Addis Ababa Public Procurement and Property Disposal Service awarded Steely RMI PLC to supply 50,084 tons of reinforcement bars that are worth 1.23 billion Birr. The steel is for the public housing projects the Addis Ababa City Administration is undertaking.

“We have already sent them a letter of notification to accept the award,” Allene Gebru, general manager of the Service, said.

However, the price Steely gave was before the 15 percent devaluation made by the National Bank of Ethiopia. According to The Reporter, the retail market of reinforcement bars is already experiencing an unprecedented increase in the price.

Commenting on the devaluation and its possible effect on the price Steely provided, Allene noted, it was not allowed to make price adjustments within 3 months after the contract is signed. Thus far there was no formal request from Steely about any price adjustments, he added.

According to Woubshet Adfres, communication director at Addis Ababa Finance and Economic Development Bureau, the Bureau would check if the products or raw materials were imported before or after the devaluation. The Trade Bureau had data in this respect and would make sure that things were done properly, he said.

Other competitors to the bid were Habesha Steel Mills PLC, C & E Brothers PLC and Abyssinia Integrated Steel PLC. They were all competing to supply 10mm, 12mm, 14mm, 16mm, 20mm, and 24mm reinforcement bars with each grade size of 12,519 tons, 6,692 tons, 6,994 tons, 9,308 tons, 5,882 tons, and 8,689 tons respectively. The price Steely gave for this products were 25,916.47 birr, 24,150.97 birr, 23,647.05 birr, 24,097.47 birr, 24,773.1 birr and 24, 773.1 birr for one tone of 10mm, 12mm, 14mm, 16mm, 20mm, and 24mm reinforcement bars, respectively.

Consumer Protection and Trade Practice Authority‘s price list from 3 weeks back shows 1 Berga reinforcement bars in the capital city was ranging from 190 Birr to 1,055 Birr.

Source: The Reporter