Addis Fortune (Addis Ababa)
Tamrat G. Giorgis
14 July 2008
The National Bank of Ethiopia (NBE) has awarded the German Gieseck & Deverient and the British De La Rue the multi million dollars contract to print various notes of the Ethiopian Birr, sources disclosed.
NBE did float an international tender in May 2008, inviting currency printers to print a total of a little over 1.1 billion Br in all denominations of the Birr. Five of the most reputed firms had responded from the six that have bought the tender document. This included the French Francois-Charles Oberthur Fiduciarie (FCOF), which had won a contract three years ago to print four billion worth of Birr notes in circulation until recently.
It was not lucky this time around. The bid committee of eight, chaired by Alemayehu Kebede, banking modernization and external relations director of the bank, has decided to award the printing of 10, 50, and 100 denominations to Gieseck & Deverient, at a cost of close to 50 million dollars, sources disclosed. The remaining denominations of one and five birr were awarded to De La Rue, which is to be paid over 16 million dollars.
The result is expected to be made within the coming two weeks, disclosed reliable sources.
The German Gieseck & Deverient, the Canadian Bank Notes, the British De La Rue and the French Francois-Charles Oberthur Fiduciarie (FCOF) are among the bidders. The latter printed four billion worth of Birr notes now in circulation after it won a bid in September 2005, for offering the lowest amount.
FCOF became controversial immediately after it won NBE's contract and paid 20pc down payment, for falling under investigation by Kenya's Anticorruption Commission, accused of playing a role in a lucrative contract their government awarded for the printing of electronically readable passports, in the final years of Daniel arap Moi's regime.
Nonetheless, FCOF had continued with the printing and has delivered all the printed notes at Bole International Airport, in four rounds. There are now close to 10 billion Br worth of notes in circulation, while the banking system is believed to keep 56 billion Br worth of notes in saving and time deposit accounts, according to sources at the National Bank of Ethiopia (NBE).
NBE hires international companies to print and ship these notes on an annual basis. It was the British De La Rue that was the favoured printer until the arrival of Dubale Jale as governor of the central bank, in 1995. The German Giesecke & Devrient took the job up until 2004.
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