Wednesday, June 12, 2024
BusinessPromising wins bid to supply wheat worth USD 52 mln

Promising wins bid to supply wheat worth USD 52 mln

Promising International – a UK-based trading company – won a bid to supply 200,000 metric tons of wheat with a total price of USD 52.01 million, The Reporter has learnt.

This will be its second contract over the past two months for Promising to supply another 200,000-metric tons of wheat. It is to be recalled that the Public Procurement and Property Disposal Service (PPPDS) awarded Promising the contract to supply 200,000 metric tons of wheat with a total price of 1.64 billion birr.

It is to be recalled that, during the latest bid, Promising managed to give the first two lowest offers.  The company listed an offer of USD 251.30 per one metric ton for Lot 1 and Lot 2 and with an amount of USD 254.8 if it is to be delivered by their own vessel. In addition, the company gave USD 258.05 and USD 262, per one metric ton if it is to be delivered using ESLSE vessels.

The second lowest offer came from Hakan Agro DMCC – a UAE based company – with an offer of USD 261 for Lot 1 if it is to be delivered using its own vessel.

Following this, as of this week, the Service has written an award notification letter to Promising. The company in reference to the letter has to respond in less than one week; after which other competitors will have a time to submit in case they have complaints over the results.

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The latest bid was part of a bigger tender where the government was looking for a company to supply 400,000 metric tons. In this regard, the Service floated an international bid almost six months ago. It was floated on behalf of the Ministry of Trade to be distributed for the purpose of market stabilization. Due to a prolonged and recurring controversies, the Service refloated the tender three times.

In this regard, during the first round of bidding, Shakeel and Company – a new supplier from Pakistan; not familiar with the Ethiopian grain market, gave the lowest offer of 2.6 billion birr for the supply of 400,000 metric tons of wheat. However, this bid was later cancelled following a disagreement between the Company and the Service.

Moreover, during the second round, Promising managed to offer 2.7 billion birr. However, the bid yet again was plunged into controversy declaring Promising technically unfit.

These and related back and fourths in the bidding process caused a nationwide shortage of wheat. This forced authorities to downsize the quota of wheat distributed across the country by almost 50 percent.

Following this, the Service floated the tender for a third time in April, 2018. However, within a few days, the tender ended up being amended. In this regard, it downsized the initial 400,000 metric tons by half and in return the Service asked Promising to supply the rest of the 200,000-metric ton.

These adjustments made by the Service gave Promising the chance to supply the wheat with around 1.64 billion birr. Now with the current award, Promising will have a chance to snatch a 3.03 billion birr worth of wheat supply.

Following the award, Promising will deliver the wheat where it will be distributed among two different warehouse destinations in Adama and Komobolcha.

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