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Corporation opens multimillion dollar fertilizer bid


The Ethiopian Agricultural Business Corporation is evaluating a multimillion dollar worth of fertilizer purchase, The Reporter has learnt.

A couple of months ago, the Corporation floated an international tender to purchase 1.3 million tons of fertilizer. The fertilizer was Urea, NPSB, NPS and NPSZnB. The tender has attracted close to 11 international fertilizer suppliers.

The Corporation has invited the companies to purchase 550,000 tons of Urea (divided in 11 lots), 500,000 tons of NPSB (divided in 10 lots), 200,000 tons of NPS (1 lot) and 50,000 tons of NPSZnB (1 lot).

During the bid opening on September, 2017, Samsung C&T (Singapore) gave a least offer of 314.34 dollars/ton, 315.34 dollars/ton and 316.84 dollars/ton for the Urea supply. This will make the total offer from the company worth around 172.8 million dollars.

In addition, when it comes to least offers of the rest 750,000 metric tons of NPS, NPSB and NPSZnB fertilizers Moroccan fertilizer giant, OCP gave a winning price.

In this respect for NPS, OCP gave a least price of 312.5 dollars/ton, 313.5 dollars/ton and 314.5 dollars/ton. This in turn will make the total offer add up to 62.5 million dollars.

For this particular supply, Yara Switzerland gave the second least offer ranged between 316.96 dollars/ton to 319.81 dollars/ton.

For NPSB fertilizer, OCP has also given a winning price of 325.4 dollars/ton, 326.4 dollars/ton and 327.4 dollars/ton. For this particular fertilizer type, a second company from Turkey called ISKENDERUM listed 352.9 dollars/ ton.

The Turkish based company has also competed for NPSZNB.

However, the tender evaluation committee chaired by deputy CEO of the Corporation, Tafesse Gebru (PhD), told participants that it is not going to open the technical as well as financial proposals from ISKENDERUM.

The reason was ISKENDERUM has failed to submit a bid bond document from a bank.

This leaves OCP as the only competitor for the supply of 50,000 tons of NPSZnB. OCP gave 380.6 dollars/ton, 381.6 dollars/ton and 382.6 dollars for this supply.

According to the least price offered by the aforementioned, the total least offer will be around 417 million dollars with OCP listing the lowest price for most of the supply.

It is to be recalled that the Morocco based fertilizer producers has also supplied 70 percent of last year’s fertilizer purchase by Ethiopian government.

Unlike previous purchases, the latest types of fertilizers will be a compound type. It is to be recalled that Ethiopia, a couple of years ago began to blend fertilizers, locally.

The latest supply, however, will be a compound and will not be locally blended.

“Once we finished the evaluation we will announce the results soon,” Tafesse told the participants.

Following this purchase, the Corporation will announce another round of purchase for the supply of 200,000 tons of different fertilizers.