Wednesday, January 18, 2023
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BusinessService awards wheat supply to three companies

Service awards wheat supply to three companies

The bid process is facing another complaint

The Public Procurement and Property Disposal Service (PPPDS) has decided to award three international companies—Bunge. SA, Amropa AG and ADM International—the supply of 400,000 metric tons of wheat worth 3.47 billion birr, The Reporter has learnt.

It is to be recalled that a couple of weeks ago, the Service retendered the wheat supply bid to buy 400,000 metric tons of wheatwhere eight companies submitted their proposal.

At the time it was another company that managed to list the lowest offer.

It can be recalled thatWifagMabrouk General Trading, a new entrant to the Ethiopian wheat market along with its local agent Aplas Importer Plc, gave the lowest offer of USD 108 million (3.04 billion birr) for the supply of the 400,000 metric tons of wheat.

However, the company failed to pass the technical evaluation of the bid at which time the PPPDS decided to pass the award to other bidders based on their offer.

WifagMabrouk and its local partner failed to come up with a document which proves their joint venture partnership,YigezuDaba, General Director of the Service told The Reporter.

“There was no authentication document attached which indicate the arrangement between the two companies is legal,” he said.

The price offer by Wifag is almost 300 million birr lower than the total offer from the now awarded three companies, namely: Bunge. SA, Amropa AG and ADM International.

The bid for the supply of 400,000 metric tons was divided into four lots, each with 100,000 metric ton lots. In this regard, from the total offers, Bunge S.A won Lot-1 and Lot-3 with the total offer of USD 61.7 million (1.75 billion birr) whereas Lot-2 and Lot-4 went to Amropa and ADM with a total offer of USD 30.84 million and USD 29.9 million, respectively.

Following the award, as of last week,Wifag has submitted its complaint to the Service as well as the Public Procurement & Property Administration Agency, The Reporterhas learnt. The company argues that since it gave the lowest price,it disserved to win the bid.

Upon reviewing the complaints, the Board of the Agency is expected to pass its final decision in the next few weeks.

The latest wheat supply is destinedto be distributed to more than 5,000 bakeries and 300 flour factories.

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