Four local companies have been deemed eligible to supply 14,571tns of reinforcement bars (rebars) intended for the construction of middle-income housing projects.
Guna Trading House, Steely RMI, Abyssinia Integrated Steel and C&E Brothers passed the preliminary technical evaluation of the tender floated by Addis Abeba Public Procurement & Disposal Service.
It is estimated to cost the Service over 400 million Br. Had it not been for the recent devaluation, the value would have been 50 million Br lower than the current quotation. The total cost is based on an estimation of the London Metal Exchange Market- pricing a tonne of rebars at 516 dollars as of last Thursday.
The steel will be used by the Addis Abeba City Saving Houses Development Enterprise (AASHDE) for the construction of 20,932 middle-income housing units at six of its sites.
The four companies were selected amongst the 12 bidders that intended to participate in the bid floated on October 23, 2017.
Two weeks later, the preliminary technical evaluation of the tender was held at the premises of the Agency. Trade license, tax clearance and authorisation certificates, as well as bid security of the participants, were reviewed during the opening.
The results of the current technical evaluation will be announced on November 20, 2017, according to Gezahegn Wodaje, senior procurement officer and bid evaluation team coordinator of the Service- whose mandate is to procure various strategic inputs and to dispose of properties of public offices and agencies.
The bid committee will conduct four reviewing phases including preliminary, technical, post evaluation and financial evaluation during the selection process.
The financial status, labour capacity and warehouse conditions will be assessed in the post-evaluation stage.
The latest procurement occurs when Steely RMI and the Service are at loggerheads over the supply of 35,429tns of rebar worth around a billion Birr.
Steely, one of the giant steel manufacturers in the country with the capacity of producing 360,000tns of steel, is demanding the Service to adjust its initial offers. At that moment, Steely managed to bag the tender after competing with C&E Brothers, Abyssinia and Habesha Steel Mills Plc, all of which failed to pass the technical evaluation stage.
The annual production of steel in the country was close to 700,000tns in the previous fiscal year- three times lower than the aggregate production capacity of the steel manufacturers.
It is not just the Service that is looking for steel suppliers now. Army Foundation, established to meet the needs of the army, has issued an international tender to procure 23,000tns of rebars. The bid, which is against the directive of the Ministry of Finance & Economic Cooperation (MoFEC) that entails preferential treatment to local suppliers, will be opened on November 14, 2017.
Source : AddisFortune