Eight companies are bidding to supply four million quintals of wheat valued at 3.2 billion Br, including a Dubai based trading house that has been suspended from entering into such bids in Ethiopia. Promising International Trading took part in the bidding process last week after securing a court order, which temporarily lifted the injunction order of the Public Procurement & Property Administration Agency against it. The financial offers of Promising International and seven other companies were opened on January 31, 2019, at the premises of the Agency located on King George VI Avenue, around Sidist area.

The Agency had imposed an injunction against Promising International for one year, excluding it from participating in any bid at the Agency. The ban came into effect due to complaints filed after it was alleged the company failed to fulfil a prior contract.

Promising was awarded a contract to supplytwo million quintals of wheat for 1.39 billion Birr last June but failed to deliver the grain, which led to its subsequent suspension. Displeased with the act of the Agency, Promising took the case to the Federal High Court, that lifted the injunction until the case is resolved.

While the case is still pending at the High Court, Promising International took part in the latest bid announced by the Service on behalf of the Ethiopian Trading Business Corporation to be used for market stabilisation. The tender is categorised in four lots, each consisting of one million quintals.

For the bid that was announced a month ago, a total of 38 companies purchased the bidding document, including Promising. However, only eight - Bunge SA, Hakan Agro DMCC, Intrade Co. UK Ltd, ADM International, Ameropa AG, Phoenix, Promising International and A Plus Import jointly with Wifag Mabruk General Trading - submitted their financial offers.

During the financial opening held at the end of last week, A Plus Import and Wifag Mabrouk General Trading placed the lowest bid. A Plus Import, which participated in the bidding process for the first time, was established in 2012 and is based in the United Arab Emirates.

A Plus Import and Wifag Mabrouk offered 270 dollars, 274 dollars, 278 dollars and 284 dollars a tonne for the four lots, respectively. The offers from the other companies range between 299 dollars to 399 dollars a tonne.

“The results of the evaluation will be announced in two weeks,” said Worku Gezahegn, chairperson of the tender committee and strategic goods procurement team leader at the Service. “The committee will also investigate the current status of the ban on Promising and act accordingly.”