Two Companies Win Bids to Construct 22 Silos

The bidding process for additional 18 silos was halted following a bid protest 

Two construction companies won bids to construct 22-grain silos, designed to be used in case of disasters in two regional states, for a total of 1.45 billion Br.

The Chinese Zhongyang Construction Group and the local grade one contractor, 3M Engineering & Construction Plc, each won 1.1 billion Br and 342.3 million Br, respectively to implement the project. Zhongyang Construction, established six and a half decades ago, will construct 19 silos in Finote Selam, Amhara Regional State. The local grade one construction company, 3M Engineering, will build three silos in Qebridehar, Ethiopian Somali Regional State.

The award for the construction of an additional 18 silos in Hosaena of the Southern Nations, Nationalities & Peoples’ Regional (SNNPR), was held following bid protest lodged by one of the bidding companies. The case is pending with the board of the Public Procurement & Property Administration Agency (PPPAA).

The Public Procurement & Property Disposal Service (PPPDS) announced the tender last November on behalf of the funding agency, Strategic Food Reserve Agency (SFRA). About 82 firms initially showed interest for the tender and purchased bid documents, with 15 Chinese and 12 local construction firms responding to the tender by submitting their financial and technical offers.

The bid for the construction of 40 silos was tendered in three lots based in the regional states. For the first lot, which comprises of 19 blocks of silos, 10 companies submitted bid documents and only five of them, CCCC, Afro Tsion Construction, China Wu Yi, Yotek Construction and the winner Zhongyang passed the technical evaluation.

For the second lot, which has 18 blocks of silos to be constructed in Hosaena, Southern Nations, Nationalities & Peoples’ Regional (SNNPR) State, 11 companies participated, but only Tekleberhan Ambaye Construction, Satcon Construction, Yirgalem Construction and China Jiangsu passed the technical evaluations. However, one of the participants that failed to pass the technical evaluations, Beijing Urban Construction Group Co, filed a complaint.

The case is under investigation, and until then the process will be held up, according to Assefa Solomon, public relations deputy director at PPPDS.

For the last and third lot 3M Engineering, a company which has completed 70 projects in the past two decades, won the bid against five other participating companies that passed the financial evaluations including Zong Tong Construction, Jiangsu Construction Engineering Group, Delight Power Engineering and SE Construction.

Upon completion of the project, which is estimated to be within three years of commencement of construction, the silos will boost the capacity of the Strategic Food Reserve Agency which operates under the National Disaster & Risk Management Commission (NDRMC).  The Agency, established in 1982, aims at reserving 1.5 million tonnes of grain by the end of the second edition of the Growth & Transformation Plan (GTP II), to be used for displaced people who are in need of emergency food assistance due to disasters.

As a result of droughts arising from 2015 through 2017, El Nino and La Nina effects, an estimated eight million people in Ethiopia require emergency food assistance in the southern and south-eastern parts of Ethiopia, according to a report by United Nations Office for the Coordination of Humanitarian Affairs (UN-OCHA). The report states that an additional one million people displaced after the conflicts in Gedeo, in the southern region, and Guji zone in Oromia region are in need of emergency food assistance.

For Messay Mulugeta (Prof.), a lecturer and researcher for more than a decade in Addis Abeba University College of Development Studies, a country such as Ethiopia with a precarious food supply, vulnerability to food shortfalls owing to seasonal rainfall variability, recurrent droughts and displacements grain reserve has become an integral part of emergency responses and price stabilisation.

“There must be a comprehensive policy for food reserve system in the country to address the need of the community at closest distance and function,” he said.


Published on Jul 07,2018 [ Vol 19 ,No 949]



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