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CONTENTS

Proclamation No. 649/2009

The Ethiopian Federal Government Procurement and
Property Administration Proclamation Page 4858

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PROCLAMATION NO. 649/2009.

THE ETHIOPIAN FEDERAL GOVERNMENT
PROCUREMENT AND PROPERTY
ADMINISTRATION PROCLAMATION

WHEREAS, to achieve better transparency, efficiency,
fairness and impartiality in public procurement and to enable
the utilization of the large sum of public money spent on
procurement in a manner that ensures greater economy and
efficiency by addressing problems encountered in the course
of implementation of the proclamation determining the
procedures of public procurement of the Ethiopian Federal
Governmemt and establishing the Supervisory Agency during
the years in which it was enforce;

WHEREAS, it is necessary to ensure that an
organization enabling the realization of the economic
benefit and efficiency flowing from bulk purchase is in
place;

WHEREAS, to ensure that public property in which a
significant amount of public money is invested, is utilized in
such a manner as to enable the government device maximum
benefit therefrom and modernize the administration thereof, it
is necessary to introduce an integrated public property
administration;

NOW, THEREFORE, in accordance with Article
55(1) of the Constitution of the Federal Democratic
Republic of Ethiopia, it is hereby proclaimed as
follows:

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CHAPTER ONE
GENERAL

1. Short Title

This Proclamation may be cited as The Ethiopian
Federal Government Procurement and Property
Administration Proclamation No.649/2009.

2. Definitions

In this Proclamation unless the context requires
otherwise:

1/ Goods mean raw material, products and
equipment and commodities in solid, liquid
or gaseous form, marketable software and
live animals as well as installation, trans-
port, maintenance or similar obligations
related to the supply of the goods if their
value does not exceed that of the goods
themselves;

2/ Services mean any object of procurement
other than works, goods and consultancy
services: such as maintenance, security,
janitorial, electricity, telecomm- unication
and water supply services;

3/ Works mean all work associated with the
construction, reconstruction, up grading,
demolition, repair or renovation of a building
road, or structure, as well as services
incidental to works, if the value of those
services does not exceed that of the works
themselves and includes build-own-operate,
build- own-operate-transfer and build-
operate-transfer contracts;

4/ Consultancy Service mean a service of an
intellectual and advisory nature provided by
consultants using their professional skills to
study, design and organize specific projects,
advice clients, conduct training and transfer
knowledge;

5/ Procurement mean obtaining goods, works,
consultancy or other services through
purchasing, hiring or obtaining by any other
contractual means;

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6/ Public Body mean any public body, which is
partly or wholly financed by the Federal
Government budget, higher education institutions
and public institutions of like nature;

7/ Public Fund mean any monetary resource
appropriated to a public body from the Federal
Government treasury or aid grants and credits put
at the disposal of the public bodies by foreign
donors through the Federal Government or
internal revenue of the public body;

8/ Public Procurement mean procurement by a
public body using public fund;

9/ Supplier mean a natural or juridical person
under contract with a public body to supply
goods, works or services;

10/ Candidate mean a natural or juridical
person invited to take part in public
procurement or seeking to be so invited;

11/ Bidder mean a natural or juridical person
submitting a bid;

12/ Bidding Documents mean a document
prepared by the public body as a basis for
preparation of bids; which contains a
specification of the desired object of
procurement;

13/ Bid Proposal mean a document submitted
by bidders to participate in a bid on the basis
of the bid document prepared by a public
body in respect of that procurement;

14/ Procurement Directive mean the directive
to be issued by the Minister of Finance and
Economic Development in accordance with
this Proclamation;

15/ Minister or Ministry mean the Minister or
the Ministry of Finance and Economic
Development respectively;

16/ Person mean a natural or juridical person;

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17/ Special Procurement mean a procurement
of sizable volume carried out in bulk by a
decision of the Minister on account of the
national significance of that procurement or
to fulfill similar requirements of various
public bodies or requirements of a public
body within a given period of time;

18/ Framework Contract mean a general agreement
of procurement establishing unit price and other
terms and conditions of contract which serves as a
basis for supplies to be delivered under future
specific contract;

19/ Framework Contract Supplier mean a
supplier who has entered in to a contractual
obligation to supply goods or services under
a framework contract;

20/ Board mean an entity established under
this Proclamation to review and decide on
complaints from candidates in regard to the
conduct of procurements and disposal of
property of the Federal Government;

21/ Public Property mean any property of the
Federal Government other than public fund
and land;

22/ Custodial Responsibility mean the
responsibility conferred on a civil servant by
the head of a public body or by a person
delegated by him to protect and maintain
public property until it is disposed or written
off, or transferred to the custody of another
civil servant or public body;

23/ Fixed Asset mean tangible asset the value
of which is determined by a directive to be
issued by the Minister, that is in operational
use and that has a useful economic life of
more than one year, such as furniture,
computers, heavy equipment, vehicles, ships
and aircraft, buildings, roads, sewers,
bridges, irrigation systems, dam and the like;

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24/ Life- Time Approach mean a system of
effective management and control of public
property which takes in to account all
associated activities and costs, namely,
planning, acquisition, receipt, use,
maintenance, consumption or disposal or
deletion of public property;

25/ Supplies means all public property other
than fixed assets, which can be consumed
within one year of use and the value of which
is determined by a directive to be issued by
the Minister;

26/ Disposal mean the transfer of public
property to another person by sale or other
means or the act of getting rid of public
property by burning or burying;

27/ Public Private Partnership mean investment
through private sector participation by a
contractual arrangement between a public body
and a private sector enterprise, as the
concessionnaire, in which the concessionnaire:

a) undertakes to perform or undertake any
construction project or service or lease
concession;

b) assumes substantial financial, technical and
operational risks in connection with the
performance of a public function or use of
government property; and

c) receives consideration for performing a public
function or utilizing government property, by
way of fees from any public funds, user
levies collected by the concessionnaire from
users or customers for a service provided by
it, or a combination of such consideration.

28/ Concessionaire mean a person who enters
into a contract with a public body under a
public private partnership;

29/ "Regional States" mean member states of the
Federal Democratic Republic of Ethiopia
listed under Article 47 of the Constitution of
the Federal Democratic Republic of Ethiopia
and for the purpose of this Proclamation
include the Addis Ababa and Dire Dawa City
administrations.

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3. Scope of Application

1/ This Proclamation shall apply to all Federal
Government procurement and property
administration.

2/ Notwithstanding the provisions of sub-article
(1) of this Article:
a) the Minister in consultation with the
heads of the relevant public bodies may
in the interest of national security or
national defense decide to use a different
procedure of procurement and property
administration in which case the
Minister shall define by a directive the
method of procurement and property
administration to be followed in order to
serve the interest of economy and
efficiency;

b) this Proclamation does not apply to
contracts a public body enters into with
another public body for the provision of
goods, works, consultancy or other
services at cost.

4. Gender Reference

Provisions of this Proclamation set out in
masculine gender shall also apply to the feminine
gender.

5. Principles of Public Procurement and
Property Administration

Public procurement and property administration
shall have to comply with the following
principles:

1/ ensure value for money in the use of public
fund for procurement;

2/ non discrimination among candidates on
grounds of nationality or any other criteria
not having to do with their qualification,
except in cases of preference specifically
provided for in this Proclamation;

3/ transparency and fairness of the criteria on the
basis of which decisions are given in public
procurement as well as of decisions in each
procurement;

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4/ accountability for decisions made and
measures taken with regard to public
procurement and property administration;

5/ careful handling and proper use of public
property.

6. International Obligations

1/ To the extent that this Proclamation conflicts
with an obligation of the Federal Government
under or arising out of an agreement with one
or more other states or with an international
organization, the provisions of that
agreement shall prevail.

2/ Where an agreement referred to in sub-article
(1) of this Article contains a preference or
preferences in favour of national and resident
bidders, the public body shall ensure that the
applicable preference or preferences are
clearly stated in the bidding documents.

7. Public Accessibility of Legal Texts

This Proclamation and the procurement and
property directives to be issued by the Minister as
well as other documents pertaining to public
procurement and property administration shall be
promptly made accessible to the public and
systematically maintained.

8. Responsibilities of Heads of Public Bodies
Public bodies shall have overall responsibility for
procurements they carry out and the property they
administer. In particular, the head of a public
body shall apart from those specified in the
directives to be issued by the Minister, have the
following responsibilities:

a) cause to be established an adequately staffed
unit for procurement and property
administration;

b) setup a procurement endorsing committee
which approves procurements of higher
value; it may also setup ad hoc evaluation
committee for complex procurement;

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c) ensure that staff and officials assigned in the
procurement and property administration and
those assigned as members of the
procurement endorsing committee receive
training to enable them acquire knowledge of
the content and application of this
Proclamation, the directives to be issued in
accordance with this Proclamation, the
procurement and property administration
manuals, the standard bidding documents and
other relevant forms;

d) ensure that the procurement of the public
body is preplanned and complies with
procurement principles enshrined in this
Proclamation;

e) ensure that the procurement department, the
procurement endorsing committee and other
sections of the public body involved in
procurement discharge their duties properly;

f) where necessary, enter into a contract with third
parties which support the public body in the
process of procurement;

g) ensure that property at the disposal of the
public body is used in such a manner as to
achieve economy and efficiency;

h) ensure that property at the disposal of the
public body is duly registered and traceable,
properly handled and looked after and
disposed off when it is no longer useful.

9. Duties and Responsibilities of Procurement
and Property Administration Unit
The procurement department in a public body
shall, apart from the responsibilities assigned to it
by the procurement directives and the job
description prepared by the public body have the
following duties and responsibilities:

a) execute public procurement in a perfectly
ethical and skillful manner;

b) carry out public procurement in accordance
with this Proclamation, the procurement
directives, the procurement manual , the
standard bid documents, the forms and the
procurement contract;

c) maintain complete record for each
procurement in accordance with Article 23 of
this Proclamation.

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10. Duties and Responsibilities of Procurement
Endorsing Committee
The procurement endorsing committee shall have
the following responsibilities:

a) ensure that public procurement is executed in
compliance with this Proclamation, the
procurement directives, the procurement
manual, the standard bid document and the
forms;

b) review and endorse procurements within the
financial limits set by the directive;

c) advise the head of the public office on
methods of achieving effective procurement.

11. Accountability
Procurement and property administration staff or
heads of procurement and property
administration units and members of the
procurement endorsing committee in public
bodies shall be accountable for their actions in
accordance with this Proclamation and the
directives to be issued by the Minister.

CHAPTER TWO
THE PUBLIC PROCUREMENT AND PROPERTY
ADMINISTRATION AGENCY

12. Establishment

1/ It is hereby reestablished the Public Procurement
and Property Administration Agency (hereinafter
referred to as the "Agency") as an autonomous
Federal Government organ having its own
juridical personality.

2/ The Agency shall be accountable to the
Minister.

13. Head Office

The head office of the Agency shall be in Addis
Ababa and may have branch offices else where as
may be necessary.

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14. Objectives of the Agency
The objectives of the Agency are:

1/ ensure the application of fair, competitive,
transparent, non-discriminatory and value for
money procurement and modern public
property administration;

2/ follow up compliance of public bodies with the
provisions of this Proclamation in conducting
procurement and administrator property at their
disposal;

3/ build the capacity of procurement and property
administration with in the Federal
Government;

4/ work for the prevalence of uniform and consistent
system of public procurement and property
administration at national level;

5/ endeavor to harmonize the system of public
procurement and property administration with the
internationally recognized standards.

15. Functions of the Agency

The Functions of the Agency are to:

1) advise the Federal Government on all public
procurement and property administration
policies, principles and implementation and
provide technical assistance to the regional
governments and city administrations;
2) monitor and report to the Minister the
performance of the public procurement and
property administration systems in the Federal
Government, initiate amendments on laws and
implementation system improvements;

3/ in collaboration with competent authorities
ensure the setting of training standards,
competence levels, certification requirements
and professional development paths of public

4/ prepare, update and issue authorized versions
of the standard bidding documents,
procedural forms and any other attendant
documents pertaining to procurement and

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5/ consider and decide on request from public
offices to deviate from the prescribed methods of
procurement, the standard bidding documents,
procedural forms and any other attendant
documents in effecting procurement or use other
systems or methods of disposing of public
property than those authorized by law;

6/ introduce an efficient system of listing under
which suppliers who are interested to
participate in public procurement are
registered; receives, reviews and records
applications by candidates for registered
supplier status and distribute the suppliers
list;

7/ review and decide on complaints submitted
by public bodies on the conduct of bidders or
suppliers, and send copies of such decision to
the concerned organs;

8/ maintains and distributes a list of suppliers
who by reason of having seriously neglected
their obligations under a public procurement
contract, or having provided false
information about their qualifications or
having committed the act of the kind referred
to in Article 16(3) and 32(2) of this
Proclamation have been debarred from
participating in public procurement by the
Agency;

9/ conduct audit to ensure that procurement and
property administration activities of public
bodies are in accordance with this
Proclamation and other documents governing
public procurement and property
administration;

10/ set up, develop, maintain and update a data
base that covers the entire spectrum of public

11/ develop policies and maintain an operational
plan on capacity building both for
institutional and human resource
development;

12/ establish and maintain institutional linkages
with entities working for the development of
a profession and related matters who have an
interest to participate in public procurement
and property administration;

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13/ undertake public procurement execution and
property administration research and surveys,
and establish cooperation in the area of
capacity building;

14/ administer and enforce compliance with all the
provisions of this Proclamation, regulations and
directives to be issued in accordance with this
Proclamation and other functions given to it by the
Minister;

15/ submit quarterly and annually report to the
Minister regarding the overall functioning of
the public procurement and property
administration system based on information
provided to it by public bodies and provide
such data as the Minister may request
regarding the nature and volume of public
procurement handled by each entity; as well
as on matters of property administration;

16/ provide office facilities and technical support
for the board established by this
Proclamation to review complaints of
candidates in public procurement and
disposal of public property and follow up the
implementation of the decisions of the board;

17/ cause any supplier barred by the decision of
competent authorities of a regional
government, from participating on
procurements of such region, not to
participate in procurements of federal public
bodies;

18/ set a standard for major items of public
bodies representing important fixed assets
and follow-up adherence to such standards.

16. Powers of the Agency

In the exercise of its functions, the Agency shall
have the power to:

1/ require any information, documents, records
and reports in respect of any aspect of the
public procurement process where a breach,
wrongdoing, mismanagement or collusions
has been alleged, reported or proven against
any public body;

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2/ summon witnesses, call for the production of
books of accounts, plans, documents and
examine witnesses and parties concerned on
oath;

3/ give warning to or suspend for a definite or
indefinite period of time from participating in
public procurement candidates, suppliers or
persons involved in the disposal of public
property where it proves that they have
offered a price higher than the market or
committed an act contravening the provisions
of this Proclamation and the directives to be
issued by the Minister;

4/ conduct audit on its own program or cause
audit to be conducted where it receives
allegations of misconduct warranting such
audit on a process of public procurement and

5/ upon the request of public bodies,
exceptionally and when justified on sound
grounds, may permit the use of a procedure
which is not consistent with the procedures
laid down by this Proclamation or the
procurement directive.

17. Organization of the Agency

The Agency shall have:

1/ a Director General and Deputy Director General to
be appointed by the Government; and

2/ the necessary staff.

18. Powers and Duties of the Director General

1/ The Director General shall be the chief executive
officer of the Agency and shall, subject to the
general directives of the Minister, direct and
administer the activities of the Agency.

2/ Without prejudice to the generalities of the
provisions of sub-article (1) of this Article,
the Director General shall:

(a) exercise the powers and functions of the
Agency specified under Articles 15 and
16 of this Proclamation;

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b) employ, administer and dismiss personnel of
the Agency in accordance with the Federal
Civil Service Proclamation;

c) prepare the work program and budget of
the Agency and implement the same
upon approval;

d) prepare and submit to the Minister
operational and financial report on the
activities of the Agency;

e) represent the Agency in all its relations
with third parties.

3/ The Director General may delegate part of
his powers and duties to employees of the
Agency to the extent necessary for the
effective management of the functions of
Agency.

19. Powers and Duties of the Deputy Director General

1) Subject to directions given from the Director
General, the Deputy Director General shall assist
the Director General in planning, organizing,
directing and coordinating the activities of the
Agency. assist the Director General in planning,
organizing, directing and coordinating the
activities of the Agency.

2) The Deputy Director General shall act on
behalf of the Director General in his absence.

20. Source of Budget

The budget of the Agency shall be allocated by
the Government.

21. Books of Accounts

1/ The Agency shall keep complete and
accurate books of accounts.

2/ The books of accounts and other financial
documents of the Agency shall be audited
annually by the Auditor General or by an
auditor designated by him.

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CHAPTER THREE
BASIC PUBLIC PROCUREMENT
PROCEDURES

22. Procurement Plan

1) Public bodies shall have to prepare an annual
procurement plan showing their procurement
for the concerned budget year and containing
such details as are stated in the directive to be
issued by the Minister.

2) The procurement plan to be prepared by
public bodies in accordance with sub-article
(1) of this Article, shall have to be approved
by the head of the public body concerned and
communicated to the relevant departments of
the public body and the Agency until Hamle
30 of the Ethiopian Calendar.

23. Records of Procurement

1/ Public bodies shall have to maintain records
and documents regarding their public
procurement for such period of time as is
determined by the directive to be issued by
the Minister from the date of concluding any
procurement proceeding Such informations
shall include the following:

a) a brief description of the goods works or
services to be procured;

b) the invitation to bid;

c) the names and addresses of suppliers that
submitted bids, proposals or quotations,
and the name and address of the winning
suppliers;

d) the evaluation criteria stipulated and
applied and a summary of the evaluation
and comparison of bids, proposals and
quotations received;

e) information on the proceeding of any
decision rendered where a complaint
against a procurement process is lodged;

f) the grounds for using a procurement
procedure other than open bidding.

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2/ The record concerning any proceeding shall
on request, and once the proceedings have
resulted in a contract or have otherwise been
terminated, be made available to candidates
who participated in the proceedings.
However, except when ordered to do so by a
competent court or other body authorized by
law and subject to the conditions of such an
order, the pblic body shall not disclose:

a) information if its disclosure would be
contrary to law, would impede law
enforcement, would not be in the public
interest, would prejudice legitimate
commercial interest of the parties or
would inhibit fair competition;

b) information relating to the examination
and evaluation of bids, proposals or
quotations and the actual content of bids,
proposals or quotations, other than in the
summary record form referred to in sub-
article (1)(d) of this Article.

24. Non-discrimination

Without prejudice to the provisions of Article 25
of this Proclamation, candidates shall not be
discriminated against in the proceeding of public
procurement on the basis of nationality, race or
any other criterion not having to do with their
qualifications.

25. Preference

1/ A preference margin which shall be
determined by a directive to be issued by the
Minister for goods produced in Ethiopia, for
works carried out by Ethiopian nationals and
for consultancy services rendered by
Ethiopian nationals be granted in the
evaluation process.

2/ In addition to the preference provided for in
sub-article (1) of this Article, further
preference of such margin as to be
determined by the directive to be issued by
the Minister may be allowed for small and
micro-enterprises established in accordance
with Small and Micro-Enterprises
Proclamation.

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T[< <
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3/ Where in the evaluation of bids for
procurement of goods, services or works
equal percentage points are resulted for
bidders offering similar price and quality,
preference shall be given to local goods,
services or companies.

4/ For the purpose of sub-article (1) of this
Article any good to which more than 35% of
the value added occurs in Ethiopia shall be
deemed as one which is produced in
Ethiopia.

26. Form of Communications

1) Communications between candidates and
public bodies shall be in writing. Any
communications not made in written form
shall be subsequently referred to and
confirmed in writing.

2) Subject to necessary safeguards with regard
to authenticity and confidentiality, and when
technical conditions so permit, the Minister
may issue a directive to determine the extent
by which communication by electronic
means may be used in addition to or instead
of writing.

27. Language

1) Except where a procurement proceeding
involves international bidders, for national
bids in which only local bidders participate,
the bid document shall be prepared and the
bid process shall be conducted in the
Amharic language. However, if it is found to
facilitate the procurement process, the public
body concerned may authorize the use of
English language in the preparation of bid
documents and bid proposals in a national bid
in which only local bidders participate,
provided that such an act is not prejudicial to
fair competition.

2) For procurement to be conducted by means
of international competitive bidding, all
documents shall have to be prepared in
English language.

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28. Qualification of Candidates

1/ In order to participate in public procurement,
candidates must qualify by meeting the
following criteria and such other criteria, as
the public body considers appropriate under
the circumstances:

a) that they possess the necessary
professional and technical qualifications
and competence, financial resources,
equipment and other physical facilities,
managerial capability, experience in the
procurement object, reputation, and the
personnel, to perform the contract;

b) that they have the legal capacity to
enter into the contract;

c) that they are not insolvent, in receivership,
bankrupt or being wound up, their business
activities have not been suspended, and
they are not the subject of legal
proceedings for any of the foregoing;

d) subject to the directives to be issued by
the Minister, that they are registered in
the suppliers list;

e) that the period for which they were
suspended from participating in public
procurement is over;

f) that they have renewed trade license
and fulfilled their obligations to pay
taxes according to Ethiopian tax
laws;

g) that they have a bank account.

2/ The public body may require candidates to
provide such appropriate documentary
evidence or other information as it may deem
useful to satisfy itself that the candidates are
qualified in accordance with the criteria
referred to in sub-article (1) of this Article.

3/ Any requirement established pursuant to this
Article shall be set forth in the bid documents
or other documents for solicitation of
proposals, and shall apply equally to all
candidates.

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4/ The public body shall evaluate the
qualifications of candidates in accordance
with the criteria and procedures set forth in
the documents referred to in sub-article (3) of
this Article.

5/ The public body shall disqualify a candidate
who submits a document containing false
information for purposes of qualification; it
shall disqualify a candidate if it finds at any
time that the information submitted
concerning the qualifications of the candidate
was materially inaccurate or materially
incomplete.

29. Technical Specification

1/ Technical specifications and descriptions
laying down the characteristics of the goods,
works or services to be procured shall be
prepared for the purpose of providing a
correct and complete description of the object
of procurement and for the purpose of
creating conditions of fair and open
competition between all candidates.

2/ The technical specifications shall clearly
describe the public bodys requirements with
respect to quality, performance, safety and
where necessary dimensions, symbols,
terminology, packaging, marking and
labeling or the processes and methods of
production and requirements relating to
conformity assessment procedures.

3/ Technical specification prescribed by public
bodies shall, as far as possible:

a) be in terms of performance rather than
design or descriptive characteristics;

b) be based on national standards, where
such exist, or otherwise on
internationally recognized standards or
building codes;

c) inviting open competition and devoid of
any statement having the effect of
restricting competition.

48)&6

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4877

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/
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S

" "" ". .. . [ [ [ [' S] Gdw ' S] Gdw ' S] Gdw ' S] Gdw
Tp[u= Tp[u= Tp[u= Tp[u= }K? S<K< uS<KM eI} SS< }[-

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^ h
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L }kS< p} Se
` TTEK< c=J

S/ u[ k[u< p} =
c=< T>c^ [ uT<
}hK T> SJ< c=
U

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c< T> S
u?~ K< < u uL
c=J S u?~
u~ M K?L U TTE
L TM c=J

[/ }] "N?
KTv uSSd^< um
<` KS[< c=[

4/ There shall be no requirement or reference in
the technical specifications to a particular
trademark or name, patent, design or type,
specific original producer or service provider,
unless there is no sufficiently precise or
intelligible way of describing the
procurement requirements of the public body
and provided that words such asor
equivalent are included in the specifications.

30. Rejection of Bids, Proposals and Quotations

1) Public bedies may for one or more of the
following reasons reject in whole or in part
bids, proposals or quotations at any time
prior to the conclusion of procurement
contract where:

a) there is proof of error in the procurement
proceeding which could affect the
outcome of the bid;

b) it is ascertained that the procurement has
no use in enabling the public body to
obtain a better technical or economic
advantage as a result of a change of work
plan or another alternative representing a
better option to meet the requirement of
the public body;

c) bidders fail to meet the minimum criteria
set forth in the bid document;

d) the minimum price offered in the bid
does not match with the market price
circulated by the Agency and the public
body expected that it can get a better
price advantage by re-advertising the
bid;

e) the price offered by the successful bidder
exceeds the budgetary allocation made
for the procurement and the public body
cannot make up for the deficiency from
any other source;

f) it is proved that the bidding is not
sufficiently competitive as a result of
connivance among candidates.

48)&7

st

4878

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hm' J h

3/ [< e ?K?a>e ?K?a>e ?K?a>e

T>>e\ qu= M
S =J KT[ =M H>~
u?K?a> =U K=`
LM I Y^ L TM
=M:-

1/ ?c=< ]~ KUu
[ }S J u?
K?a> S[ M<< S
U c^` uT k`vM

2/ ?c=< uSY SY] u?
pû= u}q] "KA
c^\ KS}u` T>eM pU
S\ [M

3/ T>>e\ k[u< u?K?}a>
S[ M<< SU
c^` uSS`S` nL
SY SY] u?
pû= c^` pU
u?K?a>e S[ M<<
KSU < wKA c=U
}u=< c^` e` uS`
Y`~ u}c =J
K=` LM::

2) Public bodies shall have to give notice to
candidates forth with disclosing the reasons
for rejecting bids, proposals or quotations
wholly or partially in accordance with sub
article (1) of this Article. However, they shall
not be required to justify the reasons.

3) If the decision to reject all bids results before
the opening date and time, the bids received
shall be returned unopened to the candidates
submitting them.

4) The procuring entity shall incur no liability
towards candidates solely by virtue of its
invoking sub-article (1) of this Article.

31. Electronic Procurement

To achieve economy, transparency and
modernization in public procurement, the
Ministry may authorize the use of electronic
means as a method of procurement. In order to
implement this:

1) the Agency shall conduct a study and submit
proposal on a system of conducting procurement
by means of electronic exchange of information
which is appropriate to the level of development
of the country;

2) the Agency shall ensure that public bodies,
suppliers and supervising entities develop the
capacity required to implement the system;

3) upon due consideration of the proposed system of
effecting procurement by means of electronic
exchange of information and where he is satisfied
that the overall system and capacity of public
bodies and suppliers allows the carrying out of
procurement through electronic exchange of
information, the Minister may authorize the
implementation of the electronic system in all or
certain public procurement proceedings by
establishing the appropriate framework for the
operation of the proposed electronic system.

48)&8

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4879

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<U e h
U e KSe nM h
U Y^ M U K?L
T<U w K< `
U MKA h!

32. Rules of Ethics in Public Procurement and
Property Administration

1) Subject to the details to be specified in the
directive to be issued by the Minister,
personnel engaged in public procurement or
property administration shall have to observe
the following rules of ethics in the discharge
of their duties:

a) the obligations to notify any actual or possible
conflict of interest and isolate oneself from
any processes involving such conflict;

b) to give candidates and suppliers equal
opportunity of competition and
performance;

c) keep in secret any confidential information
concerning the public body, candidate or
supplier which he/she came to know on
account of his/her duty;

d) to reject any gift or offer of an
employment opportunity or anything of
monetary value or service;

e) to report to the law enforcement agencies
any intended or completed action of
corruption and contribute to the effort to
fight corruption and malpractice;

f) demonstrate concern to public resource
and property.

2) Any candidate or supplier shall have to refrain
from any act contravening the process of
public procurement and property disposal.
Without prejudice the provisions of Chapter
Fifteen of this Proclamation, any candidate or
supplier shall have the responsibility:

a) with an intention to influence the
decision or action of the head or staff
member of the public body or persuade
the public body to change its established
practice of procurement and property
disposal, not to give directly or indirectly
gifts of any kind in the form of
inducement, not to promise to give gifts,
not to offer employment opportunity or
anything of monetary value or service;

48)&9

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4880

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b) with an intention to mislead a procurement
proceeding not to present a falsified
document or not to withhold information
he/she should have disclosed;

c) not to connive with another candidate in
an act of false competition in order to
get unfair advantages;

d) to report to the law enforcement agencies
any intended or completed action of
corruption which he came to know
during the procurement proceedings and
contribute to the effort to fight
corruption and malpractice.

33. Methods of Procurement

1) The following methods shall be used in
public procurement:

a) Open Bidding;

b) Request for Proposals;

c) Two stage Tendering;

d) Restricted Tendering;

e) Request for Quotation;

f) Direct Procurement.

2) Except as otherwise provided in this
Proclamation, public bodies shall use open
bidding as the preferred procedure of
procurement.

3) Public bodies may use a method other than
open bidding only where conditions for use
of such other method stipulated under this
Proclamation are satisfied.

4) Public bodies shall not split procurement
requirements for a given quantity of goods,
works or services with the intention of
avoiding the preferred procurement
procedure stated under this Proclamation or
in the procurement directive.

48)'

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4881

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34. Public Private Partnership

The Minister may issue directive prescribing the
rules governing the formation of Public Private
Partnership and the modes of implementation of
such partnership.

CHAPTER FOUR
PROCEDURE OF OPEN TENDERING

35. Advertisements

1) Invitation to bid shall be advertised in at least
one times in a national news paper of general
circulation which is published in the
language the bidding document is prepared.

2) Where the public body finds it necessary, it
may, in addition to the medium mentioned in
sub article (1) of this Article, advertise the
bid on a national radio and television.

3) The time allowed for preparation of bids shall
not be less than the minimum number of days
stated in the procurement directives.

36. Invitation to Bid

Apart from containing the following particulars, the
invitation to bid shall be prepared in accordance with
the standard bidding document to be developed by the
Agency:

a) the name and address of the public
body;

b) a brief description of the goods, works or
services to be procured;

c) the means and conditions for obtaining
the bidding documents and the place
from which they may be obtained;

d) the place and deadline for the submission
of bids; and

e) the place and time for opening of bids,
along with an announcement that bidders
or their representatives are allowed to
attend at the opening of bids.

48)'1

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4882

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37. Bidding Documents

The bidding documents shall contain sufficient
information to enable competition among the
bidders to take place on the basis of complete,
neutral and objective terms. In particular, bidding
documents must include:

a) instructions for the preparation and
submission of bids;

b) information about the final date for receipt of
bids, the address to which bids must be sent,
the date, hour and place of opening, as well
as an announcement that bidders or their
representatives are allowed to attend the
opening ceremony;

c) bid submission forms and, where applicable,
forms of bid security to be provided;

d) the number of copies to be submitted with the
original bid;

e) the general and specific conditions of the
contract;

f) specification of requirements, including time
limit for delivery or completion of the task,
as appropriate;

g) evidence to be provided by the bidder to
demonstrate its qualifications as well as its
fiscal and legal standing;

h) the period during which the bid remains in force;

(i) the criteria and the points given to each
criterion for evaluation of bids and award of
the contract;

(j) a reservation to the effect that the public
body may reject all bids at any time prior to
the notification of award; and

48)'2

st

4883

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2/ [ c [?
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[e vK< e^ k u[
Tem< u}K< "D%E K
}] =è S[ K-
u

3/ SY SY] u?~ n"0T uS
)1d ru; 1& 11 LJ8c
n1 )Â
V V V V "9 "9 "9 "9 u[ u[ u[ u[ c L eKT>[ Thh c L eKT>[ Thh c L eKT>[ Thh c L eKT>[ Thh

1/ SY SY] u? u^dkù< o
Sh c Tp[u= >?
w TK u [ c
KThhM LK<::

2/ }[< Thh uO }
[ c K< }]-
0<K<
Ku::

3/ SY SY] u?~ [
c ThhM eL> J
< uThh< }SK~
Te}" KT[ um >? K?K
SJ< }[ J }]-
Thh< SW[ `<
[ c KT um >?
=^< KT[ <
vI` SW[ uT[ [<
Tp[u= >? K}c< k K=Û
LM::

(k) the price adjustments that may be made
during contract implementation and the
conditions and the manner under which such
price adjustments can be made to special
procurements prescribed by the Minister.

38. Provision of Bidding Documents

1) Bid documents shall be made available to
candidates at a price not exceeding the cost
of reproduction and delivery of such
documents to candidates.

2) The bidding document shall be delivered to
candidates on working days between the date
of publication of the invitation to bid and the
closing date of the bid and in the manner
specified in the invitation to bid.

3) Where it deems it to be appropriate the public
body may make the bidding document
available to candidates free of charge.

39. Modifications to Bidding Ddocuments

1) At any time prior to the deadline for submission of
bids, the public body may, on its own initiative or
in response to an inquiry by a candidate having
purchased the bidding documents, modify the
bidding documents by issuing an addendum,
which becomes an integral part of the bidding
documents.
2) Any addendum shall be communicated
promptly to all candidates having purchased
the bid documents at the same time.

3) If the public body considers it necessary to
amend the bidding documents and if it
determines that there is no enough time to
incorporate the modification, it may postpone
the closing date by a number of days,
depending on the procurement object, which
is sufficient to enable the bidders to take the
addendum into account in preparing their
bids.

48)'2
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4884

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[ Teu]< S u[<
L u}VL< G<@ Td}
KTek[ T>eM J S

2/ U nJ1 J0n nJ1 /1/ r11n0d
SC9 ru; nh) n)T
r)nA"01d r"+ LS
ru; Tnh)< ~mJ ;n1
)d^d ~~) eM

3/ [ Teu]< uT>qu
>? <e }^ ^c< <\
"KK U g< }^
uT>SK g~ }KK u%EL
<K< KS[U n J "M}
U =k`w }k< <M
Teu] "Lk[u [ Teu]<
<è [M::

#1 #1 #1 #1. .. . S[ c eKTp[w eKSkuM S[ c eKTp[w eKSkuM S[ c eKTp[w eKSkuM S[ c eKTp[w eKSkuM

1/ S[ c uO }
}`Vu ug ?yKA <e
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}< >? w u u}K< x
u= S[ Ku::
2// S[ c Mp uSJ< u[
X <e K=kS TM J
'J SY SY] u?~
u= }[u
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3/ nJ1 J0n nJ1 /2/ '-
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#2 #2 #2 #2. .. . [ [ [ [ eKS eKS eKS eKS

1/ SY SY] u?~ u[
c }SK}< S[ c
Tp[u= }c< >? w -
}kk =<<' S[ c
Tp[u= >? w u
S[ cJ S Ku::

40. Bid Security
1) Public bodies shall include in the bidding
documents a condition that bids must be
accompanied by a bid security. The amount
of such bid security shall be sufficient to
discourage irresponsible bidders.

2) Notwithstanding the provision of sub-article
(1) of this Article, procurement in respect of
which bid security is required and the
amount of bid security thereof, is to be
prescribed by the directive to be issued by the
Minister.

3/ A bid security will be forfeited if a bidder
withdraws his bid within the validity period
thereof or in the case of a successful bidder,
if the bidder repudiates the contract or fails to
furnish performance security, if so required.

41. Submission and Receipt of Bids

1/ Bids shall be submitted in writing, signed and
in a sealed envelope, to the place and before
the deadline stated in the invitation to bid.

2/ The public body shall give a receipt to the
bidder indicating the time and date on which
the bid document was submitted, where it
becomes impossible to put the bid document
in a bid box due to its large size.
3/ Without prejudice to the provisions of sub-
article (2) of this Article, a bid document
recieved after the deadline for submission
shall be returned unopened to the bidder.

42. Opening of Bids

1/ At the time stipulated in the bidding
document for opening of bids, which should
follow immediately after the deadline for
submission of bids, the public body shall
open all bids received before the deadline.

48)'4
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4885

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S[ vK U Suw
SSw =G? }Su< `` =<
S[ Ku::

3// / u=I k <e k /2/
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S] Gdw uG<K e k[u
uT>Ju >? S[ <
T>uu< > UT< }-
kk u%EL JM::
#3 #3 #3 #3. .. . S[ c eKSS`S` S[ c eKSS`S` S[ c eKSS`S` S[ c eKSS`S` eKS eKS eKS eKS
U U U UU UU U

1/ [< KSS`S` UT<
KT T>[ J c=' S-
Y SY] u?~ }^ vk[u<
S[ c L Tw^] J
c< K=p LM:: JU
K< Ua S[ c L
SW[ K< T>eM Gdw
Tp[w U Sk MU::

2/ u=I k <e k // }S-
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u?~ u[ U`S^dw eI} KT[U LM::
SY SY] u?~ =I
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Lk[u< }^ u SK
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3/ / hJ J hJ // -
J S J
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m
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4/ u[< c }[\ vI]'
<M nKA' G<@ K?KAU
}L> x ` u}c [ M
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eI} U u=[<U S
Y SY] [< }TEL
À K=kuM LM:: T<U M
e}K [e uG }M u[
UT <` p U <e
Sv Ku::

2/ The name of the bidder and the total amount
of each bid, discounts offered and any such
information as the public body deems
necessary to let the bidders know their
relative rank shall be read out aloud and
recorded and a copy of the record shall be
made available to any bidder on request.

3/. Notwithstanding the provisions of sub
article (2) of this Article, the envelope
containing the price offered by the bidder
shall be read after the evaluation of the
technical proposal where technical and
financial proposals are submitted in two
separate envelops.

43. Examination and Evaluation of Bids

1) The public body may ask bidders for
clarification of their bids in order to assist in
the examination and evaluation of bids;
however, no change in the substance of the
bid, including changes in price, shall be
sought, offered or permitted.

2) Notwithstanding sub-article (1) of this
Article, the public body shall correct
arithmetical errors that are discovered during
the examination of bids. The public body
shall give prompt notice of any such
correction to the bidder that submitted the
bid.

3) Without preicdice to sub-article (4) of this
Article, the public body may regard a bid as
responsive only if it conforms to salient
requirements set forth in the bidding
documents.

4) The public body may regard a bid as responsive
even if it contains minor deviations that do not
materially alter or depart from the characteristics,
terms, conditions and other requirement set forth
in bidding documents or if it contains errors or
oversights that are capable of being corrected
without touching on the substance of the bid. Any
such deviations shall be quantified, to the extent
possible, and appropriately taken account of in the
evaluation and comparison of bids.

48)'5
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4886

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u[ c M}SK} T]
Se` upU L K=<M
MU::

7/ / S1d9 1~ ~~! 1& h1~-
nh1d dO u;d nS n~uJ
)1dJ r~~! 1, LJ8nd
d)9 )1dJ r~d&x) AT LJ8-
)A d)9 )UJJ n~09 "x;
LJ810 nmr1 d)9 n1x n)A9

8/ u[ g J T>S[<-

G/ u[ UT > SS-
TTEL~ }[ e-
} k[u }^
K/ SY SY] u?~ u[-
< c <e g< }-
^ T>S[u Se`
K J' u[ c W[
< [< =T> c?
T>e< Se` SW[
uT[ uT>"H@ UT }
hK =T> kT@ K<
[ Ndw k[u< }^
g JM:: JU Se`~
u}v G<@ L }SW[}'
u K=K T>M J
uUT< H> ^ w
T>c< e}K [e u
w T>K SJ Ku

5) Any public body shall not award a contract
when:

a) the bidder has failed to demonstrate, in
the manner provided in Article 28(1) of
this Proclamation, that it is qualified;

b) the bidder does not accept a correction
of an arithmetical error made pursuant to
sub-article (2) of this Article;

c) the bid is not responsive.

6) In the process of selecting the successful
bidder, the public body shall only consider
substantially responsive bids for further
evaluation and comparison, as defined in sub-
article (8) of this Article in accordance with
the criteria set forth in the bidding
documents. No criterion shall be used that
has not been set forth in the bidding
documents.

7) No bidder may be required to change the
price offered in his bid or otherwise modify
his proposal or to assume obligation to do so
except as set forth in the bidding document.

8) The successful bid shall be:

a) the bid that is found to be responsive to
the technical requirements and with the
lowest evaluated price;

b) if the public body has so stipulated in the
bidding documents, the bid offering
better economic advantage ascertained
on the basis of factors affecting the
economic value of the bid which have
been specified in the bidding documents,
which factors shall, to the extent
practicable, be objective and
quantifiable, and shall be given a relative
weight in the evaluation procedure or be
expressed in monetary terms wherever
practicable;

48)'6
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4887

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9/ SY SY] u?~ UT<
<? u\ T>M UT
]` T Ku::

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[< }}u >? e [
U`S^' Tw^]' UT g<
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Kv< c=J' g< }^ eT>K
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1/ SY SY] u?~ g<
}^ ` [ c L
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vL< < L SY SY]
u?~ g< }^ ` ``
T[ MU

#6 #6 #6 #6. .. . g eKSK <M eKS^[U g eKSK <M eKS^[U g eKSK <M eKS^[U g eKSK <M eKS^[U

1/ SY SY] u?
' T>qu
k TK u u[< g KJ<
}^ g~ SK Kv<::
g SK Tem< <K<
T>[Uu k T>M JM::
u[< }g KJ< }Û
g< eU }gu U
T>M Tem m K=`d<
vM::

2/ uSY SY] u?~
upû=< S"M <M }Se`M
T>vK< uG<K~ }
eUU }[cv< <
uS<K< T>< <M c c=[U
JM::

c) where it is ascertained in post evaluation of
bids that the legal, financial and technical
standing of the candidate selected as the
successful bidder in accordance with
paragraph (a) or (b) of this sub-article
conforms to the requirements stated in the
bidding document.

9) The public body shall prepare an evaluation
report, containing a summary of the
examination and evaluation of bids.

44. Process to be Confidential

After the opening of bids, information relating to
the examination, clarification, and evaluation of
bids and recommendations for award must not be
disclosed to bidders or other persons not officially
concerned with this process until the award of the
contract is announced.

45. Matters subject for Negotiation with the
Successful Bidder

1) The public body may negotiate with the
successful bidder on matters of contract
performance not dealt within the bidding
document.

2) Except in a single source procurement
provided for in Article 50 of this
Proclamation the public body may not
negotiate on the price offered by the
successful bidder and on other issues related
to price.

46. Notification of Award and Signing of Contract

1) Prior to the expiry of the period of bid validity, the
public body shall notify the successful bidder that
its bid has been accepted. The notification of
award shall specify the time within which the
contract must be signed. The unsuccessful bidders
shall also be informed as to who the successful
bidder is and why they have lost the bid.

2) The existence of a contract shall be
confirmed through the signature of a contract
document incorporating all agreements
between the parties.

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uSY SY] u?~ L KT>`c<
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<e [ <e [ <e [ <e [

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G<@ G<@ G<@ G<@

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SU T>K< T>}K<
G<@ c=TEK< w <:-

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J

3) The contract shall not be signed by the public
body prior to the receipt of the notice by the
unsuccessful bidder and before the period
specified in the directive to be issued by the
Minister has lapsed.

4) The procedures that public body has to follow
in administering the contract shall be
prescribed by a directive to be issued by the
Minister.

47. Contract Security

A supplier shall provide the public body with a
contract security to make good any damage the
public body may sustain as a result of default by
the supplier under the contract. The type of
procurement for which contract security is
required and the type and amount of contract
security shall be determined by a directive to be

48. Advance Payment

1) The amount of advance payment that may be
allowed to suppliers in public procurement
and the manner in which it is made available
shall be determined by the directive to be

2) Advance payment may be effected only where
a supplier furnishes advance payment
guarantee in an amount equal to the advance
payment.

CHAPTER FIVE
RESTRICTED TENDERING

49. Conditions for use of Restricted Tendering

Public bodies may use restricted tendering as a
method of procurement only where the following
conditions are satisfied:

1) it is a ascertained that the required object of
procurement is available only with limited
suppliers;

2) the cost of procurement does not exceed the
threshold specified in respect of restricted
tendering in the directive to be issued by the
Minister; or

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<e [ Y` M [
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3/ K c T>k<
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4/ SY SY] u?~ J
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eM SJ KSJ< eM::

3) where a repeated advertisement of the
invitation to bid fails to attract bidders in
respect of a procurement subject to the
directive to be issued by the Minister.

50. Procedure for Restricted Tendering

Restricted tendering procedures are the same as
those applied in open tendering, except that:

1) where the object of procurement is available
only with limited suppliers in accordance
with Article 49(1) of this Proclamation the
invitation to bid shall be sent to all such
suppliers;

2) if restricted tendering is used for the reason stated
in Article 49 sub-articles(2) or (3) of this
Paroclamation, the invitation to bid shall as far as
possible be sent to limited suppliers chosen from
among those registered in the suppliers list on the
basis of the following consideration:

a) any selection shall allow opportunities
for suppliers on the list,

b) the number of suppliers to whom the
invitation to bid is sent shall be such that
it is sufficient to ensure effective
competition and shall not as far as
possible be less than five compitators.

3) the time allowed for preparation of bids shall
not be less than the minimum number of days
stated in the procurement directive for this
method of procurement. However, if all
suppliers invited to participate in the bid have
submitted their bids before the closing date,
the public body may open the bid ahead of
schedule by giving bidders prior notice;

4) if the public body uses restricted tendering for
the reason stated on Article 49(1) of this
Proclamation, it shall determine whether it is
necessary to require the candidates to submit
bid security.

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Kv< G<@ Kv< G<@ Kv< G<@ Kv< G<@

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pû= SU T>K< T>-
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CHAPTER SIX
DIRECT PROCUREMENT

51. Conditions for use of Direct Procurement

1) Public bodies may use direct procurement
only where the following conditions are
satisfied:

a) when in absence of competitions for
technical reasons the goods, works
consultancy or other required services
can be supplied or provided only by one
candidate;

b) for additional deliveries of goods by the
original supplier which are intended
either as parts of replacement for
existing supplies, services or
installations or as the extension of
existing supplies, services or installation
where a change of supplies would
compel the public body to procure
equipment or services not meeting
requirements of interchangeability with
already existing equipment or services;

c) within limits defined in the procurement
directive, when additional works, which have
been not included in the initial contract have,
through unforeseeable circumstances,
become necessary since the separation of the
additional works from the initial contract
would be difficult for technical or economic
reasons;

d) within limits defined in the procurement
directives, for new works consisting of
the repetition of similar works which
conform to a basic project of which an
initial contract has been awarded on the
basis of open or restricted bidding;

e) within limits defined in the procurement
directives, for continuation of consultant
services, where the original contract has
been satisfactorily performed and the
continuation is likely to lead to gains in
economy and efficiency;

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n0~ "+P dA ~11A
nn^l n)uJ9

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S"M M KS` ex pU L
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f) the head of the public body has
determined that the need is one of
pressing emergency in which delay
would create serious problems and
therefore injurious to the performance of
that public body;

g) where situations arise in which shopping
becomes necessary to meet the special
procurement needs of public bodies. The
manner of implementation of this
provision shall be prescribed by the
directive to be issued by the Minister;

h) for purchase of goods made under
exceptionally advantageous conditions
which only arise in the very short term.
This provision is intended to cover
unusual disposals by firms, which are
not normally suppliers. It is not intended
to cover routine purchases from regular
suppliers.

2) Public bodies may use direct procurement
when the contract price does not exceed an
amount stated in the procurement directive.

3) It shall not be necessary to conclude a
contract in respect of direct procurements
effected in accordance with sub-articles (1)
(g) and (2) of this Article.

4) Public bodies shall ensure that this method is
not resorted to with a view to avoiding
possible competition or in a manner which
would constitute a means of discrimination
among candidates.

52. Procedure for Direct Procurement

1) When the public body engages in direct
procurement according to Article 51(1) of
this Proclamation, it shall prepare a
description of its needs and any special
requirements as to quality, quantity, terms
and time of delivery, and shall be free to
negotiate on price and conditions of offer
with the sole candidate. Without prejudice
to the provisions of sub-article (3) of
Article 51 of this Proclamation, any
agreement reached to conduct the
procurement shall be confirmed by a
contract signed by both parties.
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0m Z
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$4 $4 $4 $4. .. . 0m SJ 0m SJ 0m SJ 0m SJ Z
h h h h

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2/ 0m
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3/ 0m J
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N/ 1 J
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h -
h -
S1 h1S J-
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1J

2) The salient points to focus on in the
negotiation of contracts for direct
procurements shall be approved by the
head of the public body concerned and
communicated to the negotiators.

CHAPTER SEVEN
REQUEST FOR PROPOSALS

53. Conditions for use of Request for Proposal

Public bodies may engage in procurement by
means of request for proposals when it seeks to
obtain consultancy services or contracts for which
the component of consultancy services represents
more than 50% of the amount of the contract.

54. Procedure for Request for Proposals

1) The selection of candidates for consultancy
services above a threshold to be determined
by a directive shall be made after inviting
candidates to submit expression of interest.

2) Requests for proposals shall be addressed to
not less than three and not more than seven
candidates selected by the public body.

3) A request for proposals shall contain at least
the following information:

a) the name and address of the procuring
entity;

b) description of the services required,
normally through terms of reference;

c) in the case of consultancy assignments
which may involve potential conflicts of
interest, a reminder that candidates for
such assignments must exclude
themselves from procurement of goods
and works which may follow as a result
of or in connection with the
consultancy agreement;

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6/ J -
hS'
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U^ U^ U^ U^ eU eU eU eU
u u u u Tp[u= T>U Tp[u= T>U Tp[u= T>U Tp[u= T>U

$ $$ $5 55 5. .. . u Tp[u= KT>U STEL u Tp[u= KT>U STEL u Tp[u= KT>U STEL u Tp[u= KT>U STEL
Kv< G<@ Kv< G<@ Kv< G<@ Kv< G<@

J 1
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Z ' Jm
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$6 $6 $6 $6. . . . u Tp[u= T>"N? U u Tp[u= T>"N? U u Tp[u= T>"N? U u Tp[u= T>"N? U

1/ J
' h1
h1
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d) the criteria for evaluating the proposals,
the relative weight to be given to price
and other criteria, and the manner in
which they will be applied in the
evaluation of proposals;

e) place and deadline for the submission of
proposals.

4) Candidates shall be given adequate time in
which to prepare their proposals; such time
frame shall be determined by the directive to
be issued by the Minister.

5) The public body may negotiate with the first
ranked candidate with respect to the nature,
volume and organization of the services
included in their proposals.

6) Any award by the public body shall be made
to the candidate whose proposal is most
advantageous, determined in accordance with
the criteria and procedures for evaluating
proposals set forth in the request for
proposals.

CHAPTER EIGHT
REQUEST FOR QUOTATION

55. Conditions for use of Request for Quotations

means of request for quotations for the purchase
of readily available goods or for procurement of
works or services for which there is an
established market, so long as the estimated value
of the contract does not exceed an amount stated
in the procurement directive to be issued by the
Minister.

56. Procedure for Request of Quotations

1) Public bodies shall request quotations from
as many candidates as practicable, but from
at least three, if possible from among
suppliers registered in the suppliers list.

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"+ T^ pû= e"K< [e
1x,, 1d? n1P w
uSu T` MU::
uSJU T>U T>U T>U

$7 $7 $7 $7. .. . uG<K uG<K uG<K uG<K [ [ [ [ [ [ [ [ KSU STE KSU STE KSU STE KSU STE
L Kv L Kv L Kv L Kv< G<@ < G<@ < G<@ < G<@

J u
ZJ
uz " m '-
1/ S h

S " hJ
J
J S
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2/ "+d rhYxd
J n91 d)9
r9C9C LS rA1 dOPJ n~1h1
LnhAu1 n r~J".1 ~.) 1
r9C9C r~h rS1 LS rA1
.PJ nhSdJ r)nA dA
~09 A"

2) In cases where procurements are made using
request for quotation, as long as other
suppliers, who can supply the same goods,
services or works are available, the public
body shall not repeatedly invite the same
suppliers to submit their quotations. The
public body shall ensure that equal
opportunity of participation in public
procurement is given to all candidates
engaged in the business.

3) The request shall contain a clear statement of
the requirements of the public body as to
quality, quantity, terms and time of delivery
of the goods, works, consultancy or other
services as well as other special
requirements.

4) The public body shall give adequate time to
candidates in which to prepare their
quotations.

5) A purchase order shall be placed with the
candidate who meets the requirements of the
public body stipulated in sub- article (3) of
this Article.

CHAPTER NINE
TWO - STAGE BIDDING

57. Conditions for use of Two-Stage Bidding

means of two-stage bidding:

1) when it is not feasible for the public body to
formulate detailed specifications for the
goods or works and in the case of services, to
identify their characteristics and, in order to
obtain the most satisfactory solution to its
procurement needs;

2) when the public body seeks to enter into a
contract for the purpose of research,
experiment, study or development, except
where the contract includes the production of
goods in quantities sufficient to establish
their commercial viability or to recover
research and development costs;

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1d&&P ,C CC "
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1/ S' u
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2/ SY SY] u?~ ~~)d
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s^71 nJ1C ~1919 110)11 )nd
r~d&x) AT )1 1~TJ
)n)A UJ d11 J
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1d&&P ,C n^11 r~d&x)
AT r1d&&PJ ru; ~A LS
r0n111 ~T1 mT4 d))1 n)xC"
)Â

3/ SY SY] u?~ ~~)d
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AT ^1 1~T d1
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~1 r~~! A01dJ LS ru;
nh) J m

3) where bid proceedings are initiated but no
bids are submitted as a result of the nature
of the object of procurement not being
clearly described or where all bids are
rejected due to failure on the part of the
public body concerned to draw up a clear and
complete specification;

4) because of the technical character of the
required goods or works, or because of the
nature of the consultancy or other services it
is necessary for the public body to negotiate
with the suppliers.

58. Procedure for Two-Stage Bidding

1) The solicitation documents shall call upon
suppliers to submit, in the first stage of the
two-stage bidding proceedings, initial tenders
containing their proposals without a tender
price. The solicitation documents may solicit
proposal relating to the technical, quality or
other characteristics of the goods, works or
services as well as to contractual terms and
conditions of supply, and where relevant the
professional and technical competence and
qualifications of the suppliers.

2) The public body shall identify responsive
bids by evaluating the proposals submitted by
the bidders at the first stage of the bid
proceeding against its requirements. The
public body may without prejudice to their
intellectual property rights at this stage hold
discussion with the candidates on the content
of their proposals.

3) The public body shall draw up a specification
which is more appropriate to its requirements
on the basis of the evaluation against the
requirements of the proposals submitted to it
at the first stage of the bid proceeding. It
shall then proceed to communicate the
revised specification to the candidates who
submitted responsible bids at the first stage
and invite such candidates to submit
proposals on the basis of the revised
specification.

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5/ 1nd TCTC ~1 Un-
11d C u; ~1s )An1
1~T 1dJ hd
"nA )^n

6/ SY SY] u?~ Un11d
C r1 1"J
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~1919 nSdJ )n)A
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h1

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KU k KU k KU k KU k dC r09 dC r09 dC r09 dC r09

$9 $9 $9 $9. .. . KU k KU k KU k KU k

1/ 1
J
Ju1
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2/ hJ J hJ /1/ J-
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Jm J
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m " 1 Z
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4) In formulating the revised specification in
accordance with sub article (3) of this
Article, the public body may delete or modify
any aspect, originally set forth in the
solicitation documents of the technical or
quality characteristics of the goods, works
or services to be procured and any criterion
originally set forth in those documents for
evaluating and comparing bids and for
ascertaining the successful bids and may add
new characteristics or criteria that conform
with this Proclamation. Any such deletion,
modification or addition shall be
communicated to suppliers in the invitation
to submit final bids.

5) A supplier not wishing to participate in the
second stage of tendering in accordance with
the reformulated specification may withdraw
from the proceeding.

6) The public body shall evaluate the bids
submitted at the second stage to ascertain the
successful bidder pursuant to the provisions
of Article 43 of this Proclamation.

7) The public body may engage in negotiation
with the first ranking bidder concerning any
aspect of its bid, except price.

CHAPTER TEN
INTERNATIONAL COMPETITIVE BIDDING

59. Open International Bidding

1) Open international bidding shall be used
whenever in national open bidding an
effective competition cannot be obtained
unless foreign firms are invited to bid or for
procurements above a threshold level for
national bidding to be determined by a
directive to be issued by the Minister

2) A procurement may be effected by means of
national competitive bidding notwithstanding that
the cost of the procurement exceeds the threshold
established in the directive for national bidding if
it is ascertained that the required object of
procurement is available only locally.

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4/ ;n1 )d^d ~~) ^) r-
1~md 1xT LJx1m1 uS nr"
xd r11~m U1;P n LS
rdO h0J)P LJ81v hA1x1
dm; ru1 dC nSC LJx-
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u? dnJ u; ~d&x) AT
~mr1) 1, 1) d)9 hnJ
n1 uT>U uSkU
< uKU k <` SU
LK<::

3) Open international bidding shall respect the
provisions of Chapter Four of this
Proclamation as well as the following
procedures:

a) the invitation to bid and the bid
documents shall be in the English
language;

b) the invitation to bid shall be advertised in
a news paper published in English
language which has world wide
circulation and attracts foreign
competition as well as on the Agencys
website in the manner prescribed in the
directive;

c) the time allowed for submission of bids
shall be sufficient for the invitation to
reach candidates and for enabling them
to prepare and submit bids. In any case it
shall not be less than the time prescribed
by the directive to be issued by the
Minister;

d) technical specifications of the goods, works
and services shall be compatible with
national requirements, and conform as far as
possible with international standards or
standards widely used in international trade;

e) candidates shall be permitted to express
their bids, as well as any security
documents to be presented by them in
Ethiopian Birr, or in a currency widely
used in international trade and stated in
the bidding documents;

f) general and special conditions of
contract shall be of a kind generally used
in international trade.

4) Without prejudice to the threshold to be
established in the directive to be issued by
the Minister and provided that conditions for
using other methods of procurement than
open bidding are satisfied, public bodies may
conduct procurement through international
competitive bidding by means of restricted
tendering, request for proposals, request for
quotation or direct procurement where it is
ascertained that it is impossible to carry out
effective procurement with out the
participation of foreign companies.
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CHAPTER ELEVEN
SPECIAL PROCUREMENT

60. Large Value Procurement

1) There shall be established a central body, which
shall be in charge of the execution of large value
procurements having national significance
procurements of supplies for which a demand is
shown by more than one public body and sale of
public property to be disposed off, by a regulation
to be issued by the Council of Ministers.

2) The Minister shall identify and update the
types of procurements to be executed on
account of their national significance by the
central body which shall be established
pursuant to sub article (1) of this Article.

61. Procedure of Framework Contract

1) Framework contracts may be used to fulfill
similar procurement requirements of various
public bodies or recurrent procurement
requirements of a public body.

2) The following procedure of framework
contract shall be followed to meet similar
procurement requirements of public bodies
within a given time frame:

a) the Agency shall undertake a survey of the
similar requirements of public bodies, issue a
list of goods and services constituting such
requirements and update the list regularly;

b) public bodies shall prepare a forecast of their
requirements of goods and services falling
under the list mentioned in sub-article (2) (a)
of this Article and communicate the same to
the body authorized to conduct large
procurements;

c) the body to be established in accordance
with Article 60(1) of this Proclamation
shall conclude and administer framework
contracts in the manner prescribed herein
and the directive to be issued by the
Ministry;

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d) public bodies shall on the basis of the
framework contract signed by the central
body of procurement conclude the
procurement by making order with the
suppliers of goods and services that they
require;

e) the order that public bodies place with the
suppliers for goods and services of their
requirements under the frame work contract
shall confirm to the terms of the framework
contract regarding price, terms of payment
and other matters related to the execution of
procurement.

3) Except in cases provided for in Article 37
paragraph (k) of this Proclamation, public
bodies shall not be allowed to vary unit
prices and such other fundamental terms of
the framework contract when placing order
for goods and services. However, the public
body and the supplier may agree on terms
that have not been dealt with in the
framework contract or that do not materially
affect the frame work contract.

4) The framework contract shall be awarded
through open bidding procedure and may
remain valid for three years.

5) In procuring goods and services under a
framework contract to fulfill their recurrent
requirements, public bodies shall have to
adhere to the criterion of fixing prices of
goods and services to be determined in the
directive to be issued by the Minister.

CHAPTER TWELVE
PUBLIC PROPERTY ADMINISTRATION

62. General

The head of each public body shall ensure that
property at the disposal of the public body is
properly handled, used and where necessary,
disposed off in accordance with the directive to be

63. Acquisition

1) All acquisitions of public property shall be for
the sole purpose of facilitating the delivery
and maintenance of approved programs as
efficiently and effectively as possible.

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2) The Agency shall account for, administer and
where necessary, dispose off property of the
Federal Government which are not
administered by any other public body.

64. Use and Maintenance

1) Heads of public bodies shall ensure that all
public property is used as productively as
possible in carrying out of the responsibilities
of the public bodies.

2) Heads of public bodies shall establish a
proper maintenance system for all public
property to ensure that it will operate as
economically and effectively as possible in
accordance with the directive to be issued by
the Minister.

65. Management of Public Property

1) The heads of public bodies shall adopt a life-
time approach to the management of public
property.

2) Heads of public bodies shall ensure that
items of public property are recorded as to
date, description, quantity and cost from
acquisition to the end of their life-time.

3) Heads of public bodies shall ensure that the
custodial responsibility for each fixed asset
acquired is assigned primarily to persons
using such fixed assets and that names of the
custodians, and the locations of the fixed
assets under their custody are recorded in the
register of fixed assets.

4) Heads of public bodies, shall ensure that
supplies, not acquired for immediate
consumption, shall form part of supply
inventories and that custodial responsibility
be assigned for such inventories.

5) All inventories of public property shall be
physically verified against records at least
annually.

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6) Where the actual cost of public property is
not determinable, its cost shall be estimated
in accordance with the directive to be issued
by the Minister.

7) Depreciation shall be calculated on fixed
assets in accordance with the directive to be

66. Protection and Preservation

The heads and all employees of public bodies are
responsible for the protection and preservation of
public property.

67. Disposal

1) Heads of public bodies shall ensure that fixed
assets which are not useful to the
organization are disposed off in the manner
to be prescribed in the directive to be issued
by the Minister.

2) The description and amount received from all
public property disposed off shall be included
in the public accounts.

3) Without prejudice to the provisions of the
directive to be issued by the Minister,
concerning the matter, proceeds from the
disposal of public property shall be deposited
into the account of the central treasury.

68. Deletion

1) Where public property is considered to be of
no use in the public body or elsewhere, and
has no- scrap value, it shall be deleted in
accordance with the directive to be issued by
the Minister.

2) Deletion of public property shall be recorded
when losses take place from inventory
shortages, destruction, theft or any other
reason.

3) The description and book value of all public
property deleted shall be included in the
public accounts in accordance with the
directives to be issued by the Minister.

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69. Transfer

The Minister shall determine by directive the
manner in which property which is not useful to
the Federal Government may be transferred gratis
to regional governments, city administrations or
any other body carrying on activities
complementing the responsibility of the
government.

CHAPTER THIRTEEN
ESTABLISHMENT OF THE BOARD REVIEWING
COMPLAINTS ON PUBLIC PROCUREMENT AND
PROPERTY ADMINISTRATION

70. Establishment of the Board

1) A body (hereinafter referred to as the
"Board") is hereby established which reviews
and decides on complaints lodged in regard
to public procurement and property disposal
proceedings.

2) The Board shall be accountable to the
Minister.

71. Board Members and Terms of Service

1) The Board shall be drawn from persons
representing the private business sector, the
relevant public bodies and public enterprises.

2) The Agency shall serve as the secretariat of
the Board.

3) The Minister shall appoint the members of the
Board. He shall determine the amount of
allowance to be paid to the members of the
Board and the mode of payment.

4) The term of service of members of the Board
shall be three years. However, any member
of the Board failing to properly discharge his
duty maybe replaced at any time before his
term of service expires.

72. Powers and Duties of the Board

1) The Minister shall issue and implement a
directive setting for the procedure the Board
has to follow in the exercise of its powers and
duties; such directive shall adhere to the
following general rules:

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a) the Board shall review and decide on
complaints from candidates or suppliers;

b) the Board may in the exercise of its
function require the production of
relevant documents and the testimony of
officials and employees of the concerned
bodies;
c) the Board may also seek professional
assistance from governmental or non-
governmental entities where it finds such
assistance to be useful in reviewing and
deciding on a complaint submitted to it.

2) The Agency shall provide the Board with
office facility and technical assistance.

3) Upon deliberation on a complaint submitted
to it, the Board may give one of the following
decisions, which it deems to be appropriate,
with the details to be prescribed in the
directive to be issued by the Minister:
a) that the procurement proceeding in
respect of which a complaint was lodged
be rectified or terminated;
b) to dismiss the case where in its judgment
the complaint is unfounded.

4) The members of the Board shall discharge
their duty in a perfectly ethical manner. They
have the obligation to report any potential or
actual conflict of interest they may come
across in the exercise of their functions and
to exclude themselves from any proceeding
involving such conflict.
CHAPTER FOURTEEN
COMPLAINTS THAT MAY BE LODGED
WITH REGARD TO PROCEEDINGS OF
PUBLIC PROCUREMENT AND PROPERTY
DISPOSAL
73. General

1) Without prejudice to the provisions of this Chapter,
a candidate shall be entitled to submit a complaint
to the head of the public body or to the Board
against an act or omission of the public body in
regard to a public procurement or property
disposal proceeding where he believes that such
an act or omission violates this Proclamation or
the directives.

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2) No complaint may be lodged in accordance
with sub- article (1) of this Article in respect
of the following matters:
a) the selection of procurement method
pursuant to this Proclamation;

b) the rejection of bids, proposals or
quotations pursuant to Article 30 of this
Proclamation;

c) the selection of method of property
disposal;

d) the handling and usage of public
property.

3) Complaints against an act or omission of a
public body pertaining to a proceeding
leading to an award may not be brought
before the head of that public body or the
Board after the contract has been signed with
the successful bidder.

4) The provision of sub- article (3) of this Article
shall apply where the following conditions
are satisfied:

a) where the contract has been signed
without a complaint being filed with the
public body within the time limit
prescribed in the directive;

b) where the public body responds to the
complaint lodged and a contract is
signed because of the expiration of the
time limit for the signing of contract
after the award without the candidate
pursuing its complaint further.

5) The procedure to be followed in resolving
complaints brought in regard to public
procurement and property disposal shall be
determined in accordance with the directive
to be issued by the Minister.

74. Review of Complaints by the Head of the Public
Body

1) A complaint against an act or omission by
the public body shall in the first instance,
be submitted to the head of the public
body.

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2) A candidate shall have to submit the
complaint within five working days
from the date he knew or should have
known the circumstances giving rise to the
complaint.

3) Unless the complaint is resolved by mutual
agreement, the head of the public body shall
suspend the procurement or property disposal
proceedings and shall, within 10 days after
submission of the complaint, issue a written
decision, stating the reasons, and, if the
complaint is upheld, indicating the corrective
measures to be taken.

4) If the head of the public body does not
issue a decision within the time stated in
sub-article (3) of this Article, or if the
candidate is not satisfied with the decision
of the head of the public body the
candidate is entitled to submit a complaint
to the Board within five working days from
the date on which the decision has been or
should have been communicated to the
candidate by the public body.
75. Reviews by the Board

1) Upon receipt of a complaint, the Board shall
promptly give notice of the complaint to the
public body concerned. Such action
automatically suspends further action by the
public body until the Board has settled the
matter.

2) The Board, unless it dismisses the complaint,
may:

a) prohibit the public body from acting or
deciding unlawfully;

b) order the public body to proceed in a
manner conforming to this Proclamation
other than a decision to award or
conclude a contract;

c) annul in whole or in part, an unlawful act
or decision by the public body.

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3) The Board shall, before taking any decision
regarding a complaint, notify relevant bodies
of the complaint and shall take into account
information and arguments received from
such bodies and from the public body.

4) The Board shall issue its decision within 15
working days of receiving the complaint,
stating the reasons for its decision and
remedies granted, if any.

76. Review by the Agency

1) Where a public body believes that an
unlawful act or an act prejudicial to its
legitimate interest has been committed by
candidates, suppliers or by buyers of
disposed property, it shall without prejudice
to the measures it is entitled to take against
such persons in accordance with the bidding
document or the contract, notify the matter in
writing to the Agency.

2) Upon receipt of the complaint the Agency
shall send a written notice of the complaint
and the content of such complaint to the
candidate, the supplier or the buyer of
disposed property against whom the
complaint has been lodged.

3) Where the Agency finds it appropriate to the
resolution of the complaint it may require
persons concerned with the matter to appear
in person and give evidence or seek
professional assistance from any appropriate
body.

4) The Agency shall review and give decision
on the complaint within 15 working days of
receipt of such complaint.

5) The decision to be rendered by the Agency in
accordance with sub-article (4) of this Article
may be one of the following:

a) suspend for a definite or indefinite
period the candidate, supplier or buyer of
disposed property which it finds to be at
fault from participation in any public
procurement or property disposal;

b) give a written warning;

c) dismiss the complaint.
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6) The Minister shall establish by a directive the
procedure the Agency follows in reviewing
and deciding complaints submitted to it in
accordance with this Article.

CHAPTER FIFTEEN
MISCELLANEOUS PROVISIONS

77. Offences and Punishment

1) Every person appointed to or employed by a
public body in carrying out the provisions of
this Proclamation who:

a) receives any payment for the
performance of his official duty, except
as provided by law;

b) who defrauds a public body, conspires or
colludes with any person to defraud the
public body or provides an opportunity for
any person to defraud the public body in
regard to a public procurement or property
disposal proceeding;

c) contravenes or intentionally permits any
contravention of this Proclamation;

d) willfully makes or signs any false entry
in any document or willfully makes or
signs false certificates;
is liable on conviction to a fine not less than
Birr 25,000 and not more than 35,000 and to
a rigorous imprisonment for a term of not
less than 10 years and not more than 15
years.

2) A procurement and property administration
officer employed in carrying out the
provisions of this Proclamation, except such
information required by this Proclamation to
be official, who:

a) discloses to any person or that persons
representative, any matter in respect of
another person, that, may, in the exercise of
the procurement officers powers or the
performance of the procurement officers
duties come to the procurement officers
knowledge;

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b) permits any other person to have access
to records in the possession or custody of
the public body, except in the exercise of
the procurement officers powers or the
performance of the procurement officers
duties under this Proclamation or by
order of a court or any competent body;
commits an offence and is liable on
conviction to a fine of not less than Birr
10,000 and to imprisonment for a term of not
less than 2 years and not more than 5 years.

3) Every person appointed to or employed by a
public body in carrying out the provisions of
this Proclamation who:

a) directly or indirectly asks for or receives
in connection with any of his duties, a
payment or gift, whether pecuniary or
otherwise, or promise or security for that
payment or reward; or

b) enters into or acquiesces in an agreement
to do or to abstain from doing, permit,
conceal, or connive at any act or thing
whereby the procurement or property
disposal is or may be defrauded or which
is contrary to the provisions of this
Proclamation or to the proper execution
of the procurement officers duty;
commits an offence and is liable on
conviction to a fine of not less than 50,000
Birr and to imprisonment for a term of not
less than ten (10) years and not more than
twenty(20) years.

4). Every person who, promises, offers or gives
any bribe to any person appointed to or
employed in any public procurement and
property administration with intent:

a) to influence the decision or action of that
person on any question or matter that is
pending, or may be brought before him
in his official capacity; or

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b) to influence that person to commit, or
aid or abet in committing any fraud on
the procurement, and property
administration or to connive at, collide in
or allow or permit any opportunity for
the commission of any such fraud;

is guilty of an offence and liable on
conviction to a fine of not less than
Birr50,000 and to rigorous imprisonment
for a term of not less than ten(10) years
and not more than twenty (20) years,

5) Any candidate who, with the intention of deriving
unlawful advantage, presents falsified
documentary evidence or conceals any evidence
which he should have disclosed or connives at an
act of fake competition shall upon conviction be
punishable with fine not less than 20,000 Birr and
with rigorous imprisonment of not less than 5
years and not more than 10 years.

78. Power to issue Regulation and Directives

1) The Council of Ministers may, where
necessary, issue regulation for the
implementation of this Proclamation

2) The Minister may issue directives enabling
the realization of the objectives and
implementing the provisions of this
Proclamation.

3) The Agency shall issue procurement and
property administration manuals, standard
bid documents, and forms that are necessary
for the implementation of public procurement
and property administration.

79. Repealed and Non-Applicable Laws

1) Determining the Procedures of Public
Procurement and Establishing the Supervisory
Agency Proclamation No 430/2005 is hereby
repealed and replaced by this Proclamation.

2) No law, regulation, directive or practices
inconsistent with this Proclamation shall have
effect with respect to matters provided for in this
Proclamation;

49)9

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pBlK PzNT pBlK PzNT pBlK PzNT pBlK PzNT

80. Effective Date

This Proclamation shall enter into force up on the
date of publication in the Federal Negarit Gazeta.

Done at Addis Ababa, this 9
th

t
day of September, 2009

GIRMA WOLDEGIORGIS

PRESIDENT OF THE FEDERAL
DEMOCRATIC REPUBLIC OF ETHIOPIA

49)0

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