NOC, City Roads Authority Sign 120m Br Procurement Agreement

National Oil Ethiopia Plc (NOC) signed a 120 million Birr procurement agreement with Addis Abeba City Roads Authority (AACRA) on May 15, 2015.
The procurement agreement is to supply 7,000tn which will be procured to the authority at 159Kg per barrel for road projects including 30Km of new roads and 25Km of renovation.
The additional supply of 3,000tn of asphalt, will be supplied through another international competitive bidding to complete the 10,000tn of asphalt AACRA had planned to use in the next fiscal year said Endalelegn Aregaw, the Authority’s procurement case team co-coordinator.
So far, in this fiscal year, AACRA has used only 5,000tn, he added.
There were four bidders in this tender, including Tola Hayu Business Plc, importer of road construction materials, WTY Construction Plc, and Oil Libya Ltd, but NOC’s offer of 17,532 Br per tonne, including VAT, was the winning offer. NOC will make the supply in 90 days from the date of the agreement.
NOC supplies an average of 60,000tn of asphalt a year, imported from the United Arab Emirates, for road projects undertaken in the country, Taddesse Tilahun chief executive officer (CEO) of NOC told Fortune.
During the last fiscalFORTUNE STAFF WRTERyear, the asphalt supplier for AACRA was also NOC, which had supplied 5,000tn of asphalt, while GIFT Trading Plc and Country Trading Plc supplied in 2013 and 2012, respectively. GIFT had supplied 2,000tn in 2013.
There was no international competitive bidding previously because of the structure of the procurement office in AACRA and lack of professionals. The procurement department was separated from the finance department in 2014, which Endalegn says could help to minimise cost and increase competition.
The international oil market which had been significantly decreasing had a positive impact in the procurement of asphalt. In 2014 the AACRA had bought 5,000tns of asphalt for 115 million Br. That is now down to 120 million Br for 7,000tn, Endalelegn said.
Founded in April 2004 by Mohammed Hussein Ali Al-Amoudi (Sheik), Tadesse Tilahun and Abinet Gebremeskel, NOC operates 140 service stations thoroughout the country. The company had been concluding similar agreements with Ethiopian Roads Authority (ERA).


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