The Ethiopian Agricultural Business Corporation is evaluating a USD 400 million (11 billion birr) worth of fertilizer purchase, The Reporter has learnt.
The bid that was floated to purchase 1.125 million tons of fertilizer has attracted six global fertilizer suppliers. The fertilizer to be supplied was Urea, NPSB, NPS and NPSZnB.
The Corporation has invited the companies to purchase 500,000 tons of Urea (divided in 10 lots), 450,000 tons of NPSB (divided in nine lots), 75,000 tons of NPS (in one lot) and 100,000 tons of NPSZnB (also in one lot).
During the bids opening in September 19, 2018, Agri Commodities and Finance ZTE gave a least offer of USD 359.35, USD 360.70 and USD 363.60 per ton for the Urea supply. This will make the total offer from the company worth around USD 179.67 million.
The second least offers for the Urea supply was listed by Swiss Singapore. The company gave an offer of USD 380.28, USD 381.70 and USD 383.25 per ton taking the total offer to USD 190.14 million.
In addition, for the rest of the 625,000 metric tons of NPS, NPSB and NPSZnB fertilizers, the Moroccan fertilizer giant, OCP, gave the winning prices.
In this regard, for NPSB, OCP gave a least price of USD 394.06, USD 394.79 and USD 394.25 per ton. This will make up a total least offer of USD 177.32 million.
The offers from OCP for NPSB are much less than the second least offers from Mid Gulf International, another competitor in the bid. In this respect, Mid Gulf listed USD 425.61, USD 426.61 and USD 427.61 per ton or a total offer of USD 191.5 million.
By the same token, OCP also gave a much more reasonable offer on the rest of the bid to supply NPSZnB. It listed USD 461.96, USD 462.69 and USD 464.15 per ton which takes the total offer to USD 34.64 million. On the other hand, the second bidder, Nitron Group Corporation gave USD 594 per ton or a total offer of USD 44.5 million.
On the last round to supply 100,000 tons of NPS, OCP was the only competitor. In this regard the company gave a USD 384.96 dollars/ton, USD 385.69 dollars/ton and USD 387.15 for this supply.
According to the least price offered by the aforementioned company, the total least offer will be around USD 417 million with OCP listing the lowest price for most of the supply.
Unlike previous purchases, this time around the suppliers have been given the option on which port to use while delivering the fertilizers. Specifically, when it comes to the delivery of NPS, NPSB and NPSZnB; the winning company can use either the port of Massawa or Djibouti.
“Now we have alternatives,” an official from the Corporation told The Reporter. The supplier can use either of the two ports to discharge the fertilizers.
“We know that the facility at Port of Massawa is not ready to discharge large amounts of shipment but at least we can use it as a bargaining chip to get a reasonable price from the Djiboutian side,” the official said.
Following the tenders opening, the tender committee will evaluate the technical and financial documents submitted by the bidders.