BANK OF GHANA

Tender Documents

Selective Tendering

Implementation of
Ghana Retail
Payment Systems
Infrastructure

Request for Proposal

May 2016
 Invitation for Tenders
The Republic of Ghana
(BANK OF GHANA)
SELECTIVE TENDERING
PROCUREMENT OF TECHNICAL SERVICES

1. The Bank of Ghana intends to apply part of its budget for 2016 to fund eligible payments
under the contract for procurement of Technical Services for the Implementation of Ghana
Retail Payment Systems Infrastructure in Ghana.

2. The Bank of Ghana now invites sealed Tenders from eligible suppliers or their authorized
representatives for the procurement of items in the table below:

PACKAGE NUMBER DESCRIPTION COST OF TENDER

TENDER SUBMISSION
DOCUMENT DATE
GR/BOG/TS/0007/2016 Technical Services for the
Implementation of Ghana Free July 04, 2016
Retail Payment Systems
Infrastructure in Ghana

3. Tendering will be conducted through the Selective Tendering procedures specified in the
Public Procurement Act, 2003 and in the Guidelines of the Procurement Authority of the
Republic of Ghana.

4. A complete set of hard copy of Tender document may be obtained by interested eligible
suppliers at the address below from Mondays to Fridays between the hours of 09:00am to
4:30p.m. The document will be available from May 27 to July 04 2016.

5. Tenders shall be valid for a period of 90 days after the deadline of Tender submission.
All Tenders must be accompanied by Valid IRS, VAT Registration, Certificate to Commence
Business and SSNIT Clearance Certificates.

Tenders must be delivered to the address below on or before 10:00am Monday, July 04,
2016.

6. Tenders will be opened in the presence of the Tenderers’ representatives, who choose to
attend at the Bank of Ghana Auditorium, Head Office, 4th Floor at 10.00am local time on
Monday, July 04, 2016. Late Tenders will be rejected.
LOCATION AND CONTACT PERSON FOR ALL ENQUIRES:

Mr. Gilbert Addy

Bank of Ghana
Information Technology Department
High Street
1st Floor
Email Address: gilbert.addy@bog.gov.gh
Tel.: 0302-666902 ext. 4134

LOCATION FOR OBTAINING TENDER DOCUMENT:

The Procurement Manager

Bank of Ghana
Cedi House
3th Floor
Room Nos. 313, 309 and 310.
Tel.: 0302-665252 ext. 5323/5356/5321

LOCATION FOR TENDER SUBMISSION:

The Secretary’s Dept.

Bank of Ghana
4th Floor
Room No. 422
Tel.: 0302- 666902 ext. 4471
The Bank of Ghana (BOG) Request for Proposal – Ghana National Switch and Mobile Payment System

1. Introduction
1.1 Background
Bank of Ghana (BOG) seeks for the establishment of an integrated and interoperable electronic
national payment system in Ghana. This is in line with its policy objective of averting the
development of fragmented payment systems, which may not be efficient on liquidity and also
increase the cost of payment transactions. To this end, the BOG requires the implementation of an
electronic payment infrastructure, which will connect with and complement the existing electronic
inter-bank payment and settlement systems in Ghana.

Currently, there is interoperability in the payment cards subsector in Ghana, facilitated by the gh-
Link payment switch for locally branded payment cards on one hand, and on the other hand, an
international payment switch for international payment card brands such as Visa and MasterCard
among others. Efforts are underway to integrate these two categories of payment cards for
switching on a common platform to enhance the overall efficiency of payment cards in Ghana.

Besides payment cards that are being provided by Banks, BOG has licensed non-bank entities to
operate business as dedicated electronic money issuers (DEMIs), by enabling digital funds transfer
using mobile phone as the payment device. At the moment there are four (4) mobile network
operators, namely; MTN, Airtel, Tigo and Vodafone that are operating in the electronic money
issuance space. However, the payment platforms of the operators are not interoperable; thereby
fragmenting the electronic money ecosystem, resulting in suboptimal performance. It is in aligning
the operations of the electronic money ecosystem to the payment system policy objective of BOG
that this RFP is being implemented.

BOG through this tender seeks a vendor to supply, implement, own and operate an integrated and
interoperable Mobile Payment Systems Infrastructure (MPSI), as a turn-key solution project – that
is, all components must be supplied and/or integrated by the vendor to create a fully tested,
working system meeting the requirements of this RFP. The successful tenderer will be awarded a
contract by BOG to supply, and implement MPSI, including hardware, systems software, and
application software at the tenderer’s own expense, and own and operate the delivered system.
BOG will use the system as a monitoring tool for payment system oversight. The successful tenderer
will provide the technical training needed for staff of participating institutions, namely; BOG, banks
and mobile money operators (MMOs) to be able to use and support the MPSI.

The BOG has confirmed its commitment to facilitating development of a comprehensive and
properly regulated national payments systems infrastructure, so that the market does not develop
piecemeal or with inconsistent standards. The Banks, Payment Service Providers (PSP) and MMOs
are the ultimate beneficiaries of the BOG’s effort. BOG, as the payment systems regulator, will have
oversight responsibility of the MPSI.
 1.2 Existing Payment Systems Infrastructure

The Ghanaian Payment System (IPS) presently comprises the following components:

RTGS The Real Time Gross Settlement system for high value payments BOG

Cheque codeline clearing with truncation. This system enables the GhIPSS
CCC electronic clearing of cheques with cheque images.
GhIPSS
ACH Automated Clearing House for bulk debit and credit funds transfers
Separate CSD exists for both Government and BOG Securities
Registration and Settlement System and equities. Plans are underway CSD
CSD to merge the two CSDs into a single securities platform
A national interbank switching and processing system which connects GhIPSS
with the switches of payment system participants for ATM, POS and
Gh-Link e-commerce transactions
Participant System, located at each bank, used to prepare and deliver Banks
PS payment instructions to the Clearing House
Smart card payment system capable of offline and online transactions. GhIPSS
e-zwich Verification of cardholder is by biometric authentication.
Mobile phone is used as a payment device which enables electronic MMOs
Mobile funds transfer and payment for goods and services with pre-loaded
money funds.
The Bank of Ghana (BOG)
Request for Proposal – Ghana Mobile Payment System

1.3 Objectives of the RFP

1.3.1 Tender content and process

This RFP is focused on the software, hardware and services required for the implementation of a
Mobile Payment Systems Infrastructure (MPSI) as a turnkey project.

The Tender for the implementation of the MPSI is by a Selective tendering.

The Tenderer is required to perform the following:
 Overall integration of mobile payments platform of the MNOs in Ghana. 

 Supply, installation, and integration of application software, hardware, infrastructure,
operating systems, database and middleware supporting an operational MPSI pilot.
 Supply of software, hardware and implementation of a functional interoperable mobile
money ecosystem.

 Integration with Ghana’s clearing and settlement facilities consisting of CCC, ACH, RTGS, CSD
and gh-Link.

 Integration with the Participant Banks, Mobile Money Operators (MMOs), and the existing
Front End Processors (FEPs).






The Bank of Ghana (BOG)

Request for Proposal – Ghana National Switch and Mobile Payment System

Implementation services will be provided under a Contract to Supply and Implement the MPSI
(“Contract”), under which the BOG grants the right to the successful tenderer to build, own and
operate an interoperable MPSI for Ghana.
The contract will include the following stages of delivery
1. Vendor mobilization period – maximum of two months
2. System implementation – maximum of six months to install hardware, software, and
systems infrastructure
3. User Acceptance Test phase – three month, extendable pending BOG and industry
acceptance of the system.
4. Pilot Phase – MPSI up and running with pilot banks, and new banks, entities, and
functionality added as the project progresses. The duration should be six months.

1.3.2 Equipment and System Software

Tenderer proposals must explain the necessary hardware environment for successful operation of
the MPSI, setting out the hardware and software platforms that will support the system with exact
configurations. Pricing for the configurations must be included in the tenderer’s Financial Proposal.

The Technical Proposal must address both main and fall-back (disaster recover / business continuity)
sites, including all hardware configurations, middleware and software; stating versions and models
with part numbers and quantities. Equipment installed at the main site must include a testing
environment as well as address any computing hardware needed by BOG as the regulator of MPSI to
access the system in order to discharge effectively its oversight responsibilities. Tenderers must take
into account all requirements for third party software (including database) licensing for main and
fall-back sites.

Network bandwidth requirements should be addressed in the architecture guided by the Tenderer’s
experience.

1.3.3 Application Software and Services

The Tenderer must provide, as part of the project implementation, all the necessary application
software and services to build the MPSI system; including comprehensive plans to configure, deliver
and implement the MPSI software; as well as relevant training for the effective operation and
support of the entire system under the supervision of the BOG. These tasks include:

Services required for implementing the MPSI

 

Coordination of implementation activities with BOG Payment System Oversight and

Operations staff, GhIPSS with respect to payment systems operated by GhIPSS, participant
 supporting their switches and infrastructure, and Mobile
Banks and technology suppliers
Money Operators (MMOs).

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The Bank of Ghana (BOG)
Request for Proposal – Ghana National Switch and Mobile Payment System

The Regular submission of project management report to the BOG, at least once a month,
 and more often, if requested by the BOG. 
Provision and management of a detailed Project Plan (documented using a standard
project planning software tool), including description of tasks, roles, responsibilities and
 methodologies to be used, as well as interactions with the BOG team. 
A requirements analysis exercise with a formal report of localization requirements, special
functionality required and any changes, configuration and customizations needed to be
 made to standard application software (the “Initial Report”) 
Configuration or customization of the software to BOG’s requirements as stated in this RFP
 and the Initial Report. 
 Installation of the application software on a test bed for system and integration testing 
Facilitation of the agreement of detailed standards and requirements for interface
messages with BOG and other System Operators
 

 Implementation of any necessary interfaces to BOG systems

 Connection of the central application(s) to the Participants 
Provision of test bed test plans and User Acceptance Test plans encompassing testing of all
 systems functionality. 
Provision of full documentation for the system, including User Manuals for System
Administrators and Participant Users, Systems Maintenance Guide, configuration
documentation, Technical Manuals, “As-Built” hardware documentation, draft System
Rules and draft Participant Agreements
 

 Disaster recovery and business continuity plans

Provision of comprehensive classroom training to BOG and Participant User staff on a
 “Train the Trainer” basis
Provision of on the job training and knowledge transfer for BOG and Participant technical
staff as needed
 

 Support of User Acceptance Testing managed by the BOG

 Support of the “go-live” process 
Support and maintenance of the Application Software for twelve (12) months a renewable
period following an eighteen (18) months free warranty period on the total system,
through an Application Software Maintenance and Support Agreement concluded with
BOG

1.3.4 Support and Maintenance

The Application Software Maintenance and Support Agreement, shall be negotiated during the
implementation stage of the MPSI, and incorporate: a Service Level Agreement (SLA) which will
include system performance as experienced by internal and external users; application software
support, including any implementation work required to meet the on-going requirements of the SLA,
and work required to ensure that the system continues to meet the functional and service level
requirements and standards of the international payment networks despite increasing volumes or
any functional enhancements.

There shall be an initial twelve (12) months fee free maintenance period. During the one-year fee
free maintenance period, the successful tenderer must also commit to ensuring that all system
software components are maintained in up to date versions, fully licensed and supported and at the

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The Bank of Ghana (BOG)
Request for Proposal – Ghana National Switch and Mobile Payment System

prices offered in the tender. This is to ensure that BOG, Banks, GhIPSS and MMOs are fully aware of
their maintenance cost liabilities throughout the life of the MPSI.

1.4 Objectives of the Systems

The key anticipated benefits of the MPSI are:
Establishment of an infrastructure to support interoperable mobile payments in Ghana that
provides an interbank conduit and clearing and settlement of mobile payments among
different issuers

Provide assurance for financially and legally secure settlement of low value electronic
payments, via the existing RTGS system for reliable, safe, and integrated payments and
settlement system for all payment types 

Reduce dependence on cash and paper payment instruments, as a means of improving the
security and operational efficiency of the overall payment system 

Reduce operational costs of processing payment transactions to Participants and also
introduce new revenue streams through new payments products and services, such as
mobile direct debit services, mobile direct credit service as well as electronic bill
presentment and payment using mobile payment solutions

Provide convenience, enhanced service offering greater range of services to bank customers
and improving the speed of availability of funds to end-customers

Facilitate integration of payments originating from core banking systems and third party
transaction originators such as mobile money operators, internet payment gateways and
payment aggregators. 

8
The Bank of Ghana (BOG)
Request for Proposal – Ghana National Switch and Mobile Payment System

Make Ghana attractive for trade and investment by providing, efficient, transparent, cost
effective, safe and secure retail payment services l that conform to international standards. 

Against the background of these generally targeted benefits, the MPSI must deliver the following
specific benefits, which will support and complement the existing retail payment capabilities of
GhIPSS, banks and third party service providers.

All e-money issued in Ghana must be useable at all payment terminals in Ghana. In line with
this, all Mobile Payment Systems in Ghana must be capable of interoperability and not be
restricted to use by customers of one bank or one mobile network operator. 

Commercial Banks and Commercial bank customers should have the facility to effect “real
time” funds transfer from one mobile bank account to another from any bank branch in
Ghana to any other bank branch in Ghana either using a mobile handset, a POS terminal, an
ATM, an Agent or an internet generated payment with subsequent clearing and settlement
of transfers obligations on participant banks’ general ledger no later than three hours after
completion of the original real time transaction. 

Government Ministries, Departments and Agencies (MDAs) will be able to initiate and
receive payments electronically through their banks. These payments will be exchanged
through the MPSI to any beneficiary, regardless of the bank or MMO they do business with
or from any payer, notably for payroll instructions and disbursement of state pensions and
social benefits, particularly in rural areas, leveraging the existing agent network of banks and
MMOs to reach out to the unbanked with secure mechanism for payments in Ghana. 

Utility companies and other businesses will be able to initiate and receive payments
electronically through their banks. These payments will be exchanged through the MPSI to
banks to any payee or from any payer, notably for Direct Debit instructions and Mobile
Direct Debits, thereby improving the timeliness and effectiveness of utilities payment
collections for both public and private sectors. 

Reduce the risks in paper payment instrument such as cheque by substituting gradually
electronic payments for cheque payments. 

Reduce the use of cash throughout the country, thus avoiding risks associated with cash
movement and cash transactions. 

1.4.2 Guiding principles

The BOG will play an active role in the mobile payments environment as regulator and overseer,
settlement agent, and facilitator of innovation. BOG will, as part of its oversight responsibility;
ensure the existence of rules and regulations governing the MPSI.

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The Bank of Ghana (BOG)
Request for Proposal – Ghana Mobile Payment System

BOG as a central bank will not be a Participant in the MPSI. The rationale is to bolster confidence of
the payments industry in the BOG as a neutral regulator and overseer of the payment system.
The BOG will promote the use of modern electronic retail payment services in Ghana with an overall
objective of minimizing the use of cash and paper-based payment instruments.

The development of the MPSI will follow similar principles to those of the other interbank payment
systems.

Each licensed bank which conducts retail payments business in Ghana will be required to
participate in the MPSI system (directly or via third party processing agents) in order that full
interoperability is maintained. 

Similarly, newly licensed banks intending to conduct retail payments business in Ghana will
be required to participate in the MPSI system. 

The MPSI functionality and operations must conform to the Principles published by the Bank
for International Settlements (BIS) in the “CPSS-IOSCO Principles for Financial Market
Infrastructures”, of April 2012. (See www.bis.org )

The MPSI must: 

Be able to support disaster recovery operations capable of ensuring business
continuity in the event of serious disruption in the primary data center, disaster
recovery facilities must be included as part of the bid in order to provide assurance
 for high levels of service availability.

Be consistent with industry standard Open Systems conventions and interfaces
which allow the system to be interfaced easily with other systems, and/or expanded
by functional module or by capacity, and thus accommodate future changes in
volumes and services.
Provide for low cost and easily implemented technical connections for new user
sites, including Bank Head Offices and branches, at either LAN or WAN level – which

means a “non-intrusive” style of connection, not requiring major changes to existing
 bank systems and using accepted international format and protocol standards.
Demonstrate high levels of reliability and trustworthiness with particular emphasis
on data integrity and security by preventing unauthorized access so as to reduce the
risk of transaction fraud. This includes use of PKI security methods, other suitable
industry standard security methods and provision of full audit trails and associated
reporting for all activities within the system.
The Bank of Ghana (BOG)
Request for Proposal – Ghana National Switch and Mobile Payment System

1.4.3 Operational Risk Management

Participants will be expected to underwrite the settlement of their own MPSI positions. Positions
should always be collateralized either by cash in RTGS or securities in CSD pledged in support of the
settlement. Such securities should be capable of immediate liquidation. The total of these collaterals
constitutes a debit cap on the Participant’s ability to send payments. The debit cap may be set
automatically by reference to collaterals held in BOG’s RTGS and/or CSD, as a guarantee in a failure
to settle arrangement.

The MPSI must have approval/authorisation options which can be used to input and modify standing
data. Each data item manually entered must be subjected to dual control. Mechanisms must be in
place to handle “failure to settle” in RTGS arising from Participants not having sufficient funds to
settle their interbank obligations. Tenderers must explain their recommended approach to dealing
with this issue.

The clearing process must be transparent. Participants and BOG must be able to view transactions
and positions in real time and at all times, with participants able to see only their own data.
However, BOG as an oversight authority must have the privilege of seeing industry data. In view of
this, the MPSI must provide comprehensive audit trail as well as monitoring and management tools
for BOG, as overseer, to promote the efficiency and safety of the system. Similar tools should be
made available to Participants to identify, assess and manage their liquidity needs in the system.

There must be comprehensive session-based and end-of-day reporting sufficient to enable the
System Operator to administer the systems and to supervise the activities of the Participants and
MNOs in MPSI. MPSI Participants must be given same information to enable them manage their
activities within the system.

1.5 Funding and Financial Proposals

The total cost of implementing the project and the cost of on-going support must be consistent with
profitable operation at the volume of transactions to be processed and with reasonable assumptions
about the acceptable level of fees in the Ghanaian market. This is to ensure that the system is able
to generate enough revenue to recover the operational cost and also recover the implementation
costs within a reasonable period without hampering Ghana’s financial inclusion agenda.

Tenderers for the “Supply , implement and Operate” Contract must provide a financial proposal
which must give a breakdown of hardware, system software, application software costs to BOG,
System Operator, Participants and any other parties for each application, indicating among others
where infrastructure may be shared.
1.6 Evaluation Criteria

There will be a three (3) stage evaluation process namely;

1) Preliminary Examination for Substantive Responsiveness;

2) Technical Evaluation; and
3) Financial Evaluation.

The Preliminary Examination will be conducted to ensure that the Tender is substantially
responsive in terms of all mandatory tenderer and product and services eligibility
requirements; and that the Tender meets all the conditions stipulated in the RFP for
acceptance for detailed evaluation.

A detailed technical evaluation will be undertaken for the tenders that are accepted for
further evaluation after the Preliminary Examination.

Only the technically qualified tenders (i.e. Tenders that receive a technical score of 80% or
more will be shortlisted for financial evaluation.

The basis for final ranking of the Tenders is Quality and Cost Based (QCB). And the weights
given to the Technical and Financial Proposals shall be:

Technical Proposal - 80%

Financial Proposal – 20%
Total Weight – 100%

1.6.1 Technical Evaluation Process

The Technical evaluation will be done on a total score of 100. The Technical Score Card is as
follows:

Evaluation Criteria:
No. Criterion Max Points

1 Similar Project Experience 40

2 Quality of Methodology 20

3 Qualification and Experience of proposed 10

Personnel

4 Quality of Design and Proposed Solution 30

 Design
 Components of Solution
 Energy Efficiency
Total 100