Ethiopia’s fuel and coal sole supplier, Ethiopian Petroleum Supply Enterprise (EPSE), awarded Riftcot Limited and HC Trading PLC to supply 1.2 billion Birr worth agreement for the supply of coal to cement and metal processing factories operating in Ethiopia.

The companies are going to supply the coal for 20 cement factories and 3 other factories. The profit margin set for the company is 0.19 dollars for the 600,000 tons of coal it will supply to the cement factories. Riftcot Limited and HC Trading PLC will also supply 100,000 tons of coal for the 3 other factories with 2.74 dollars margin profit.

Riftcot supplies the coal every month while HC Trading will provide the coal on quarterly basis. The contract is going to last for only 12 months period.

The companies were awarded after an international bid was floated 2 months back. The bid attracted 5 local and 4 international companies. Nevertheless, the local companies did not make it to the technical evaluation as they failed to submit a fully-fledged certificate.

Rfitcot is based in Kenya and it had actually won the same bid a year ago to supply 700,000 tons of coal. HC Trading is also a foreign company known for the supply of cement and coal, selling about 6 million tons of petroleum coke and steam coal annually to many countries globally.

Source: Fortune