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Gov. to procure 4 bln birr wheat for drought

Gov. to procure 4 bln birr wheat for drought

As part of the ongoing effort to mitigate the impact of the drought, Ethiopian government is to purchase four million quintals of wheat which is estimated to cost the government around four billion birr.

In this regard, Public Procurement and Property Disposal Service, on behalf of the National Risk Management and Disaster Prevention Commission, is preparing to conduct the wheat purchase. The Service has already floated an international competitive bid this week calling upon interested bidders to participate.

The latest wheat purchase will be the second biggest in terms of size in the past two years. It is to be recalled that in 2015/16 Ethiopia made its biggest purchases of wheat in recent years by procuring 17 million quintal of wheat at a total price of 8.8 billion birr.

The latest purchase is expected to feed close to 5.4 million people out of the 8.5 million people who are affected by the drought. From the total 8.5 million people, the rest 3.1 million are assisted by the support coming from World Food Program (WFP) and other donors.

Once procured, the wheat will be distributed to those areas affected by the drought. As a standard, one individual get 15kg of wheat, a month.

Mandated to conduct procurement of goods and services through strategic as well as framework tenders on behalf of federal budgetary offices and universities, the Service concluded 9.6 billion birr worth of purchase during the previous fiscal year.

From the total, 2.1 billion birr was spent on the purchase of common good items for universities and budgetary institutions.

By the same token, the Service collected 96.8 million birr from disposal of scrap metals, and other used common good items.

For the latest wheat purchase, the government may spend around four billion birr. According to Trading Economics, a website which provides a global economic data, the global price of wheat stands at 440 dollars per ton.

As far as the latest tender is concerned, the tender will be opened on October 17, 2017.

Since its establishment in 2010, the PPPDS has procured over 51 billion birr worth of goods, including 11 million quintals of wheat, which cost 21 billion birr.

Over 60 percent of the budgets of many public institutions go to procuring public goods and services, representing 15 percent of the country’s GDP.