The government gave a 50 million Br vehicle supply contract to a Dubai company, dropping offers made by established local suppliers.
The tender, issued by the Ministry of Finance and Economic Development (MoFED) for the procurement of 210 vehicles, attracted offers from six local companies, including Moenco, Nyala Motors, Ultimate Motors, Paul Ries, and Rise Engineering. There were two bidders from abroad, including the winner, Gulf Commercial Company (GCC).
GCC is a Toyota dealer, and it will supply the government 210 vehicles including Toyota Yarises, station wagons, double cabin pickups and 10 G9 models for officials.
The company was selected because it offered to make the delivery in less than a month. The rest required a six month period, according to an expert close to the issue at the Road Transport Authority.
“The government wants to get the vehicles urgently,” he said.
The government has not made vehicle purchases since 2008/09 despite increasing demands with the opening of universities all over the country and the opening of additional government offices.
The total demand for vehicles had been estimated at 700 which the government had unsuccessfully tried to meet by taking Vehicles from those institutions that had extra vehicles. All government bodies had been instructed to report their excess vehicle capacity to the MoFED, but scarcely 50 were reported, all of which were old.
It was then decided to invite tenders. A committee established under the MoFED chaired by Yigezu Minassie was established. Formerly vehicle acquisitions were managed by the Road Transport Authority. The committee specified to the bidders that the vehicles were to be Toyotas.
“We made this decision because of time constraints,” Yigezu said.
The money for the procurement was taken from the one billion Birr contingency budget the MoFED had set aside.