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Ethiopia: New Threshold Pending for Local, International Competitive Bids

The Public Procurement & Property Administration Agency (PPPAA) is to push the threshold levels it uses to distinguish between local and international competitive bids in its preparation to amend Proclamation No. 649/2009.

The current threshold levels were set by the federal procurement directive of 2010; 50 million Birr for construction of roads and buildings, 10 million Birr for goods, seven million Birr for services and 2.5 million Birr for consultancies.

The above stated prices were calculated at the time when the exchange rate from Dollar to Birr was eight, said Tigist Debebe, Director at Public Procurement and Property Administration Agency.

The amendment of this article is important since there are changes in economic environment from time to time, Tigist noted.

The specified threshold is not decided yet. The decision will be made following a discussion with the stakeholders, said Tigist.

Moreover, threshold in various types of bids like pro forma and restrictive bids will be adjusted.

Ministry of Finance and Economic Development (MoFED) had reviewed the amendment in June 2015, and submitted it to the body specified for dealing with legal issues, Tigist stated.

The report of this legal body within the Ministry is expected by August, 2015.

Source: Addis Fortune