual renewal is estimated around 100,000.
The current cost of driver’s license is $25.00. The cost is expected to increase by $5 or more when the system is fully automated. This will ensure the minimum of $3,000,000 in annual revenue.
It is expected the winner will receive 40% ($1,200,000.00) annually until the end of the contract or until realizing investment, whichever comes earlier. Note: the above figures are expected to increase with the decentralization.”
From further analysis, the Techno Brain’s Price per Driver License is US$12.00 (40% of US$30.00) and assuming 100,000 annual Driver License renewals, the average annual revenue from the process would be US$1,200,000.00. Over five years, the average total revenue would be US$6,000,000.00 per 100,000 DL per annum.
Based on that, Techno Brain, by its financial and technical submissions accepted the revenue model proposed by MOT along with the associated risks.
As per the US$2,592,568.06 investment cost proposed by the company, it is an indication that Techno Brain is also prepared to incur annual operating expense of US$681,486.38 over a concession period of 5 years.
According to one source close to the entire process, SGS/Inkript is said to be requesting US$40.00 per Driver License.
The source added that should the Ministry of Transport award the project to Inkript/SGS, it means the Ministry will have to charge the public US$100.00 to realize the 40/60 pricing scheme and in such case, SGS/Inkript would receive US$4,000,000.00 while GoL would receive US$6,000,000.00 per 100,000 Driver License per annum or US$20,000,000.00 to SGS/Inkript and US$30,000,000.00 to GoL just for driver license.
The Inkript/SGS proposal, an informed source at the Ministry hinted will be an economic and political disaster and a total fleecing of the Liberian public.
Currently it is estimated that that there are 300,000 drivers in Liberia. The driver license currently in use has a 3 year validity therefore, the average annual renewal is estimated around 100,000.
The current cost of driving license is $25.00 and according to Transport Ministry sources, the cost is expected to increase by $5.00 or more when the system is fully automated and this will ensure the minimum of $3,000,000.00 in annual revenue.
With new process about to be introduced by the Ministry, it is expected the winner to the bid to produce Drivers’ License will receive 40% ($1,200,000.00) annually until the end of the contact or until realizing investment, whichever comes earlier.
The Ministry of Transport requirements provides that responsive bidders are also required to print driver license with the below minimum criteria where bidders shall be evaluated based on the technology they deploy to promote the best security features that can be incorporated on the driver license.
According to the Transport Ministry, bidders are again reminded that the solution they prescribe should be able to interoperate or adapt to other system as the Ministry intends to make the issuance of the driver license a mandatory national ID to be accepted for all transactions.
Some of the features expected to be on the new Driver’s License includes specialized and latest technology background printing methods, sophisticated graphic design elements, including guilloche patterns, deep laser printing of personalized information, card holder’s date of birth laser engraved at base of photograph, a unique serial number on each license card, a bar-code, amongst others.
The process for change of vehicle license plates recently undertaken by the Ministry of Transport faced bottlenecks when the company contracted to perform the task could not provide the license plates on time.