Mekele - Abiadi Heavy Maintenance Road Project

Bidders are allowed to participate for One or for all of projects tender out at the same time as indicated under sub clause ITB 13.12.

​A bidder can be awarded any projects that the bidder has applied for by applying multiple contract assessments criteria set below and based on the Employer’s best economical advantage.

The Bidder must demonstrate access to, or availability of, financial resources such as liquid assets, unencumbered real assets, lines of credit, and other financial means, other than any contractual advance payments to meet the following cash-flow requirement:

​​ i.)       ​Bidders and each partner to a Joint Venture should provide information on their current commitments on all contracts that have been awarded, or for which a letter of intent or acceptance has been received, or for contracts approaching completion, but for which an unqualified, full completion certificate has yet to be issued.

ii.) Cash flow requirement: Specify proposed sources of financing, such as liquid assets, unencumbered real assets, lines of credit, and other financial means, net of current commitments, available to meet the total construction cash flow demands of the subject contract amounts ETB 88 Million for Local Bidders and ETB 118 Million for Foreign Bidders.

The average annual turnover calculated as total certified payments received for contracts in progress or completed within the last years must exceed times the amount of the financial proposal of the Bid.

​​i.       ​For Local Bidders (Individual firms or Joint Venture):Peak annual construction turnover of ETB 283 Million calculated as total certified payments received for contract in progress or completed within the last Five (5) years.

​ii.       ​For Foreign bidders (individual firms or Joint Venture): -Average annual construction turnover of ETB 709 Million calculated as total certified payments received for contracts in progress or completed within the last Five (5).

iii.       For a Joint Venture of Local and Foreign Bidders: Average annual construction turnover of ETB 531 Million calculated as total certified payments received for contracts in progress or completed within the last Five (5) years.

Submission of audited balance sheets and other financial statements as required in the BDS Clause 17, for the last years to demonstrate the current soundness of the Bidder's financial position and its prospective long term profitability.

Submission of audited balance sheets or if not required by the law of the Bidder's country, other financial statements acceptable to the Employer, for the last Five (5) Years to demonstrate the current soundness of the Bidder`s financial position and its prospective long-term profitability. 

The bidder’s financial statement must fulfill at least the following minimum financial soundness requirements

Local bidder:

    i.      Average current ratio of the last five years should be more than one (1) OR

The current ratio of the recent year should be more than one (1)

And

   ii.     Profit before tax or return on equity of the past four years should be positive. 

Foreign bidder:

    i.     Average current ratio of the last five years should be more than one (1)

And

  ii.      The current ratio of the recent three years should be more than one (1)

And

 iii.      Profit before tax of the past five years or return on equity from net worth of the past four years should be positive.

·     For local bidders who have failed to satisfy the above financial soundness requirements, they can optionally provide and attach with the qualification document unconditional line of credit specific to the project equivalent to the amount specified under Item No. 4.3(i) and valid for the duration of the contract otherwise; they will be rejected from further evaluation.

The Unconditional Credit Facility shall be in line with Form-L enclosed in Section 4: Bidding Forms of the Bidding Document.

·     If the local bidder is qualified and becomes the recommended bidder for award of the contract with provision of unconditional line of credit, he shall sign tripartite agreement with ERA and the Bank before signing of the contract; otherwise, he will not be considered as successful bidder.

·     In case of joint venture partnership, if any of the local partner of the JV has failed to fulfill the requirement of current ratio/Average and profit before tax/Return on equity as required above, the local partner is required to bring unconditional guarantee amounting proportionally equal to the shares of the local partner calculated from the total amount of cash flow requirement Specified under item No. 4.3 (i).

·     Annual financial statements shall be prepared by certified auditors but not by an accountant or accounting firms. Financial statements prepared by accounting firms will not be accepted.”

·     The audited financial statement prepared by an independent auditor shall be notarized by Addis Ababa Chamber of Commerce for Local Bidder and Notarized by appropriate Notary Public and Authenticated by Foreign Affairs Minister of Ethiopia for Foreign Bidders. 

·     While converting the annual turnover of other currencies to ETB, the applicable exchange rate of National Bank of Ethiopia for the date ending of each audit period shall be used.

The Bidder has successfully completed at least contracts with a budget of at least that of this contract in the past years.

For local bidders

Two (2) Experience in construction contracts in the role of contractor, sub-contractor, joint venture partner or management contractor and

For foreign bidders​

Five (5) Experience in construction contracts in the role of contractor, sub-contractor, joint venture partner or management contractor.

The general experience of the Contractor shall be considered after the signing of the company’s first contract

​Participation as contractor or joint venture partner or management contractor or subcontractor, within the last ten (10) years:​

i)  ​For local bidders:

A Minimum One (1) Any Road Maintenance / Construction / Upgrading /Rehabilitation Project with a value of ETB 744 Million  OR

A Minimum Two (2) Any Road Maintenance / Construction / Upgrading / Rehabilitation Projects each with a value of at least ETB 372 Million OR A Minimum Three (3) Any Road Maintenance / Construction / Upgrading / Rehabilitation Projects each with a value of at least ETB 248 Million that has been successfully and substantially Completed (70% Completed). 

​ii) For Foreign bidders:

A Minimum of Two (2) Similar Road Maintenance or Construction / Upgrading / Rehabilitation Projects each with a value not less than ETB 1,063Billion that has been successfully and substantially Completed (80% Completed). 

Proposal of Work Methods and Program, in Sufficient detail to demonstrate the adequacy of the bidder’s proposal to meet the technical specifications within the completion period.

RC – 2 or GC -3 and above

The Bidder has to demonstrate that it will have available for the implementation of the contract the following equipment listed hereafter

All pending litigation shall in total not represent more than percent of the Bidder’s net worth and shall be treated as resolved against the Bidder.

All pending litigation shall in total not represent more than Thirty Percent (30%) of the Bidder's net worth and shall be treated as resolved against the Bidder. 

If the Employer, based on full documentary evidence, establishes poor performance by any Bidder engaged in similar works in Africa and other developing countries, on any contracts carried out over the last 2 years. Or if a bidder is not performing to the satisfaction of the Employer on the already awarded contracts, then the Employer may use this information in the assessment of the Bidders’ qualifications.​Must meet requirement by itself or as partner to past or existing JV.

​i.)      ​Non-performance of a contract did not occur within the last Two (2) years prior to the deadline for Qualification submission based on all information on fully settled disputes or litigation.  A fully settled dispute or litigation is one that has been resolved in accordance with the Dispute Resolution     Mechanism under the respective contract, and where all appeal instances available to the Bidder have been exhausted. In addition to the submitted information, the Employer reserves the right to obtain any records of non-performance of the Bidders in the past 2 years from official records within or outside of Ethiopia as a basis for qualification.

ii) If the Employer, based on full documentary evidence, establishes poor performance by any Bidder engaged on similar works in Africa and other developing countries, on any contracts carried out over the last 2 years. Or if a bidder is not performing to the satisfaction of the Employer on the already awarded contracts, then the Employer may use this information in the assessment of the Bidders’ qualifications.

iii.)      ​Evaluation of Contractor’s Performance shall be conducted regularly.

​iv.)      ​Any Contractor’s performance shall be evaluated based on the ERA’s Contractor’s performance assessment framework and rated accordingly. The minimum acceptable performance on ongoing contracts shall be revised to reflect the actual situations. The minimum acceptable performance on ongoing contracts is set from time to time by ERA BOARD.”

v.)  If ERA found Non-performance or poor Performance history of a Bidder at any stage of the tendering process before signing of the contract agreement [except for ERA’s Monthly Contractor’s performance assessment framework, the result of which is considered only for the preceding month before submission of bid], the bidder will be rejected form the proceeding stage of the tendering.

Staff Currently Working for the bidder

Personnel for the Key Positions (Bidders are required to propose qualified persons for the following key positions.)

Having been registered in the Public Procurement and Property Administration Agency's Suppliers List in accordance with ITB Clause 4.6.

Having been submitted VAT registration certificate issued by the tax authority in accordance with ITB Clause 4.5.

Having been submitted valid trade license or business organization registration certificate issued by the country of establishment in accordance with ITB Clause 4.5.

Having been submitted valid tax clearance certificate issued by the tax authority in accordance with ITB Clause 4.5.

Compliance with conditions of ITB Clause 4.4.