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Billion birr rebar bid goes step further

Billion birr rebar bid goes step further

A long overdue procurement of rebar for public housing project is one step ahead as two local companies in the metal industry has accepted the award to supply part of the billion birr rebar contract worth 436 million birr, The Reporter learnt.

It is to be recalled that Abyssinia Integrated Steel Plc and Steely RMI, two notable local rebar suppliers, were shortlisted to supply part of the billion birr rebar consignment.  

In the latest separate rebidding, for 20mm and 24mm, it is to be recalled that four local companies – Guna Trading House (representing Habesha Steel Mills PLC), Steely, Abyssinia and C&E Brothers were competing to grab the supply.

From this, only Abyssinia and Steely made it to the financial stages and later won the supply.

In this respect, Abyssinia gave a winning offer of 171.1 million birr and Steely listed 265.0 million birr for the 5,882 and 8,689 tons of 20mm and 24mm rebar, respectively.

However, it was only Abyssinia which agreed to accept the award at the time while Steely came up with its own list of preconditions.

Among the preconditions, Steely listed advance payment and initial delivery time of 40 days. Accordingly, the Addis Ababa Public Procurement & Property Disposal Agency accepted all the preconditions except the one that demands adjustments of prices in case of currency exchange fluctuations or adjustments in the tax regulation.

Following this, the Agency wrote a letter which demanded Steely to lift these particular preconditions or it might be inclined to cancel the bid.

Finally, the company has accepted the award.

“We are now left with signing the contracts with the two winning companies,” an official from the Agency told The Reporter.

This particular rebid process was initiated some six months ago as part of a tender initially meant to locally procure 50,084 tons of reinforcement bars for the housing project.

The bidding process which is supposed to be finalized earlier took time due to a number of factors from currency devaluation to bidder’s failures to fulfill the needed requirements. 

Following this, the Agency was forced to repeat the bidding process.

 

As far as the rest of the rebar supply is concerned, all of the local producers who competed to supply the 10mm and 14mm re-bars failed to pass the technical stage because they have failed to submit the test results.

However, when it comes to the supply of 12mm and 16mm size re-bars, Steely, the only company which submitted its financial offer, gave a total price of 497.7 million birr for 6,692 tons and 6,994 tons of the 12mm and 16mm of rebar, respectively.

Following the financial opening, Steely set out similar preconditions before accepting the award.

This particular bid is now waiting the approval of the Board of the Agency, chaired by Abate Sitotaw, deputy mayor of Addis Ababa.

Once they are procured the rebar will be used for the construction of 20,932 housing units at six of its sites across Addis Ababa.