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Six int’l firms submit offers for wheat supply

Six int’l firms submit offers for wheat supply

Six international companies gave their respective financial offers for the supply of 400,000 metric tons of wheat.

The wheat is required as part of government’s effort to mitigate the impact of the drought which has affected 8.5 million people in Ethiopia.

Following the floating of the tender on September 30, 2017, some big names in the industry have forwarded proposals for the bid process. The companies include Promising International, ADM International, INTRADE, Hakan Agro, Bunje and Phoneix.

Though 43 tender documents were sold, only the aforementioned six appear on the opening date. 

The bid was opened on October 24, 2017, at the Public Procurement & Property Disposal Service’s premises located off King George VI Street.

The Service has divided the bid into three lots based on their amount – 200,000 metric tons, 100,000 metric tons and another 100,000 metric tons. The three lots are set to be distributed among five different warehouse destinations in the country: Adama, Komobolcha, Dessie, Mekelle and Dire Dawa.

In this respect, Intrade, a UK based company, offered the lowest prices of 296 dollar per one metric ton for Lot 3 to be delivered at Dessie Warehouse.

In addition, the same company gave the second and third lowest offers of 297 dollars (for Lot 3) and 298 dollars (for Lot 2) destined to Dire Dawa and Dessie warehouses, respectively.

The next lowest offers came from Promising International. The Company listed 297.30 dollar and 298.05 dollar per ton for Lot 1 to be delivered at Dessie and Kombolcha Warehouses.

During the price read out, it was indentified that two companies—Bunje and Phoenix—has filed to indicate the type of currency they use for their price offers.

“We will record this situation of the two companies and we will decide on it later,” Solomon Beter, procurement head of the Service told the bidders.

The evaluation will be conducted and the results will be announced in a short period of time, said Solomon.

The latest wheat purchase will be the second biggest in terms of size in the past two years. It is to be recalled that in 2015/16, Ethiopia made its biggest purchases of wheat in recent years by procuring 17 million quintal of wheat at a total price of 8.8 billion birr.

The latest purchase is expected to feed close to 5.4 million people out of the 8.5 million people who are affected by the drought. From the total 8.5 million people, the rest 3.1 million are assisted by the support coming from World Food Program and other donors.

Once procured, the wheat will be distributed to those areas affected by the drought. As a standard, one individual get 15 kilogram of wheat, a month.