Fortune News | Jun 23,2019
A four-year long elevator procurement saga came to an end after the Chinese firm, Xizi Elevator Co. Ltd, was awarded the 347 million Br contract.
Xizi Elevator will supply 338 electric traction elevators in seven lots for housing units under the middle-income housing schemes of the city administration of Addis Abeba.
The elevators will be installed in seven-storey to 18-storey buildings, which have been under construction since 2013.
The winner was notified of the contract last Tuesday, February 5,2019, after bidding against seven other companies over the last eight months.
The bid was canceled twice. The first round failed as no company was technically qualified to bid, while a dispute between the local company, Dan Lift Technology, and the city Housing Development Enterprice over the procedure led to the cancellation of the second bid.
The latest bid was floated on June 16, 2018, and opened on August 8, the same year. Out of 48 companies who purchased tender documents, five foreign and six local companies, including Dan Lift Technology, Racrob Business, Sintec Ethiopia, Tsemex Global Enterprise, Impression General Trading and Kebede Gebremichael Electromechanical participated in the bid. The foreign companies included Xizi, Hiwing Mechanical & Electrical Technology Corporation, CCCC Ltd, Hengda Fuji Elevator Ltd Co. and ITECH International.
During the financial opening held in December 2018, Xizi made the lowest offer for all lots, 138 million Br below the second lowest bidders, Impression General Trading ans Sintec Ethiopia Plc.
The initial tender for the procurement of the elevators was announced in March 2015 by the Addis Abeba Saving & Houses Development Enterprise. It was initially canceled after the three local companies that took part in the bidding process, Dan Lift Technologies, Syntec Ethiopia and Yobek Electrical Enterprises, failed to pass the technical evaluation.
The Enterprise refloated the bid in June 2017 under five lots that attracted a total of 12 local and overseas suppliers. Four companies passed the technical evaluation, while Dan Lift failed to meet the technical requirements of the project.
Disappointed with the result, Dan Lift Technology filed a complaint stating that it was kicked out from the process without reasonable cause. Dan submitted the grievance to the Enterprise, the Office of the Prime Minister, the City Administration and Federal Anti-Corruption Commission.
The Addis Abeba City Finance & Economic Development Bureau resolved the case by cancelling the bid and switching the mandate of handling the bidding process to the city procurement agency rather than the Enterprise. Since August 2017, the Enterprice has delivered 17 buildings housing 876 units in the Senga Tera and Crown sites and is currently constructing 38,000 units in 13 other sites.
In the third attempt by the City Procurement Agency, the Chinese company, which previously lost a contract for the supply of 302 elevators for the lower income housing scheme by offering prices deemed lower than the production cost of the elevators, won the contract to supply the elevators.
Notifying the winning company took two months, according to Bikila Gelana, procurements and contracts division deputy CEO at the Agency.
"Due to the reshuffling of board members of the Agency, the decision was delayed,” said Bikila.
Getaneh Terefe, a consultant with more than three decades of experience in civil engineering, believes that stalled tender processes are one of the drawbacks in the construction sector that must be dealt with seriously.
“Delayed tender processing will bring price escalation, quality compromise and client dissatisfaction,” said Getaneh.
Since a lift shaft is constructed starting with the foundation, it must be well-thought out and the procurement of the lift, given the utmost care with the designer, suppliers and builders planning it beforehand, according to Getaneh.
The contracted company will deliver and install the elevators within four months from the signing of the contract, according to Bikila.
PUBLISHED ON
Feb 09,2019 [ VOL
19 , NO
980]
Fortune News | Jun 23,2019
Fortune News | Mar 05,2022
Radar | Aug 01,2020
Agenda | Dec 19,2021
Fortune News | Jul 18,2020
Fortune News | May 25,2019
Fortune News | Apr 29,2023
Fortune News | Jul 08,2019
Radar | Aug 07,2021
Fortune News | Sep 18,2022
Feb 24 , 2024 . By MUNIR SHEMSU
Abel Yeshitila, a real estate developer with a 12-year track record, finds himself unable to sell homes in his latest venture. Despite slash...
Feb 10 , 2024 . By MUNIR SHEMSU
In his last week's address to Parliament, Prime Minister Abiy Ahmed (PhD) painted a picture of an economy...
Jan 7 , 2024
In the realm of international finance and diplomacy, few cities hold the distinction that Addis Abeba doe...
Sep 30 , 2023 . By AKSAH ITALO
On a chilly morning outside Ke'Geberew Market, Yeshi Chane, a 35-year-old mother cradling her seven-month-old baby, stands amidst the throng...
May 2 , 2024
For successive generations of Ethiopia's tax authorities, the chore of tax collection...
Apr 27 , 2024
The Prosperity Party (PP) - Prosperitians - is charting a course through treacherous...
Apr 20 , 2024
In a departure from its traditionally opaque practices, the National Bank of Ethiopia...
Apr 13 , 2024
In the hushed corridors of the legislative house on Lorenzo Te'azaz Road (Arat Kilo)...