Van der Ploeg International BV, a Netherlands-based company, opened a letter of credit (LC) at the Commercial Bank of Ethiopia (CBE) last week, after winning a tender floated by the Agriculture Growth Project (AGP) to supply pregnant heifers.
The bid, which was opened on September 23, 2013, invited eligible and qualified bidders to apply for the tender to supply bovine semen, bull, doses of hormone, Holsteins and parent poultry, classified under five lots.
Although nine local and international companies showed interest by buying the bid document, only five made an offer, including Van der Ploeg International BV, which lodged a bid to supply 300 heifers.
Although the bid opened in September 2012, the final result was announced five months later because of a stern evaluation process, Keberu Belayneh, coordinator of the AGP told Fortune.
Managed by Wondyerad Mandefro, state minister of Agriculture, the AGP is a project led by the Agricultural Growth & Development Bureau, at the Ministry of Agriculture (MoA). Established three years ago, the project intends to increase the productivity of animal husbandry by supplying improved inputs.
Wise Team Plc, a local company, which was awarded the tender to supply 15,000 parent poultry, offered 142,419 dollars by collaborating with an international company.
However, the remaining two lots were cancelled, as a result of failing to submit proper documents, said Keberu.
Two local companies, Addis Vet Veterinary Drugs & Medical Importer and Addis Livestock Production & Productivity Improvement Service offered 130,000 dollars and 890,000 Br, respectively, for the supply of 37,000 doses of hormone and 5,000 doses of semen.
Addis Vet Veterinary failed to submit a bid security, whilst Addis Livestock Production failed to meet the standard specification, according to Keberu.
Crv BV, another Dutch company which participated in the bid, offered 25,654 dollars to supply semen, but failed to win the tender.
The fifth lot of the bid, which included the supply of 20 bulls, did not attract any bidders.
The procurement of the improved animal inputs was launched with an estimated value of 1, 152,364 dollars, financed by the project.
Because it is difficult to find such inputs in the local market, we will put the three remaining lots back on the auction table soon, said Keberu.