Requirements (GNBBA)

Ghana National Bid Bond Authority ensure that contractors can comply with bid contracts and will fulfill their job responsibilities at agreed prices, the bond that serve as a means of legal and financial protection to the client.

Without bid bonds, the government of Ghana would have no way of guaranteeing that the bidder they selected for a project would be able to complete the job properly.

This is to make sure that there will not be any abandoned projects again in Ghana both to public and private sectors.

It helps to protect the relationship between the contractee and the contractor.

Public Financial Management Act, 2016 (Act. 921) stated that a Ghana National Bid Bond Authority Certificate gives the contractor the right to obtain a loan of 20% of the contract fee from any bank or financial body in Ghana when the contractor has executed 50% of the project. The Insurance Act, 2021 (Act 1061) protects the contractor from paying tax to any loan obtained within the geophysical location of Ghana. GHANA DEPOSIT PROTECTION ACT, 2016 (ACT 931) ensures that contractors receive 2.5% interest rate of every money deposited with the Bid Bond. Section 3 of Act 931 amended The principal enactment is amended in section 3 of the constitution for paragraph (b), of “(b) support the development of a safe, sound, efficient and stable market-based financial system in Ghana by ensuring prompt payouts to insured depositors on the occurrence of an insured event.

Refund is made with additional profit 2.5% per month of capital amount deposited with the Ghana National Bid Bond Authority to the contractor.

Freezing of transactions or accounts 47 (1) The Centre shall not investigate serious offences but where the Chief Executive Officer is of the opinion that it is necessary to freeze a transaction or an account to prevent money laundering, the Chief Executive Officer may direct the freezing of a transaction or account of any accountable institution.