ADDIS ABABA – The Ethiopian government has extended the bid submission deadline in the tendering process of eight state-owned sugar enterprises at the request of potential investors.
The announcement was made three days ahead of the initial bid submission deadline set to expire.
The Ministry of Finance and Ethiopia Investment Holdings are in charge of the government’s push to transfer the factories to the private sector through a tendering process.
The duo say the decision to extend the bid submission date was made in response to the potential bidders’ requests, seeking more time to complete their assessments.
Accordingly, the original submission date of August 3, 2023, has been rescheduled to October 5, 2023.
Similarly, the date for submission of requests for clarifications and conducting site visits has also been extended.
“This extension will provide bidders with additional time to conduct their detailed due diligence and prepare comprehensive bids that align with the Government of Ethiopia’s vision for the privatization,” authorities say.
More than 20 foreign and domestic companies officially registered their interest to acquire up to 100 percent of these factories.
Omo Kuraz 1, Omo Kuraz 2, Omo Kuraz 3, Omo Kuraz 5, Arjo Dedessa, Kessem, Tana Beles, and Tendaho sugar factories are the subject of the tendering process.
Most of them are newly constructed factories with built-in trunk infrastructure, water, land resources, and cane-growing agro-climate conditions. They are also engaged in the production of ethanol and electricity for internal use and to supply to the national grid.
The tender to privatize these factories is a part of the larger effort to transition to a competitive market structure and strengthen the private sector’s role in the economy.