S&P Global Platts to analyze global wheat market

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Global market price will be the reference for financial opening of the latest procurement process of 400,000 metric tons of wheat after the Public Procurement and Property Disposal Service (PPPDS) hired a global company, S&P Global Platts, to analyze the global market for wheat procurement.
On Friday July 24, the PPPDS has opened the bid for 400,000 metric tons of wheat that was initially floated in October 2019, after being cancelled in different occasions.
Abeba Alemayehu, Procurement and Contract Administration Sector Deputy Director at PPPDS told Capital that the current bid evaluation process will be different since it considered the international price besides the participants offer.
She said that the new scheme will make the government more beneficiary since the measurement will not only consider the lowest offer at the bid.
“Previously procurement was not assessed based on the global market price, but it was supposed to be because global market price indicator will identify the offer if it was exaggerated or not compared with international rate,” Abeba said.
She added that when the financial offer of the bid participant for the latest bid process opened it will be evaluated with the global market rate, which is analyzed by S&P Global Platts, a London based company. S&P Global Platts is a provider of energy and commodities information and a source of benchmark price assessments in the physical commodity markets for the last 110 years.
“In the past it was difficult to compare the price but this scheme will help us to compare whether it is close with the global market or not,” the Deputy Director said.
At the bid announcement PPPDS indicated that the finance will be evaluated under international price.
PPPDS announced the rebid on June 16 and the bid opening was expected to be done on July 10, which was rescheduled because of internet shutdown.
The wheat global price indicators were not subscribed in the past, while oil and other commodities are subscribed by Ministry of Trade and Industry and National Bank of Ethiopia.
“The new scheme will give more benefit for the wheat procurement, which is one of the strategic commodity for the government,” she added. “Besides that it will increase the quality of the biding process.”
“If we know the fob price at the Black Sea we will expect the bidders’ rate, who may supply from the stated location, to come up with close amount of the rate that we have,” she added.
At the opening only five companies submitted their bid document, while 53 companies bought the bid document.
The Swiss company Aston SA, A Plus Importer, Huyton Inc of London, Latudo General Trading from UAE and Mush Candle Factory Limited of Kenya are the companies that submitted their bid document.
According to their offer most of the companies indicated that they will supply the product from different ports in Russia.
Worku Gezahegn, procurement expert at PPPDS, said that the financial evaluation will be opened when the technical evaluation that opened on July 24 is finalized. He told Capital that the financial evaluation will be opened in the coming ten days.