Public Procurement and Property Disposal Service (PPPDS) on behalf of the Ethiopian Grain Trade Enterprise (EGTE) has awarded two companies for the purchase of 2.4 million quintals of wheat with 1.08 billion Birr.

To stabilize the market, Ethiopian government has been importing different types of wheat. In 2011/12 and 2012/13, 4.2 and 5.6 million quintals of wheat were imported respectively, but in 2013/14 the amount decreased to five million quintals.

Out of 6.5 million quintals of planned wheat purchase for the current budget year, six million quintals have already been purchased.

The least of offers were made by Promising International Trading, U.K based company known for trading milling wheat, sugar, sorghum, peanuts, groundnut oil and cake, sesame seeds and pulses with Ethiopia, Dubai, Ukraine, Syria, Egypt and Tunisia.

Promising offered 220.88, 222.09, 222.17, 223.01 and 224.18 USDs per ton for five lots, each with 40,000 tons. Whereas, a joint venture of TBG, Bassiouni Group with Bukhawa Investment LLC, companies form U.S and United Arab Emirates, respectively have offered USD 224.38 per ton for 400,000 tons, the second least price offered.

As per the least offer, the companies have been asked to supply their respective amount with the least price, which is 220.88 dollars. However, in the case of Promising, it agreed to supply only 40,000tn with the least price it offered and the second least price provider has also accepted the least price offered by Promising and agreed to supply 200,000tn.

By the same token, the agency will give the chance and request the remaining six companies to supply the remaining 1.6 million quintals of wheat with the least price offered by the winner. Priority will be given to the third least price offering company.

Source: Addis Fortune