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Ethiopia: Only One Public Enterprise Attracted Bidders

Out of six enterprises, Privatization & Public Enterprises Supervising Agency (PPESA) floated, only one attracted a buyer.

The only enterprise that attracted bidders is Ethiopia Fibre Products Enterprise’s warehouse. Nonetheless, the other enterprises; Bahir Dar Textile S.C., Kombolcha Textile S.C., Agricultural Mechanisation Service Enterprise, Transport Construction Design S.C. and Bilito Siraro Farm failed to attract any bidder.

The tender was opened on Saturday, May 14, 2014 and it stayed open until 15 minutes before the financial opening of the tender on Tuesday, July 22, 2014.

It was five bidders that submitted their offer for the warehouse. Among the bidders it was G Seven Trading & Industry Plc that made the highest offer, 10.1 Million Birr. The next two highest bidders were Ture Plc and Ambalay Raiey Trading Plc with an offering of 8.8 Million Birr and 7.158 Million Birr respectively. The other two offers made were by Dukem Textile Factory with 7.155 Million Birr and Adabo Midroc Training Plc with 5.5 Million Birr.

All the bidders presented a Certified Payment Order (CPO) or Bid Bond of 96,569 Br, along with technical proposals. Four of the bidders proposed to make a 30 percent payment in advance and pay the rest five days before handover. Nonetheless, Ture proposed to pay 30 percent
in advance and the rest in a one year time.

The warehouse is located around Saris. It lies on a 650.3 square meters land in a 2,550 square meters compound which includes office buildings. It also has two metal containers that cover 37sqm.

Source: Fortune