Sugar Factories Privatisation Deadline Extended by Two Months

Aug 5 , 2023

The bid proposal submission date for the eight state-owned sugar factories is pushed by two months, following the need for a prolonged assessment period. The international bid to privatise Arjo Dedessa, Kessem, Tana Beles, Tendaho and the series Omo Kuraz sugar projects was floated by the Ministry of Finance and Ethiopian Investment Holdings last August where over 20 investors have shown interest. Omo Kuraz II and III, built by a state-owned Chinese firm, China National Complete Plant Import Export Corporation (COMPLANT) began production following several postponements and changes in management over their 12-year history. The Omo-Kuraz III plant, erected at the cost of 290 million dollars in the Southwestern Regional State, 900Km from the capital, has a daily production capacity of 10,000qtl of sugar. Omo Kuraz V has been on hold as the primary creditor stalled loan disbursements to the contractor, Jianglian International Engineering Co. (JJIEC). Officials believe the initiative is one of the efforts to transition the factories into a competitive market structure and strengthen private sector growth. An extension of the deadline is expected to provide bidders additional time to prepare comprehensive bids while the instructions for the requests will remain unchanged, according to the announcement made by the two institutions.