29 June 2019

Ethiopia: Five Firms Vie to Supply 936 Elevators

Five international and local companies are vying to supply 936 elevators for the middle-lower-income housing schemes with an estimated value of 1.3 billion Br.

During the bid opening held on June 25, 2019, three foreign companies - Yida Express Elevator Co Ltd, Xizi Elevator, XiXiAO Elevator - and local companies DAN Lift Technology Plc and Sintec Ethiopia Plc were qualified for the preliminary screening stage of the bid that was announced by the City Administration's Public Procurement & Properties Disposal Agency.

The elevators will be procured for houses that are under construction by Addis Abeba Construction & Housing Development Project Office.

For the initial tender announced in April this year, 46 companies showed interest in buying the bid document. However, only seven of them submitted their technical and financial proposals. Two companies were disqualified due to late submission of their bids.

The elevators, which are divided into four lots, will be installed in seven-storey buildings with and without basements for 468 building blocks.

The first lot consists of 44 elevators that will be installed in 22 building blocks located at Bole Arabsa and Lideta Melso Malmat sites. Under lot two there are six lifts to be installed in three blocks at Bole Arabsa.

Under the third lot, a winning company is expected to supply and install 832 lifts for 416 blocks of houses that are under construction at Bole Bulbula, Tulu Dimtu and Koye Fiche sites. The last lot has 54 elevators for 27 blocks at Koye Fiche.

The Sino-American joint venture Yida Express and the Chinese firm XiXiAO vied for all lots, while Dan lift, XiZi Elevator and SINTEC submitted their technical and financial offers for three lots.

The financial and technical documents of the companies will be evaluated by a team composed of the Agency and the housing project office, according to Bata Edao, chairperson of the tender committee.

"It is difficult to tell when the winning companies will be announced," Bata told Fortune.

Last March the City Administration transferred 52,651 housing units under the middle-lower-income scheme. The houses are located at Koye Fiche. It also handed over 28,000 units of houses built at Bole Arabsa, Lideta, Bole Bulbula, both old and new locations, as well as Tulu Dimtu.

Currently, 41,421 housing units are under construction in six sites including Bole Arabsa, Yeka Tafo, Goro Selassie, Furi Hana, Gulele Wetader Sefer and Jemo Gara.

The project office is also constructing 1,717 housing units in four-storey buildings at the Basha Wolde and Gelan sites for rentals, according to Goitom Berhe, construction supplies procurement and contract engineer at the Project Office.

"The houses are expected to be delivered in 10 months," said Goitom.

In the capital, a total of 835,000 people were registered for apartment housing, but only 176,000 of them have received houses thus far.

Henock Semaw, dean of the College of Business & Economics at Haramaya University, asserts that the problem of public procurement involves poor procurement management, especially in planning, the absence of an efficient workforce and deployment of clear purchasing policy in the institutions.

"The tender for the elevators should have been processed immediately after the approval of the final design of the buildings and commencement of the civil work," he said. "That way the delay would be avoided."

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