Monday, December 4, 2023
BusinessAnother major bid floats as Ethiopia steps up wheat purchase

Another major bid floats as Ethiopia steps up wheat purchase

It is the largest volume this year

Agro Corp, another new entrant into the Ethiopian market gave the lowest offer of USD 135.24 million (3.786 billion birr) for the supply of 600,000 metric tons of wheat, The Reporter has learnt.

This is the largest single wheat purchase by the government within the past two weeks. It can be recalled that just a week ago, another company by the name GM Corp has managed to give the lowest offer of USD 97.73 million (2.73 billion birr) for the supply of 400,000 metric tons of wheat.

Agro Corp, a Singapore based company, is involved in many sectors including agro processing and has never been involved in supplying wheat to the Ethiopian market.

The bid for the supply of 600,000 metric tons was divided into six 100,000 metric ton lots. In this regard, Agro Corp only competed for one Lot and gave the lowest price of USD 225.40 per tonfor Lot 1.

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The offer from Agro is also lower than similar lowest offers made by GM Corp, as of last week,for the supply of 400,000 metric tons. It can be recalled that GM gave the lowest prices of USD 249.34, USD 248.34, USD 246.34 and USD 244.34 per ton for each of the four lots.

Following Agro, Amropa AG gave the second lowest price of USD 239.27, per ton for lot 4.This would make the total offer from Amropa AG USD 143.56 million.

During the latest bid opening on April 30, 2019 on the Public Procurement and Property Disposal Service’s (PPPDS) premises, 11 companies were announced to have submitted their bids, in which the number of participants showed an improvement compared to the previous bid.

Promising International, a company familiar to the Ethiopian wheat market, has also submitted an offer.

In this regard, Promising gave the third least offer of USD 240.40 per lot for Lot 4 with a total offer USD 144.24 million.

The least price offers from the aforementioned bidders in comparison to previous bid ders have a lesser gap between them in terms of money offered.

Once awarded to the winning bidder, the wheat is expected to be transported to the country and distributed to more than 5,000 bakeries and 300 flour factories.

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