Proclamation 649.ae PDF

yxTe E KsE pBlK
L nUT Uz
FEDERAL NEGARIT GAZETA
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
bxTe E KsE pBlK 15th Year No. 60

q_R ^
yZB twC MKR bT qEnT yw ADDIS ABABA 9th September, 2009
4 qN 21 .
W CONTENTS
xJ q_R 6)#9/21 .M Proclamation No. 649/2009
= ^ SY w[ The Ethiopian Federal Government Procurement and

e}` . 48)$8 Property Administration Proclamation Page 4858
6)#9/21
xJ q_R 6)#9 PROCLAMATION NO. 649/2009.
23123
=}
=} ^L SY THE ETHIOPIAN FEDERAL GOVERNMENT
w[ e}` PROCUREMENT AND PROPERTY
ADMINISTRATION PROCLAMATION
= ^ SY SY WHEREAS, to achieve better transparency, efficiency,

Y` KSc }q] ?c=< fairness and impartiality in public procurement and to enable
KTssU < Y^ L uKv< the utilization of the large sum of public money spent on
S uU S< a uTe procurement in a manner that ensures greater economy and
efficiency by addressing problems encountered in the course
SY Y` uM M' kM-
of implementation of the proclamation determining the
' M K?Ku =G<K< } SY w Governmemt and establishing the Supervisory Agency during
u}hK "D%E lv <?T T[- the years in which it was enforce;
uT>eM Y` pU L =<M
T[ eL> J uS~
WHEREAS, it is necessary to ensure that an
organization enabling the realization of the economic
pM T>< =T> k
benefit and efficiency flowing from bulk purchase is in
T@ kM W^` T[ T>eM
place;
[ =` T[ eL> uSJ<
} Gw T>eu SY w WHEREAS, to ensure that public property in which a

[ KSY }hK pU uT>e "D%E significant amount of public money is invested, is utilized in
pU L =<M e}\U S such a manner as to enable the government device maximum
benefit therefrom and modernize the administration thereof, it
=J KT[ T>eM }k Y`
is necessary to introduce an integrated public property
K=[ T>v Su J administration;
NOW, THEREFORE, in accordance with Article

u= ^L =V^c= ]w
55(1) of the Constitution of the Federal Democratic
K= Q-SY k () SW[
Republic of Ethiopia, it is hereby proclaimed as
T>}K< <;M::
follows:
N U nUT Uz ..q. *1
Unit Price Negarit G. P.O.Box 80001
gA 48)$9 L UT Uz q_R % 4 q
q N 21 .M Federal Negarit Gazeta No. 60 9st September, 2009 . page 4859
CHAPTER ONE
GENERAL
p L L
1. Short Title
1/ ` è
This Proclamation may be cited as The Ethiopian
I #= ^ SY Federal Government Procurement and Property
w[ e}` l` Administration Proclamation No.649/2009.
6)#9/21$ }wKA K=ke LM::
2. Definitions
2/ ` T@
In this Proclamation unless the context requires
# % otherwise:
1 u=I <e:-
1/ Goods mean raw material, products and
1/ #n
n$
n TK u`' uXi U equipment and commodities in solid, liquid
u SM T> _ n' U`' or gaseous form, marketable software and
SX]' gk '
live animals as well as installation, trans-
' E c=J' T>< n ` port, maintenance or similar obligations
< K< n related to the supply of the goods if their
MuK K< }L' ê- value does not exceed that of the goods
` K?L }Sdd M- themselves;
KA U^M
2/ Services mean any object of procurement
2/ #MKA$
#MKA TK n' v other than works, goods and consultancy
` Y^ U` MKA services: such as maintenance, security,
< K c=J' ' ' - janitorial, electricity, telecomm- unication
A !"' #$%&% '( ' and water supply services;
)$*+,-. E /H A01
23K< U^M
3/ Works mean all work associated with the
3/ #v
v
v ` Y^$
Y^ TK Q' S- construction, reconstruction, up grading,
U SW[}-MT Y^ ` demolition, repair or renovation of a building
u} T> =e v' SMf road, or structure, as well as services
v'456 74!' T[e' ' incidental to works, if the value of those
Te Y^ =G<U } J -
< Y^ MuK K< MKA services does not exceed that of the works
c=J' Sv' uvKu? S' themselves and includes build-own-operate,
Y^< Tkdke' Te}LK' U build- own-operate-transfer and build-
Sv' Tkdke' Te}LK operate-transfer contracts;
U Sv' uvKu? S
Tkdke <KA U^M
4/ Consultancy Service mean a service of an
4/ #U`
U` MKA$
MKA TK T"]
L< S< IKA uSkU T> intellectual and advisory nature provided by
c< ' = E 8' consultants using their professional skills to
}K
a T^' Ku study, design and organize specific projects,
U` Se' YM Se advice clients, conduct training and transfer
<k Te}LK T"] vI] knowledge;
K< Ua MKA <
5/ Procurement mean obtaining goods, works,
5/ #
$
TK n9' v ` consultancy or other services through
Y^9 MKA u' purchasing, hiring or obtaining by any other
u=^ U uT<U K?L }Sd- contractual means;
d <M T <
gA 48)% L UT Uz q_R % 4 q
6/ #SY SY] u?$ TK S<K< 6/ Public Body mean any public body, which is
uS<K}` SY S
and public institutions of like nature;
u?' } UI` }sU # }Sd-
d sU K< "M
7/ Public Fund mean any monetary resource
7/ #SY w$ TK ^M S- appropriated to a public body from the Federal
Y U u? U ^M S- Government treasury or aid grants and credits put
Y "< < ` w` KS- at the disposal of the public bodies by foreign
Y SY] u? }Su w U donors through the Federal Government or
m b@~ <e u= < internal revenue of the public body;
8/ #SY $ TK uSY SY] 8/ Public Procurement mean procurement by a

u? uSY w T> < public body using public fund;
9/ #pû=
pû=$
pû= TK KSY SY] u? n 9/ Supplier mean a natural or juridical person
U MKA KTp[w U v
` Y^ KT <M v c< U under contract with a public body to supply
` goods, works or services;
0/ #
}]$
}] TK uSY 10/ Candidate mean a natural or juridical
=d} }u U KS"- person invited to take part in public
M SK} c< U ` procurement or seeking to be so invited;
<
11/ Bidder mean a natural or juridical person
01/ #}^
}^$
}^ TK S[ Gdw submitting a bid;
k[u c< <
12/ Bidding Documents mean a document
02/ #[
[ c TK E; <&-
[ c$ prepared by the public body as a basis for
9= 2>5? 3@ KT #-= preparation of bids; which contains a
K< uSY SY] u? T> specification of the desired object of
AA !B CD E c procurement;
<
13/ Bid Proposal mean a document submitted
03/ #S[ c$ TK 2!F by bidders to participate in a bid on the basis
2 GH !B/ I / J- of the bid document prepared by a public
5K 3@ 2L }^ !B/ body in respect of that procurement;
2 E
M / c <
04/ #
SS]
SS]$ TK u=I 14/ Procurement Directive mean the directive
SW[ uw =T> MT T>>e\ to be issued by the Minister of Finance and
T> SS] < Economic Development in accordance with
this Proclamation;
05/ #T>
T>>e` # T
T>>>e`
`$ TK #pU 15/ Minister or Ministry mean the Minister or
}}K< w =T> MT T>>e` the Ministry of Finance and Economic
# T>>e` < Development respectively;
06/ #c
c<$
c TK }a c>e\ of sizable volume carried out in bulk by a
<X@ up T>S< } decision of the Minister on account of the
U SY SY] national significance of that procurement or
u? L< }Sdd L to fulfill similar requirements of various
A =G? <e u} body within a given period of time;
T> T>[< LA
KTTEL T>U <
08/ #Tk eUU

eUU$
TK 18/ Framework Contract mean a general agreement
of procurement establishing unit price and other
uT>U `` <M KEN< A0
terms and conditions of contract which serves as a
1 SW[ uSJ T>KM' uOC
basis for supplies to be delivered under future
uK?KA <M G<@ L
specific contract;
uSSe[ }S nL J
eUU <
09/ #Tk eUU pû=$

pû TK 19/ Framework Contract Supplier mean a
uTk eUU n U K?KA supplier who has entered in to a contractual
MKA KTp[w <M v obligation to supply goods or services under
pû= < a framework contract;
!/ #x`
x`$
x` TK u^M Se 20/ Board mean an entity established under
U w[ this Proclamation to review and decide on
H> L u }] T>k- complaints from candidates in regard to the
`w u?~ SÙa <d@ =c conduct of procurements and disposal of
u=I }ssS< "M < property of the Federal Government;
!1/ #Se w[$

w[ TK Se 21/ Public Property mean any property of the
w S_ ue}k` ^M Federal Government other than public fund
Se Nw J T<U and land;
w[ <
!2/ #un L$
L TK uSY 22/ Custodial Responsibility mean the
SY] b@T ybY ` wYM `W
responsibility conferred on a civil servant by
bwklW y| m ymNG|T NBrT
XSkwgD wYM kmZgB XSk\rZ the head of a public body or by a person
wYM bl@ \t wYM m b@T delegated by him to protect and maintain
_b |R XN!WL XSktlF DrS public property until it is disposed or written
ymNG|T NBrT lmZ lm-bQ off, or transferred to the custody of another
KmNG|T \t ys_ ` nW civil servant or public body;
!3/ #sT>
sT> w[$
w[ TK Gz#E hLT
23/ Fixed Asset mean tangible asset the value
lW yt-L UW n!ST b
wW mm ywsN kxND mT of which is determined by a directive to be
bY ln g!z@ -q c? yrW issued by the Minister, that is in operational
X xgLGlT bmS-T Y yg" use and that has a useful economic life of
NBrT s!N XNd yb! : M more than one year, such as furniture,
pEWtR kD m t>kR computers, heavy equipment, vehicles, ships
mRkB xWPN ?N mNgD and aircraft, buildings, roads, sewers,
yF> mSmR DLDY mS X bridges, irrigation systems, dam and the like;
GDB ymsl#TN Y=ML
gA 48)%2 L UT Uz q_R % 4 q
!4/ #Q S Y`$
Y` TK km 24/ Life- Time Approach mean a system of
NG|T NBrT UR ytz# tGC X effective management and control of public
wCN yqD ymZ ymrkB property which takes in to account all
ym-qM y_g yF wYM
associated activities and costs, namely,
ySwgD wYM kmZgB ym\rZ
}GT kGMT WS_ bSgT S planning, acquisition, receipt, use,
Y w[ e}` l` maintenance, consumption or disposal or
wn vK< S =S^ KT[ deletion of public property;
T>eM Y` <
25/ Supplies means all public property other
!5/ n TK k : W yn
#Lm n$ than fixed assets, which can be consumed
cWM ymNG|T NBrT s!N within one year of use and the value of which
0P C( 2Q N25 RS AT is determined by a directive to be issued by
e xND mT A !" U3 E the Minister;
= X UW n!ST bwW
mm ywsN NBrT /
26/ Disposal mean the transfer of public
!6/ #Te
Te$
Te TK SY w[ property to another person by sale or other
ui U u` KK?L means or the act of getting rid of public
Te}LK U Spu` U property by burning or burying;
TnM <
27/ Public Private Partnership mean investment
!7/. #SY M i`$ TK through private sector participation by a
uSY SY] u? uM contractual arrangement between a public body
vKGw S"M uT>[ <M uK< and a private sector enterprise, as the
vKGw }d T>[ =e concessionnaire, in which the concessionnaire:
S c=J c?i` }wKA T>
k< M vKGw-
9/ v a U M a) undertakes to perform or undertake any

KA U uc?i =^ construction project or service or lease
T>c< Y^ KT concession;
T>vu'
/ SY }v` J< Y^ b) assumes substantial financial, technical and

T U SY w[ operational risks in connection with the
Y^ L TM ` u} performance of a public function or use of
ue' u> uY^ government property; and
penc? [ T>\ L
uS< T>eu'
c) receives consideration for performing a public
/ SY }v` J< Y^
uT U SY w[ function or utilizing government property, by
Y^ L uTM KT>c< M- way of fees from any public funds, user
KA SY T>u levies collected by the concessionnaire from
U u}nT> L T>M users or customers for a service provided by
u= T>cuewu U uG<K it, or a combination of such consideration.
~U S KMKA~ T>
u' <M <::
28/ Concessionaire mean a person who enters
!8/ #c?i`$ TK SY into a contract with a public body under a
SY] u? ` SY M public private partnership;
i` <M T>v c< <
29/ "Regional States" mean member states of the
!9/ yMM SY lT <
yMM SY
% Q-
Federal Democratic Republic of Ethiopia
SY k #7 }[\ listed under Article 47 of the Constitution of
= ^L =V^c= the Federal Democratic Republic of Ethiopia
]wK= L c=J<' K=I and for the purpose of this Proclamation
U _ =e uv }T include the Addis Ababa and Dire Dawa City
e}a U^M:: administrations.
gA 48)%3 L UT Uz q_R % 4 q
3. }T> c 3. Scope of Application
1/ I uT JM:: administration.
2/ u=I k <e k // }< 2/ Notwithstanding the provisions of sub-article
u=Ù- (1) of this Article:
a) the Minister in consultation with the
G/ T>>e\ vw "L< SY
heads of the relevant public bodies may
S uL L `
uSS"` uwN?^ I in the interest of national security or
u` SL U national defense decide to use a different
w[ e}` u}K =- procedure of procurement and property
U <X@ K=c LM:: I uT>- administration in which case the
Ju >? T>>e\ G %- Minister shall define by a directive the
ulv <?T method of procurement and property
uJ S = <KT[ administration to be followed in order to
T>eM }K G % serve the interest of economy and
uY^ L KTM efficiency;
T>eM SS] M=
K/ SY SY] u? :-
b) this Proclamation does not apply to
CN yGN zRF |CN
contracts a public body enters into with
yMKR l@lC xgLGlCN
w uSg K?KA SY another public body for the provision of
goods, works, consultancy or other
SY] u? KGT ud
services at cost.
Rg#T WL C( I VWE
A(XPYY
4.
LK 4. Gender Reference
bz!H xJ WS_ u }< Provisions of this Proclamation set out in
c?U "M'
masculine gender shall also apply to the feminine
gender.
5. SY E Z5 A4 S`
J
5. Principles of Public Procurement and
Property Administration
S U G %
} T>}K< S`J SW[ Public procurement and property administration
T[ ùM:-
shall have to comply with the following
principles:
1/ u U [ SY
w K=e T>K< pU
1/ ensure value for money in the use of public
Te~
fund for procurement;
2/ u=I u}k< M e}
"MJ ue}k` u? U S 2/ non discrimination among candidates on
] Se` ` vM}< grounds of nationality or any other criteria
K?KA U u }] not having to do with their qualification,
S"M M KS[< except in cases of preference specifically
provided for in this Proclamation;
3/ Tcu
Se` u L 3/ transparency and fairness of the criteria on the
T>c< <X@ < KT>SK basis of which decisions are given in public
< G<K< M E [\ procurement as well as of decisions in each
2X] procurement;
gA 48)%4 L UT Uz q_R % 4 q
4/ accountability for decisions made and

4// <X@ # }c #Ù measures taken with regard to public
}
m T>eK< SJ< procurement and property administration;
5/ 2! Z5 ^ 2

A 5/ careful handling and proper use of public
K2 AC7 2Q_ property.
6. KU k
6. International Obligations
1/ I ^M SY 1/ To the extent that this Proclamation conflicts

U uL J< SY with an obligation of the Federal Government
U KU k ` ` under or arising out of an agreement with one
v[`< eUU or more other states or with an international
U eUU~ S ` organization, the provisions of that
TU J ueUU~ agreement shall prevail.
}SK}< M::
2/ Where an agreement referred to in sub-article
2/ u=I k <e k // }SK (1) of this Article contains a preference or
}< eUU K= U u= preferences in favour of national and resident
] KJ< }^ M bidders, the public body shall ensure that the
e} T>p uT>Ju >? applicable preference or preferences are
SY SY] u?~ }T> T>
J< M e} u[ c clearly stated in the bidding documents.
<e uM TSM Ku::
7. c Qu< => This Proclamation and the procurement and

\ T>< w[ SS]- property directives to be issued by the Minister as
K?KA w[ e}` well as other documents pertaining to public
c Qw =<n< S[ procurement and property administration shall be
KnkU S uJ S S promptly made accessible to the public and
Kv<:: systematically maintained.
8. SY SY] u? uL L L 8. Responsibilities of Heads of Public Bodies

Public bodies shall have overall responsibility for
SY SY] u? eKT><<
procurements they carry out and the property they
# e}\ w[ pLL
administer. In particular, the head of a public
L Kv< c=J' u}KU S-
Y SY] u? uL L T>>e\ body shall apart from those specified in the
uT>< SS] L T>K< directives to be issued by the Minister, have the
`` L u}T] T>}K< following responsibilities:
nL L \M-
G/ u}u=< c< M } a) cause to be established an adequately staffed

w[ e}` Y^ unit for procurement and property
T>< Y^ M
4`6 administration;
/ } w S L<
SÙa T>p T> b) setup a procurement endorsing committee
slTM' <ewew KJ< which approves procurements of higher
>? UT> T> K=slU value; it may also setup ad hoc evaluation
LM committee for complex procurement;
gA 48)%5 L UT Uz q_R % 4 q
N/ u G uw[ e}` Y^ L
c) ensure that staff and officials assigned in the
T>S U }Su< c^}
=G vL procurement and property administration and
those assigned as members of the
I U SS]<
procurement endorsing committee receive
Z T<M Su [ c
training to enable them acquire knowledge of
K?KA }u= p
the content and application of this
nkU =<l T[ T>-
eM eM T< S- Proclamation, the directives to be issued in
accordance with this Proclamation, the
e Z G %
procurement and property administration
KSU um IKA L< SJ<
manuals, the standard bidding documents and
[M
other relevant forms;
S/ Se up L }S
c[} u=I }SK~ d) ensure that the procurement of the public
S`J uk SJ< body is preplanned and complies with
[M procurement principles enshrined in this
Proclamation;
W/ e^ M m
T> K?KA SU e) ensure that the procurement department, the
L }c< L }v^ procurement endorsing committee and other
< u}u=< ST S sections of the public body involved in
< [M procurement discharge their duties properly;
[/ eL>~ e` T> f) where necessary, enter into a contract with third

eS< Ze} k^M parties which support the public body in the
process of procurement;
c/ Se w[ =T>
<?T uJ S MKA L g) ensure that property at the disposal of the
SK< [M public body is used in such a manner as to
achieve economy and efficiency;
g/ uS u?~ Y` T><
SY w[ uT>v }Su h) ensure that property at the disposal of the
M Y` }[K' public body is duly registered and traceable,
}u=< un w"u? }[ properly handled and looked after and
K' MKA Tc J c= disposed off when it is no longer useful.
up~ = S[<
[M::
9. Y^ M }v` L 9. Duties and Responsibilities of Procurement

and Property Administration Unit
uSY SY] u? <e T> The procurement department in a public body
S< Y^ M u SS] shall, apart from the responsibilities assigned to it
uSY] u?~ uT>< Y^ `` by the procurement directives and the job
T>c< }v^ u}T] T>}K<
description prepared by the public body have the
nL }v^ \M-
following duties and responsibilities:
G/ Se u}TEL S<
a) execute public procurement in a perfectly
eUv` IKA TM
ethical and skillful manner;
K/ I U SS]- b) carry out public procurement in accordance
< T<M Su with this Proclamation, the procurement
[ c U p directives, the procurement manual , the
<K< SW[ uT[ standard bid documents, the forms and the
SY TM& procurement contract;
N/ u=I k !3 u}< c) maintain complete record for each

Sc[ K< }TEL S[ procurement in accordance with Article 23 of
M& u}k >?U k`vM this Proclamation.
gA 48)%6 L UT Uz q_R % 4 q
10. Duties and Responsibilities of Procurement

0. T> }v` L
Endorsing Committee
The procurement endorsing committee shall have
Z the following responsibilities:
-
/ u SS]< L }kS< a) ensure that public procurement is executed in

w }uk J SY compliance with this Proclamation, the
I U SS]< procurement directives, the procurement
T<M Su [ c manual, the standard bid document and the
K?KA p SW[ uT[ forms;
}S SJ< [M
/ u SS]< L }kS< b) review and endorse procurements within the

w }uk J [ U financial limits set by the directive;
UT ]` SÙa
nM&
/ SY <?T
KT[ uT>eK< L c) advise the head of the public office on
SY SY] u?~ uL methods of achieving effective procurement.
GL T^M
01. }m 11. Accountability

Procurement and property administration staff or
uSY SY] u? K
w[ e}` Y^ }Su< W^} heads of procurement and property
U SY w[ KT administration units and members of the
e}` }jS< L procurement endorsing committee in public
u=I T>e\ bodies shall be accountable for their actions in
accordance with this Proclamation and the
uT>< SS] SW[ eKT>
eD< Ù }m JK<:: directives to be issued by the Minister.
CHAPTER TWO
U^ G<K THE PUBLIC PROCUREMENT AND PROPERTY
SY w[ e}` ?c
?c==
ADMINISTRATION AGENCY
02. ?c=< SssU

12. Establishment
1/ SY w[ e}` 1/ It is hereby reestablished the Public Procurement

?c= /=I u%EL #?c=$ }vK and Property Administration Agency (hereinafter
T>^/ ^c< K Q c< referred to as the "Agency") as an autonomous
K< ^M SY SY] Federal Government organ having its own
u? J u=I juridical personality.
}slTEM::
2/ ?c=< }]~ KT>>e\ JM:: 2/ The Agency shall be accountable to the

Minister.
03. SY] u?
13. Head Office
?c=< SY] u? =e uv
J eL>~ uT<U Y^ The head office of the Agency shall be in Addis
p` SY] u? K=\ LM:: Ababa and may have branch offices else where as
may be necessary.
gA 48)%7 L UT Uz q_R % 4 q
04. ?c=< LT 14. Objectives of the Agency
?c=< LT T>}K< <:- The objectives of the Agency are:
1/ ' u<` L }SW[}' 1/ ensure the application of fair, competitive,

M' M K?Ku' KSY transparent, non-discriminatory and value for
w }S< Te T> money procurement and modern public
eM U zmE ymNGST property administration;
NBrT xStdR S\ T[
2/ follow up compliance of public bodies with the
2/ SY SY] u? u=I provisions of this Proclamation in conducting
}[\ wk< SY^< procurement and administrator property at their
S}M disposal;
3/ u^M SY <e K< 3/ build the capacity of procurement and property

U w[ e}` administration with in the Federal
pU Td Government;
4/ G AM 456 bb2 2! 4/ work for the prevalence of uniform and consistent
!B Z5 A4 Ec system of public procurement and property
d [ T[ administration at national level;
5/ 2! !B Z5 A4 5/ endeavor to harmonize the system of public
MI( eCf/ AP AM AT= procurement and property administration with the
bb2 EcX [ T[ internationally recognized standards.
0 5. ?c=< }va 15. Functions of the Agency
?c=< =I u }[\ }va The Functions of the Agency are to:

<M:-
1) advise the Federal Government on all public
1/ uSY w[ e}`
procurement and property administration
K=c=' S`J V L
^M SY TT`' policies, principles and implementation and
provide technical assistance to the regional
KMKA G
> Se governments and city administrations;
2/ u^M SY <e K< 2) monitor and report to the Minister the

performance of the public procurement and
SY U w[
property administration systems in the Federal
e}` Y` }v^ S
Government, initiate amendments on laws and
}M' KT>>e\ ]` T[
implementation system improvements;
uQ uU Y`~ L Thh
GXx Tp[w
3/ vw "L< "L ` uS}vu` 3/ in collaboration with competent authorities

w[ e}` YM ensure the setting of training standards,
=GeM< KA' and professional development paths of public
uS<< KSWT^ }L> J< procurement and property administration;
Te[ S<< K=}M
T>v< H> Sc< T[
4/ prepare, update and issue authorized versions
4/ Su c' W^\ T> of the standard bidding documents,
S\ p K?KA K w[ procedural forms and any other attendant
e}` vw L< c documents pertaining to procurement and
T' Y^ L =<K< property administration;
p =J< T[
gA 48)%8 L UT Uz q_R % 4 q
5/ }k Su ' 5/ consider and decide on request from public

c' W^\ T>S\ p offices to deviate from the prescribed methods of
K?KA K U vw procurement, the standard bidding documents,
"L< c < KSU procedural forms and any other attendant
U }k w[ documents in effecting procurement or use other
Y` eM < w[ systems or methods of disposing of public
KTe uSY SY] u? property than those authorized by law;
o c=k`wK o< SÙa
<X@ Se
6/ uSY KSd} LA L 6/ introduce an efficient system of listing under

< pû= T>Sukù< registered; receives, reviews and records
TSM SkuM' SS`S` applications by candidates for registered
SSw' Uv< supplier status and distribute the suppliers
`` TW^ list;
7/ u }] upû= L 7/ review and decide on complaints submitted
SY S u? T>k` by public bodies on the conduct of bidders or
vD< u?~ SÙa <X@ suppliers, and send copies of such decision to
Se' <X@< p= KT>SK the concerned organs;
< TW^
8/ maintains and distributes a list of suppliers
8/ SY S u? ` v[ who by reason of having seriously neglected
< <M SW[ < their obligations under a public procurement
vKS<' eKwn< Gc}
contract, or having provided false
S[ uTp[v< uST< U ? having committed the act of the kind referred
c=< uSY U to in Article 16(3) and 32(2) of this
d} < pû= `` Proclamation have been debarred from
S TW^ participating in public procurement by the
Agency;
9/ U w[ e}`
tGT I K?KA 9/ conduct audit to ensure that procurement and
Se w[ e}` property administration activities of public
ymcWN c wk< bodies are in accordance with this
}< SJ< KT[ Proclamation and other documents governing
*= T[ public procurement and property
administration;
0/ K xf[M w[ e}`
T>KM S[ Tc^ 10/ set up, develop, maintain and update a data
U TssU' TAMu' Sup base that covers the entire spectrum of public
p~ }uk =J procurement and property administration;
T[
11/ develop policies and maintain an operational
01/ }sU c< M pU plan on capacity building both for
KTAMu T>eM pU v institutional and human resource
K=c= p =` T[ development;
12/ establish and maintain institutional linkages

02/ S< S< ` u}< vw with entities working for the development of
vL< < L }WT\ J<
a profession and related matters who have an
uSY w[ e}`
KSd} LA "L< "L ` interest to participate in public procurement
}sT < S` Tu` and property administration;
gA 48)%9 L UT Uz q_R % 4 q
03/ eKSY U w[ 13/ undertake public procurement execution and

e}` T"N?' yxQM property administration research and surveys,
GN TBBR XN!R DrG and establish cooperation in the area of
capacity building;
04/ I u SW[ T>< 14/ administer and enforce compliance with all the
x SS] =G>e provisions of this Proclamation, regulations and
\ }c< K? }va uM directives to be issued in accordance with this
Y^ L SL< T[ Proclamation and other functions given to it by the
Minister;
05/ SY SY] u? T>k`w
K S[ SW[ uT[ 15/ submit quarterly and annually report to the
SY w[ e}` Minister regarding the overall functioning of
Y` uT>v T>W^ eKSJ< the public procurement and property
KT>>e\ % G S ] administration system based on information
` Tp[w' T>>e\ uT>k< provided to it by public bodies and provide
`` SW[ u S such data as the Minister may request
Y SY] u? eK}< regarding the nature and volume of public
S =G<U w[ procurement handled by each entity; as well
e}` < M S[ as on matters of property administration;
Se
06/ G xf[M 16/ provide office facilities and technical support

% for the board established by this
xb@t$ Proclamation to review complaints of
Wn@ s RD candidates in public procurement and
b@T yt&Kn!K DUF xgLGlT disposal of public property and follow up the
mS-T yRN Wn@C tG implementation of the decisions of the board;
EnT mktL
07/ vw vL< B/@E KLE 17/ cause any supplier barred by the decision of
mNGST xT bKLl# ymNGST competent authorities of a regional
G xf[M Y XNYtF ygd government, from participating on
X tw wYM xQb! bL procurements of such region, not to
mNGST m b@C G XNY participate in procurements of federal public
tF DrG bodies;
08/ i xgLG 18/ set a standard for major items of public

lT Y lWl# bodies representing important fixed assets
NBrC dr xf[N and follow-up adherence to such standards.

06. ?c=< YM 16. Powers of the Agency
?c=< Y^< uT>? In the exercise of its functions, the Agency shall
T>}K< YM [M:- have the power to:
1/ T< < 1/ require any information, documents, records
eKSS<' uM eLKT and reports in respect of any aspect of the
<' < W^` uM eLK public procurement process where a breach,
SS< U eKSSd\ qT wrongdoing, mismanagement or collusions
k[u J SK< nL books of accounts, plans, documents and
< uSGL =c< T[' H> examine witnesses and parties concerned on
dw Sw' L' c =k`w oath;
K T[
3/ u ` TU uT>kù< 3/ give warning to or suspend for a definite or

K?KAU =I uT>> indefinite period of time from participating in
e\ T>< SS] @ public procurement candidates, suppliers or
T>n[< }v^ T>S< persons involved in the disposal of public
}]' pû= U uS
property where it proves that they have
Y w[ Te H> }d
offered a price higher than the market or
i 1p1
committed an act contravening the provisions
Tekm Se' K}c U
of this Proclamation and the directives to be
LM}c >? uY U
issued by the Minister;
w[ Te H> d
T
4/ conduct audit on its own program or cause
4/ uSY w[ e}` audit to be conducted where it receives
U L u^c< aÛ U allegations of misconduct warranting such
uT>`c< qT Sh audit on a process of public procurement and
property administration;
5// um U K SJ< c=[ u=I 5/ upon the request of public bodies,

u SS]< }k exceptionally and when justified on sound
Y` < KSU grounds, may permit the use of a procedure
SY SY] u? uT>kù<
which is not consistent with the procedures
o SW[ =U
laid down by this Proclamation or the
Sk
procurement directive.
07/ ?c=< ` 17. Organization of the Agency

` sU
sU
?c=<:- The Agency shall have:
1/ uSY T>jU _- 1/ a Director General and Deputy Director General to

be appointed by the Government; and
}` UM _}`'
2/ the necessary staff.
2/ eL> W^}'
\M::
08. < _}` YM }v` 18. Powers and Duties of the Director General
1/ < _}` ?c=< Y^

eT> J T>>e\ uT>c< 1/ The Director General shall be the chief executive
nL SS] SW[ ?c= officer of the Agency and shall, subject to the
general directives of the Minister, direct and
< Y^ S^M' e}^M::
administer the activities of the Agency.
2/ Without prejudice to the generalities of the

2/ =I u<e k /1/ }k
c< pLL ` }uk J provisions of sub-article (1) of this Article,
< _}` - the Director General shall:
G/ u=I k 05 06 } (a) exercise the powers and functions of the

SK~ ?c=< YM Agency specified under Articles 15 and
}va Y^ L <LM 16 of this Proclamation;
gA 48)&1 L UT Uz q_R % 4 q
K/ u^M c=y=M c`y=e Q SW b) employ, administer and dismiss personnel of

[ ?c=< W^} k the Agency in accordance with the Federal
^M' e}^M cwM Civil Service Proclamation;
N/ ?c=< Y^ aÛ c) prepare the work program and budget of

u k`vM' c=kU the Agency and implement the same
Y^ L <LM upon approval;
S/ ?c=< Y^ < H>- d) prepare and submit to the Minister

dw ]` k`vM operational and financial report on the
activities of the Agency;
W/ Ze} ` uT>[< e) represent the Agency in all its relations

< G<K< ?c=< LM:: with third parties.
3/ The Director General may delegate part of

3/ < _}` K?c=< Y^ his powers and duties to employees of the
pM uT>eM S YM Agency to the extent necessary for the
}v\ uM K?c=< effective management of the functions of
t u<M K=e}LM LM:: Agency.
19. Powers and Duties of the Deputy Director General

09. UM _}` YM }v`
1) Subject to directions given from the Director

1/ UM _}\ < _ General, the Deputy Director General shall assist
}` uT>c< SS] SW[ ? the Director General in planning, organizing,
c=< }v^ uTk' uT^ directing and coordinating the activities of the
' uSU^ uTe}vu` Agency. assist the Director General in planning,
_}\ M:: organizing, directing and coordinating the
activities of the Agency.
2/ _}\ uTù ? K 2) The Deputy Director General shall act on

_}\ }c< }v^ behalf of the Director General in his absence.
G <M::
20. Source of Budget
!. u U
The budget of the Agency shall be allocated by
?c=Sw the Government.
JM::
21. Books of Accounts
!1. H>dw Sw
!1.
1/ The Agency shall keep complete and
accurate books of accounts.
1/ ?c=< }TEL K J<
H>dw Sw M:: 2/ The books of accounts and other financial
documents of the Agency shall be audited
2/ ?c=< H>dw Sw K?KA annually by the Auditor General or by an
w c u< *=}` auditor designated by him.
U u< *=}` uT>cU
*=}` uS~ S[S^K<::
gA 48)&2 L UT Uz q_R % 4 q
CHAPTER THREE
U^ Ze BASIC PUBLIC PROCUREMENT
SW[
SW[ @
@ PROCEDURES
22. Procurement Plan

!2 p
!2.
1) Public bodies shall have to prepare an annual

1/ SY SY] u? uu
S~ T>S< T>d procurement plan showing their procurement
T>>e\ uT>< SS] for the concerned budget year and containing
L T>K `` < }} such details as are stated in the directive to be
S p 7 issued by the Minister.
(dIfQ YY
2) The procurement plan to be prepared by
2/ u=I k <e k /1/ SW[
public bodies in accordance with sub-article
/< p uSY] u?~ (1) of this Article, shall have to be approved
uL L @g E2NKf/ by the head of the public body concerned and
2 GH F` %"= E communicated to the relevant departments of
#h/ uS~ EN NUK? " the public body and the Agency until Hamle
SL ùMYY 30 of the Ethiopian Calendar.
!3. c
!3. 23. Records of Procurement
1/ i 1/ Public bodies shall have to maintain records

Z y G and documents regarding their public
1 Z procurement for such period of time as is
{ determined by the directive to be issued by
the Minister from the date of concluding any
1 procurement proceeding Such informations
- shall include the following:
G/ # a) a brief description of the goods works or

services to be procured;
K/ b) the invitation to bid;
N/ 9% c) the names and addresses of suppliers that

G submitted bids, proposals or quotations,
p S G and the name and address of the winning
G p suppliers;
S/ d) the evaluation criteria stipulated and

G applied and a summary of the evaluation
ST G and comparison of bids, proposals and
G quotations received;
9% G

e) information on the proceeding of any
decision rendered where a complaint
W/ AGHK M1 NX /i A3b against a procurement process is lodged;
j4H E
( 256
f) the grounds for using a procurement

/ Z procedure other than open bidding.

gA 48)&3 L UT Uz q_R % 4 q
2/ g< ` <M }[S U 2/ The record concerning any proceeding shall

uT resulted in a contract or have otherwise been
d< S[ u[< }d terminated, be made available to candidates
J< }] c=l = who participated in the proceedings.
S[ Ku:: S However, except when ordered to do so by a
competent court or other body authorized by
u? "M ue}k` SY law and subject to the conditions of such an
SY] u?~ T>}K< S[ order, the pblic body shall not disclose:
Se KuU-
G/ a) information if its disclosure would be

G contrary to law, would impede law
% # enforcement, would not be in the public
interest, would prejudice legitimate
S G commercial interest of the parties or
1 would inhibit fair competition;
K/ u=I k u<e k (1) (S) b) information relating to the examination

u}SK}< SW[ uTd` } and evaluation of bids, proposals or
< c "MJ ue }k` }^ quotations and the actual content of bids,
k[u< S] Gdw S
S`S` SUU }v` ` proposals or quotations, other than in the
}< S[' }^ summary record form referred to in sub-
k[u<< S] Gdx article (1)(d) of this Article.
[ c T>M< S[

!4. M
!4. M KT[
24. Non-discrimination
u=I k !5 }<
}uk J u?' u` U Without prejudice to the provisions of Article 25
S] Se` ` vM}< of this Proclamation, candidates shall not be
K?KA U uSY discriminated against in the proceeding of public
procurement on the basis of nationality, race or
K=[ MU:: any other criterion not having to do with their
qualifications.
!5. M e}
!5.
25. Preference
1/ uT>>e\ uT>< SS] uT>
c< SW[ u[ UT p 1/ A preference margin which shall be
u= K}S[~ n' u= determined by a directive to be issued by the
<v KT>< v Minister for goods produced in Ethiopia, for
` Y^ Ilm
nI
works carried out by Ethiopian nationals and
9= KEN<] P% A !" for consultancy services rendered by
F`9= M e} [LM Ethiopian nationals be granted in the
evaluation process.
2/ ue} np }sT 2/ In addition to the preference provided for in

SW[ }ssS< e} }sT sub-article (1) of this Article, further
u=I k <e k /1/ } preference of such margin as to be
determined by the directive to be issued by
kc< }uk J n!ST b
the Minister may be allowed for small and
wW mm m\rT }T]
micro-enterprises established in accordance
L xStyT K=[L< LM::
with Small and Micro-Enterprises
Proclamation.
gA 48)&4 L UT Uz q_R % 4 q
3/ y:C xgLGlC wYM yGN 3/ Where in the evaluation of bids for

|C _T U tmY procurement of goods, services or works
tC bGMg Xk#L n_B s! equal percentage points are resulted for
g# lxgR WS_ MRCxgLGlC bidders offering similar price and quality,
wYM k#NC QD Y\L preference shall be given to local goods,
services or companies.
4/ K=I k <e k /1/ U
T<U n < "5 S 4/ For the purpose of sub-article (1) of this
uL u= <e K J Article any good to which more than 35% of
u= <e }S[} q the value added occurs in Ethiopia shall be
^M:: deemed as one which is produced in
Ethiopia.
!6.
!6. [< < public bodies shall be in writing. Any
uO S[ Kv<:: uO communications not made in written form
M}[< TeK< Y` S`< to authenticity and confidentiality, and when
u> [ }L> G<@ technical conditions so permit, the Minister
STEL< c=[ O may issue a directive to determine the extent
u}T] U uO U by which communication by electronic
u?K?a>e < T[ means may be used in addition to or instead
T>eM K= LM:: of writing.
!7. oo
!7. 27. Language
1/
1) Except where a procurement proceeding
1
involves international bidders, for national
% %
bids in which only local bidders participate,
1 G the bid document shall be prepared and the
bid process shall be conducted in the
1 Z Amharic language. However, if it is found to
1 facilitate the procurement process, the public
% body concerned may authorize the use of
English language in the preparation of bid
1 G documents and bid proposals in a national bid
1 in which only local bidders participate,
i provided that such an act is not prejudicial to
fair competition.
2/ llM xqF G 7VpE

2) For procurement to be conducted by means
E q 7f/P 1 of international competitive bidding, all
documents shall have to be prepared in
English language.
gA 48)&5 L UT Uz q_R % 4 q
!8. }]
!8. }] wn 28. Qualification of Candidates
1/ uT the public body considers appropriate under
D< K?KA Se` TTEL the circumstances:
Kv<:-
a) that they possess the necessary
G/ uT>u< <M SW[ KSU professional and technical qualifications
T>eM S< > and competence, financial resources,
wn' e pU' SX] equipment and other physical facilities,
K?KA SM Y^' managerial capability, experience in the
< uT>Uu }v` Y^ procurement object, reputation, and the
S^` KA' SM"U personnel, to perform the contract;
c< M L<
K/ b) that they have the legal capacity to

enter into the contract;
N/ 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
1 proceedings for any of the foregoing;
1
d) subject to the directives to be issued by
S/ { the Minister, that they are registered in
the suppliers list;

e) that the period for which they were
suspended from participating in public
W/ 2! !B E( K!r procurement is over;
u[ J K4 RS
kk f) that they have renewed trade license
and fulfilled their obligations to pay
[/ c Y^ n K< taxes according to Ethiopian tax
u= w` QA u} laws;
< SW[ w` e
< } g) that they have a bank account.
c/ v H>dw K<
2/ SY SY] u?~ 2/ The public body may require candidates to

}] u=I k <e k provide such appropriate documentary
/1/ }[\ Se` T>TEK< evidence or other information as it may deem
SJ< KT[ eL> J< useful to satisfy itself that the candidates are
c S[ U K?KA S[- qualified in accordance with the criteria
=kù< Sp LM:: referred to in sub-article (1) of this Article.
3/ u=I k SW[ }]- 3/ Any requirement established pursuant to this

=TEK< T>ul Se Article shall be set forth in the bid documents
` u[ c U } or other documents for solicitation of
^ S] Gdw KSp proposals, and shall apply equally to all
uT> c <e SSM candidates.
Kv< c=J' uG<K SJ
Kv<::
gA 48)&6 L UT Uz q_R % 4 q
4/ SY SY] u?~ u=I k 4/ The public body shall evaluate the

<e k // SW[ T>kù< qualifications of candidates in accordance
c SS Se` with the criteria and procedures set forth in
SW[ uT[ }] the documents referred to in sub-article (3) of
wn SUU Ku:: this Article.
5/ SY SY] u?~ wn
L< SJ< KTe[ Gc} 5/ The public body shall disqualify a candidate
S[ < c k[u< who submits a document containing false
}] U wn< information for purposes of qualification; it
KT[ k[u< S[ SW[ shall disqualify a candidate if it finds at any
eI} Ku U M}TEL SJ< time that the information submitted
uT? }[ concerning the qualifications of the candidate
}] [ < =J< was materially inaccurate or materially
incomplete.
!9. )%,% CD 2!>
!9.
29. Technical Specification
1/ eKK "L prepared for the purpose of providing a
T><< n' v correct and complete description of the object
Y^ U MKA vI` of procurement and for the purpose of
T>d > SK creating conditions of fair and open
T Kv<:: competition between all candidates.
2/ > SK< 2/ The technical specifications shall clearly

i K= T>M< n describe the public bodys requirements with
^' kT@' #' respect to quality, performance, safety and
1 SK=<' SK where necessary dimensions, symbols,
<' S]<' e}hg<' UM terminology, packaging, marking and
~' U S^[~ H> labeling or the processes and methods of
=G J< vI` T> production and requirements relating to
TEL SJ< T>[u Y` conformity assessment procedures.
T>M SJ Ku::
3/ SY SY] u?~ T>< 3/ Technical specification prescribed by public

> bodies shall, as far as possible:
-
G/ u= U vQ] uS a) be in terms of performance rather than

`` L dJ ukT@ L design or descriptive characteristics;
K/ b) be based on national standards, where

1 such exist, or otherwise on
internationally recognized standards or
building codes;
N/ % G c) inviting open competition and devoid of

any statement having the effect of
restricting competition.
gA 48)&7 L UT Uz q_R % 4 q
4/ i 4/ There shall be no requirement or reference in

1 the technical specifications to a particular
{ trademark or name, patent, design or type,
specific original producer or service provider,
1 unless there is no sufficiently precise or
intelligible way of describing the
ST procurement requirements of the public body
and provided that words such asor
#G equivalent are included in the specifications.

['
". [ ' S] Gdw
30. Rejection of Bids, Proposals and Quotations
Tp[u= }K< 1) Public bedies may for one or more of the

u U uL uJ? S<K< uS<KM eI} SS< }[-
outcome of the bid;

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

c) bidders fail to meet the minimum criteria
N/ k[u< }^ u[ c set forth in the bid document;
L }kS< p} Se
` TTEK< c=J
d) the minimum price offered in the bid
S/ u[ k[u< p} = does not match with the market price
c=< T>c^ [ uT<
price advantage by re-advertising the
}hK T> SJ< c=
bid;
U
W/ u[< g J< }^ e) the price offered by the successful bidder

c< T> S exceeds the budgetary allocation made
u?~ K< < u uL for the procurement and the public body
c=J S u?~ cannot make up for the deficiency from
u~ M K?L U TTE any other source;
L TM c=J
f) it is proved that the bidding is not
[/ }] "N? sufficiently competitive as a result of
KTv uSSd^< um connivance among candidates.
<` KS[< c=[
gA 48)&8 L UT Uz q_R % 4 q
2/ i 2) Public bodies shall have to give notice to

/1/ candidates forth with disclosing the reasons
9% 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.

%1
3) If the decision to reject all bids results before
3/ [< <p T[< <X@ }
the opening date and time, the bids received
c< [< 1 shall be returned unopened to the candidates
S[ c K submitting them.
}] SSKe Kv<::
4// SY SY] u?
4) The procuring entity shall incur no liability
u<e k /1/ u}SK}< SW[
[' S] Gdw' towards candidates solely by virtue of its
Tp[u= e
"1. 31. Electronic Procurement
T>>e\ qu= M To achieve economy, transparency and

S =J KT[ =M H>~ modernization in public procurement, the
u?K?a> =U K=` Ministry may authorize the use of electronic
LM I Y^ L TM means as a method of procurement. In order to
=M:- implement this:
1/ ?c=< ]~ KUu 1) the Agency shall conduct a study and submit
[ }S J u? proposal on a system of conducting procurement
K?a> S[ M<< S by means of electronic exchange of information
U c^` uT k`vM which is appropriate to the level of development
of the country;
2/ ?c=< uSY SY] u? 2) the Agency shall ensure that public bodies,
pû= u}q] "KA suppliers and supervising entities develop the
c^\ KS}u` T>eM pU capacity required to implement the system;
S\ [M
3) upon due consideration of the proposed system of
3/ T>>e\ k[u< u?K?}a> effecting procurement by means of electronic
S[ M<< SU exchange of information and where he is satisfied
c^` uSS`S` nL that the overall system and capacity of public
SY SY] u? bodies and suppliers allows the carrying out of
pû= c^` pU procurement through electronic exchange of
u?K?a>e S[ M<< information, the Minister may authorize the
KSU < wKA c=U implementation of the electronic system in all or
}u=< c^` e` uS` certain public procurement proceedings by
Y`~ u}c =J operation of the proposed electronic system.
K=` LM::
gA 48)&9 L UT Uz q_R % 4 q
"2 2! E Z5 A4 Y-

"2. Y- 32. Rules of Ethics in Public Procurement and
Uv` Property Administration
1/ AA AVWp7f/ E,s E

1) Subject to the details to be specified in the
<b/ 22&
E Xd ! directive to be issued by the Minister,
Z5 A4 Y^ C( 37s personnel engaged in public procurement or
tù= EN_ P!I property administration shall have to observe
2X9= N/ !I`f/ the following rules of ethics in the discharge

N/_Y- of their duties:
a) the obligations to notify any actual or possible

G// }[ U K=` T>M conflict of interest and isolate oneself from
pU Tdp any processes involving such conflict;
ê N=~ TKM
b) to give candidates and suppliers equal
K/ K }] pû=
<M S` SU opportunity of competition and
M Se performance;
c) keep in secret any confidential information

N/ ` T>
<f/ S concerning the public body, candidate or
Y SY] u?~ E E; supplier which he/she came to know on
<&9= <(P A0`v9= account of his/her duty;
256 E 2O 0
d) to reject any gift or offer of an
S/ employment opportunity or anything of
% 1 monetary value or service;

W/ # e) to report to the law enforcement agencies

G any intended or completed action of
corruption and contribute to the effort to
G G G % fight corruption and malpractice;

f) demonstrate concern to public resource
[/ % %G % and property.

2) Any candidate or supplier shall have to refrain
2/ TM Without prejudice the provisions of Chapter
T<U }v` ^c< TKM Fifteen of this Proclamation, any candidate or
Ku u=I U^ Y^ supplier shall have the responsibility:
Ue }SK}< }uk J-
a) with an intention to influence the
G/ SY SY] u?~ L decision or action of the head or staff
U W^} }v` U <X@ member of the public body or persuade
KTv U v< W- disposal, not to give directly or indirectly
^` KTeK uSK SM uk- gifts of any kind in the form of
U u}] S T-
<U e
inducement, not to promise to give gifts,
U e KSe nM not to offer employment opportunity or
U Y^ M U K?L anything of monetary value or service;
T<U w K< `
U MKA w
gA 48)' L UT Uz q_R % 4 q
K/ Z 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;
1 -
c) not to connive with another candidate in
an act of false competition in order to
/ v
X 0P 7!x 7- get unfair advantages;
3Z NC E; <& 2-
2O [3 /@@ A7 d) to report to the law enforcement agencies
@5! any intended or completed action of
2/ F` j4
<f/ UVOs corruption which he came to know
K3y <(P VOs + during the procurement proceedings and
!I` z! AVWE AeC contribute to the effort to fight
7<0 E + E Z{ corruption and malpractice.
A3` 2Q E45/
5 7Aw
33. Methods of Procurement
1
"3. 1) The following methods shall be used in

public procurement:
1/ b2! !B xf[M EN_
!B |9= ` C( (/C_Y-
a) Open Bidding;
}/ ! J5Kw b) Request for Proposals;
K/ 2<4&
[Z 2O~
EV c) Two stage Tendering;
pP !Bw
N/ 456 J5K EVpP d) Restricted Tendering;

!Bw
e) Request for Quotation;
S/ / J5Kw
f) Direct Procurement.
W/ Q 705v
EVpP !Bw
2) Except as otherwise provided in this
[/ NA@ A0`v EVpP ! Proclamation, public bodies shall use open
bidding as the preferred procedure of
2/ ST 1 - procurement.
i G-
Z

3) Public bodies may use a method other than
open bidding only where conditions for use
3/ i
of such other method stipulated under this
Z Z
Proclamation are satisfied.
ST
% G
4) Public bodies shall not split procurement
requirements for a given quantity of goods,
4/ Z
works or services with the intention of
Z
avoiding the preferred procurement
i 1
procedure stated under this Proclamation or
# in the procurement directive.
Z

gA 48)'1 L UT Uz q_R % 4 q
"4 SY M ` 34. Public Private Partnership
T>>e\ SY M i` T>- The Minister may issue directive prescribing the

Sc[u G<@ i`< `` rules governing the formation of Public Private
U T>e SS] M:: Partnership and the modes of implementation of
such partnership.

M [
[ U CHAPTER FOUR
PROCEDURE OF OPEN TENDERING
"5 [
"5. [ Tem
Tem
35. Advertisements
1// 1
G 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/ i
2) Where the public body finds it necessary, it
/1/ may, in addition to the medium mentioned in
% G Z sub article (1) of this Article, advertise the
1 bid on a national radio and television.
3/ 3) The time allowed for preparation of bids shall

Z - not be less than the minimum number of days
1 1 % 1 stated in the procurement directives.

V"6/
"6/ [
"6 [ ]
] 36. Invitation to Bid
[ ] T>}K< u}T] u?c=< Apart from containing the following particulars, the
T>< Su [ c SW[ invitation to bid shall be prepared in accordance with
uT[ S Ku:- the standard bidding document to be developed by the
Agency:
G/ i G a) the name and address of the public

p body;
K/ # G
b) a brief description of the goods, works or

services to be procured;
N/ 1
c) the means and conditions for obtaining
-ST the bidding documents and the place
G 1 from which they may be obtained;
y
d) the place and deadline for the submission
S/ % %- of bids; and
y G p
G
e) the place and time for opening of bids,
W/ y G
S
along with an announcement that bidders
or their representatives are allowed to
attend at the opening of bids.
gA 48)'2 L UT Uz q_R % 4 q
V"7
"7 [
[ c
c 37. Bidding Documents
u}^ S"M T>[< <` u}- The bidding documents shall contain sufficient
TEL' KM} }v SW[ vK< G<@
="H@ KT[ [< c u?c=<
information to enable competition among the
}< Su [ c SW[ bidders to take place on the basis of complete,
uT[ um S[ u SM< } SJ neutral and objective terms. In particular, bidding
Ku:: u}KU c T>}K< K=" documents must include:
vM:-
G/ 2>5? 1@ 7 705Z a) instructions for the preparation and

AVCR X] 22&
9= submission of bids;
K/ 2>5? 1 - b) information about the final date for receipt of
p 1 - bids, the address to which bids must be sent,
p -
the date, hour and place of opening, as well
G y -
as an announcement that bidders or their
S
representatives are allowed to attend the
1-

opening ceremony;
N/ 9% c) bid submission forms and, where applicable,

S %1 forms of bid security to be provided;

S/ G 1 d) the number of copies to be submitted with the

% original bid;
W/ # G ST e) the general and specific conditions of the

contract;
[/ %1 # % f) specification of requirements, including time

G limit for delivery or completion of the task,
% % as appropriate;
#G

c/ %# g) evidence to be provided by the bidder to

- demonstrate its qualifications as well as its
1 S fiscal and legal standing;
G G 1 -
%
g/ h) the period during which the bid remains in force;
k/ G - (i) the criteria and the points given to each

G 1 criterion for evaluation of bids and award of
G - the contract;

1%
u/ Z (j) a reservation to the effect that the public
i G body may reject all bids at any time prior to
G the notification of award; and

%
G
gA 48)'2 L UT Uz q_R % 4 q
}/ E>s E
<b/ 22&

iK VM !B9= / (k) the price adjustments that may be made
AVWpP <0 Q 7eN
K=[ during contract implementation and the
T>M 2X] E Q 7e conditions and the manner under which such
N
/ E45! iK E AVW price adjustments can be made to special
p+YY procurements prescribed by the Minister.
V"8/
"8/ [
"8 [ c i 38. Provision of Bidding Documents
1/[ c Sg K[< 1) Bid documents shall be made available to

c c K candidates at a price not exceeding the cost
}] KTp[w < of reproduction and delivery of such
vMuK S}S ùM documents to candidates.
2/ [ c [? 2) The bidding document shall be delivered to

Ua [< eT>u >? candidates on working days between the date
[e vK< e^ k u[ of publication of the invitation to bid and the
Tem< u}K< "D%E K closing date of the bid and in the manner
}] =è S[ K- specified in the invitation to bid.
u
3/ SY SY] u?~ A!IZ Xd 3) Where it deems it to be appropriate the public

h
x/ J5K 3 W Ecc body may make the bidding document
available to candidates free of charge.
UV0@ (=C YY
V"9
"9 u[
u[ c L eKT>[ Thh 39. Modifications to Bidding Ddocuments
1/ SY SY] u? u^d< 1) At any time prior to the deadline for submission of

U [ c < bids, the public body may, on its own initiative or
}] uT>kù< o in response to an inquiry by a candidate having
Sh c Tp[u= >? purchased the bidding documents, modify the
w TK u [ c bidding documents by issuing an addendum,
KThhM LK<:: which becomes an integral part of the bidding
documents.
2/ }[< Thh uO } 2) Any addendum shall be communicated
[ c K< }]- promptly to all candidates having purchased
9<K< the bid documents at the same time.
Ku::
3/ SY SY] u?~ [ 3) If the public body considers it necessary to

c ThhM eL> J amend the bidding documents and if it
< uThh< }SK~ determines that there is no enough time to
Te}" KT[ um >? K?K incorporate the modification, it may postpone
SJ< }[ J }]- the closing date by a number of days,
Thh< SW[ `< depending on the procurement object, which
[ c KT um >? is sufficient to enable the bidders to take the
=^< KT[ < addendum into account in preparing their
vI` SW[ uT[ [<
bids.
Tp[u= >? K}c< k K=Û
LM::
gA 48)'4 L UT Uz q_R % 4 q
V#. [
[ Teu]
Teu] 40. Bid Security
1/ SY SY] u? uT> 1) Public bodies shall include in the bidding

[ c }^ c- documents a condition that bids must be
< ` [ Teu] Tp[w accompanied by a bid security. The amount
Kv< SK Kv<:: of such bid security shall be sufficient to
[ Teu]< S u[< discourage irresponsible bidders.
L u}VL< G<@ Td}
KTek[ T>eM
2/ AM U AM /1/ p/ 2) Notwithstanding the provision of sub-article

vdP J5K 7N &
7
A (1) of this Article, procurement in respect of
E
V !If/ !B E which bid security is required and the
J5K TN &
< 2O E,s amount of bid security thereof, is to be
E
<b/ 22&
eMYY prescribed by the directive to be issued by the
Minister.
3/ [ Teu]< uT>qu
>? <e }^ ^c< <\ 3/ A bid security will be forfeited if a bidder
"KK U g< }^ withdraws his bid within the validity period
uT>SK g~ }KK u%EL thereof or in the case of a successful bidder,
<K< KS[U n J "M} if the bidder repudiates the contract or fails to
U =k`w }k< <M furnish performance security, if so required.
Teu] "Lk[u [ Teu]<
<è [M::
#1. S[ c eKTp[w eKSkuM

#1. 41. Submission and Receipt of Bids
1/ S[ c uO }
}`Vu ug ?yKA <e 1/ Bids shall be submitted in writing, signed and
J u[ Tem< }SK- in a sealed envelope, to the place and before
}< >? w u u}K< x the deadline stated in the invitation to bid.
u= S[ Ku::
2// S[ c Mp uSJ< u[ 2/ The public body shall give a receipt to the

X <e K=kS TM J
bidder indicating the time and date on which
1 SY SY] u?~
the bid document was submitted, where it
y u= }[u
k c T>d T[ K becomes impossible to put the bid document
}]< Se Ku:: in a bid box due to its large size.
3/ Without prejudice to the provisions of sub-
3/ AM U AM /2/ 1- article (2) of this Article, a bid document
E4O M Xd 2>5? recieved after the deadline for submission
3 705v
N<3/ RS 'C shall be returned unopened to the bidder.
M5 3@ MI( A(d5/PYY
#2. [
#2. [ eKS
eKS 42. Opening of Bids
1/ SY SY] u?~ u[ 1/ At the time stipulated in the bidding
c }SK}< S[ c document for opening of bids, which should
Tp[u= }c< >? w - follow immediately after the deadline for
}kk =<<' S[ c submission of bids, the public body shall
Tp[u= >? w u open all bids received before the deadline.
S[ c S Ku::
gA 48)'5 L UT Uz q_R % 4 q
2/ }^ eU u 2/ The name of the bidder and the total amount

S[ c k[u< S[ of each bid, discounts offered and any such
' }c pi SY information as the public body deems
SY] u?~ ST necessary to let the bidders know their
}^ ^ [< KTp relative rank shall be read out aloud and
[M wKA T>Uv< K?KA recorded and a copy of the record shall be
S[ vK U Suw made available to any bidder on request.
SSw =G? }Su< `` =<
3/. Notwithstanding the provisions of sub
S[ Ku::
article (2) of this Article, the envelope
3/// u=I k <e k /2/ containing the price offered by the bidder
}< u=Ù > e shall be read after the evaluation of the
S] Gdw uG<K e k[u technical proposal where technical and
uT>Ju >? S[ < financial proposals are submitted in two
T>uu< > UT< }- separate envelops.
kk u%EL JM::
#3. S[ c eKSS`S` eKS

#3. 43. Examination and Evaluation of Bids
UU
UU
1) The public body may ask bidders for
1/ [< KSS`S` UT< clarification of their bids in order to assist in
KT T>[ J c=' S- the examination and evaluation of bids;
Y SY] u?~ }^ vk[u< however, no change in the substance of the
S[ c L Tw^] bid, including changes in price, shall be
c< K=p LM:: JU sought, offered or permitted.
K< Ua S[ c L
SW[ K< T>eM Gdw
Tp[w U Sk MU::
2) Notwithstanding sub-article (1) of this
2/ u=I k <e k // }S- Article, the public body shall correct
K}< u=Ù SY SY] arithmetical errors that are discovered during
u?~ u[ U`S^dw eI} KT[U LM:: shall give prompt notice of any such
SY SY] u?~ =I correction to the bidder that submitted the
Te}" S[ c bid.
Lk[u< }^ u SK
Ku::
3) Without preicdice to sub-article (4) of this
3// // -
Article, the public body may regard a bid as
responsive only if it conforms to salient
i 1 requirements set forth in the bidding
% documents.
1 ST

1
4/ u[< c }[\ vI]' 4) The public body may regard a bid as responsive
<M nKA' G<@ K?KAU even if it contains minor deviations that do not
}L> x ` u}c [ M materially alter or depart from the characteristics,
u=[M np oversights that are capable of being corrected
eI} U u=[<U S
without touching on the substance of the bid. Any
Y SY] i [< }TEL such deviations shall be quantified, to the extent
À K=kuM LM:: T<U M
possible, and appropriately taken account of in the
e}K [e uG }M u[
UT <` p U <e evaluation and comparison of bids.
Sv Ku::
gA 48)'6 L UT Uz q_R % 4 q
5/ T<U SY SY] u? 5) Any public body shall not award a contract

=I u }[\ TTEK< when:
}^ g ` SU[
KuU:-
a) the bidder has failed to demonstrate, in
G/ }^ uk the manner provided in Article 28(1) of
!8(1) this Proclamation, that it is qualified;

K/ b) the bidder does not accept a correction

/2/ of an arithmetical error made pursuant to
% sub-article (2) of this Article;

N/ 1 c) the bid is not responsive.

1 ST

6/ SY SY] u?~ u=I k 6) In the process of selecting the successful

<e k /8/ u}< SW[ bidder, the public body shall only consider
g< }^ KSU[ u[ substantially responsive bids for further
c u}SK}< UT Se` evaluation and comparison, as defined in sub-
SW[ }L>< TEK< S[ article (8) of this Article in accordance with
c SUU T` Ku:: the criteria set forth in the bidding
u[ c M}SK} T] documents. No criterion shall be used that
Se` upU L K=<M has not been set forth in the bidding
MU:: documents.
7// 7f/P >`= 2>5? 3 N2- 7) No bidder may be required to change the
N/ / J5K/ A 2X price offered in his bid or otherwise modify

M5 / 2>5? Q Ec/ his proposal or to assume obligation to do so
<(P
M5 / 2<4&
[Z Ec- except as set forth in the bidding document.

L. <(P ( 2VpP !|K
EcI UO0 <(P U4@ A(= PYY
8) The successful bid shall be:
8/ u[ g J T>S[<-
a) the bid that is found to be responsive to
G/ u[ UT > SS-
the technical requirements and with the
TTEL~ }[ e-
lowest evaluated price;
} k[u }^
K/ SY SY] u?~ u[- b) if the public body has so stipulated in the

< c <e g< }- bidding documents, the bid offering
^ T>S[u Se` better economic advantage ascertained
K J' u[ c W[ on the basis of factors affecting the
< [< =T> c? economic value of the bid which have
T>e< Se` SW[ been specified in the bidding documents,
uT[ uT>"H@ UT } which factors shall, to the extent
hK =T> kT@ K< practicable, be objective and
[ Ndw k[u< }^ quantifiable, and shall be given a relative
g JM:: JU Se`~ weight in the evaluation procedure or be
u}v G<@ L }SW[}' expressed in monetary terms wherever
u K=K T>M J practicable;
uUT< H> ^ w
T>c< e}K [e u
w T>K SJ Ku
gA 48)'7 L UT Uz q_R % 4 q
N/ T>>e\ uT> <`` c) where it is ascertained in post evaluation of

SS] uT>c< Sc[ u=I bids that the legal, financial and technical
<e k uM (G) U (K) standing of the candidate selected as the
Sc[ }S[< }^ I- successful bidder in accordance with
' e > pU paragraph (a) or (b) of this sub-article
uS[ c L u}kS< conforms to the requirements stated in the
Sc[ SJ< uQ[ UT bidding document.
c=[
9/ SY SY] u?~ UT< 9) The public body shall prepare an evaluation

<? u\ T>M UT report, containing a summary of the
]` T Ku:: examination and evaluation of bids.
#4. uT>e` eKT>< Wâ

#4. 44. Process to be Confidential
[< }}u >? e [ After the opening of bids, information relating to

U`S^' Tw^]' UT g<
}^ uT>SK k[u< <X@ Gdw `
the examination, clarification, and evaluation of
}< S[ uT>e=` Sup bids and recommendations for award must not be
Kv< c=J' g< }^ eT>K disclosed to bidders or other persons not officially
[e K}^ U Y^< H> ` concerned with this process until the award of the
< KK?L< c SK Kv<U:: contract is announced.
45. Matters subject for Negotiation with the

#5. G
#5. Successful Bidder

1) The public body may negotiate with the
1/ SY SY] u?~ g< successful bidder on matters of contract
}^ ` [ c L performance not dealt within the bidding
vM}kc< <M U < L document.
`` K=` LM
2) Except in a single source procurement
2// uk $ L u}kc<
Sc[ pû= uk KT>U
provided for in Article 50 of this
"MJ ue}k` g< }^ Proclamation the public body may not
vk[u< ` < negotiate on the price offered by the
vL< < L SY SY] successful bidder and on other issues related
u?~ g< }^ ` `` to price.
T[ MU
#6. g eKSK <M eKS^[U

#6. 46. Notification of Award and Signing of Contract
1/ SY SY] u?
1) Prior to the expiry of the period of bid validity, the
1 T>qu public body shall notify the successful bidder that
k TK u u[< g KJ<
its bid has been accepted. The notification of
}^ g~ SK Kv<::
g SK Tem< <K< award shall specify the time within which the
T>[Uu k T>M JM:: contract must be signed. The unsuccessful bidders
u[< }g KJ< }Û shall also be informed as to who the successful
g< eU }gu U bidder is and why they have lost the bid.
T>M Tem %i K=`d<
vM::
2) The existence of a contract shall be
2/ uSY SY] u?~ confirmed through the signature of a contract
upû=< S"M <M }Se`M document incorporating all agreements
T>vK< uG<K~ } between the parties.
eUU }[cv< <
uS<K< T>< <M c c=[U
JM::
gA 48)'8 L UT Uz q_R % 4 q
3/ SY SY] u?~ K}g 3) The contract shall not be signed by the public
}^ }g< T>M< body prior to the receipt of the notice by the
Tem< S[c< { unsuccessful bidder and before the period
}SK}< specified in the directive to be issued by the
>? w TK u < <M
S[U KuU:: Minister has lapsed.
4/ SY SY] u?~ <M e}- 4) The procedures that public body has to follow
` uT>SK K=}M T>v< in administering the contract shall be
W^` T>>e\ uT>< SS- prescribed by a directive to be issued by the
] cM:: Minister.
V#7. <M Teu] 47. Contract Security
pû=< u<K< SW[ vKSS< A supplier shall provide the public body with a
uSY SY] u?~ L KT>`c< contract security to make good any damage the
< T""h T><M <M Teu] public body may sustain as a result of default by
K i Se Ku:: the supplier under the contract. The type of
<M Teu] T>pv< procurement for which contract security is
' <M Teu]< required and the type and amount of contract
S T>>e\ uT>< SS] security shall be determined by a directive to be
cM:: issued by the Minister.
48. Advance Payment

#8. pT>
#8.
1) The amount of advance payment that may be
1/ uSY U Kp^- allowed to suppliers in public procurement
u=< T>c< pT> and the manner in which it is made available
S G T>>e\ shall be determined by the directive to be
uT> SS] issued by the Minister.
G
2/ pT> K=U T>K< 2) Advance payment may be effected only where

pû=< upT> SM a supplier furnishes advance payment
T>c< w S ` guarantee in an amount equal to the advance
<M J e c=k`w payment.
JM::
CHAPTER FIVE
U^ Ue
RESTRICTED TENDERING
<e [
[
49. Conditions for use of Restricted Tendering
#9. u<e [
#9. [ KSkU STEL Kv<
Kv<
G<@
G<@
Public bodies may use restricted tendering as a
SY SY] u? u<e [ method of procurement only where the following
SU T>K< T>}K< conditions are satisfied:
G<@ c=TEK< w <:-
1/ n<' v ` Y^ suppliers;
2/ T>>e\ uT> 2) the cost of procurement does not exceed the

SS] % threshold specified in respect of restricted
tendering in the directive to be issued by the
Minister; or
gA 48)'9 L UT Uz q_R % 4 q
3/ AA AVp+ 22&

E 3) where a repeated advertisement of the
Xd 4E J5K <T invitation to bid fails to attract bidders in
<&
x hX respect of a procurement subject to the
directive to be issued by the Minister.
$. <e [ WpU
WpU
[ Wp 50. Procedure for Restricted Tendering
<e [ Y` M [ Restricted tendering procedures are the same as

` }Sdd c=J<' <e [ those applied in open tendering, except that:
T>}K< M Wâ }LM:-
1/ uk #9(1) SW[ 1) where the object of procurement is available

n<' - v ` Y^<' only with limited suppliers in accordance
U` U }L>< K?L MKA with Article 49(1) of this Proclamation the
T>< } c< pû= w invitation to bid shall be sent to all such
c=J [< ] K=G< pû=- suppliers;
uS<K< LM
2/ <e [< T>"N?< 2) if restricted tendering is used for the reason stated
uk #9(2) U (3) L in Article 49 sub-articles(2) or (3) of this
u}kc- }< SW[ basis of the following consideration:
uT[ TM-
a) any selection shall allow opportunities
G/ S^[< upû= `` <e for suppliers on the list,
K}Su< N J M
T>e SJ ùM
b) the number of suppliers to whom the
K/ ] T>[L< }] invitation to bid is sent shall be such that
w <?T <` =`
KT[ T>eM SJ< S[
it is sufficient to ensure effective
Ku c=J' e}K [e } competition and shall not as far as
] l` 5 Te KuU possible be less than five compitators.
3/ K c T>k< 3) the time allowed for preparation of bids shall

>? K=I u SS]< not be less than the minimum number of days
}c< e}< k w c stated in the procurement directive for this
K=J MU:: JU K[< method of procurement. However, if all
] }[L< }^ uS<K< suppliers invited to participate in the bid have
S[ c< [< S- submitted their bids before the closing date,
> k u "eu< SY the public body may open the bid ahead of
SY] u?~ K}^ um pT> schedule by giving bidders prior notice;
Tem uSe [< u-
[ Tem< L }kS< k
ekV K= LM
4) if the public body uses restricted tendering for
4/ SY SY] u?~ the reason stated on Article 49(1) of this
Proclamation, it shall determine whether it is
k #9(1) L }K< necessary to require the candidates to submit
[ Teu] Tp[w T>- bid security.
eM SJ KSJ< eM::
gA 48)( L UT Uz q_R % 4 q
U^ ee CHAPTER SIX
pû= T>U DIRECT PROCUREMENT
$1. pû= KS
$1. KSU STEL 51. Conditions for use of Direct Procurement
Kv< G<@
G<@

1/ SY SY] u? 1) Public bodies may use direct procurement

pû= SU T>K< T>-
}K< G<@ c=TEK< w <:- only where the following conditions are
satisfied:
G/ #
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;
K/ # - b) for additional deliveries of goods by the
# -
original supplier which are intended

either as parts of replacement for

Z -
existing supplies, services or
- installations or as the extension of
i 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;
/ Z % - c) within limits defined in the procurement

ST directive, when additional works, which have
been not included in the initial contract have,
- through unforeseeable circumstances,
become necessary since the separation of the
1 G { additional works from the initial contract
would be difficult for technical or economic
< 1
reasons;
-
1

/ Z %
d) within limits defined in the procurement
G - directives, for new works consisting of
- the repetition of similar works which
Z G1 1 conform to a basic project of which an
y initial contract has been awarded on the
basis of open or restricted bidding;

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

gA 48)(1 L UT Uz q_R % 4 q
/ 1 f) the head of the public body has

G determined that the need is one of
i pressing emergency in which delay
would create serious problems and
i therefore injurious to the performance of
Z that public body;
g) where situations arise in which shopping

3/ AA AVWp+ E,s E
-
becomes necessary to meet the special
<b/ 22&
E<3 Xd procurement needs of public bodies. The
2! 2F&
GT= Ed- manner of implementation of this
`f/ !B CD 7
provision shall be prescribed by the
N
M7 !B 2VpP E
- directive to be issued by the Minister;
@ iK9= hVOsw
/ K` >? T>q KSY h) for purchase of goods made under

SY] u?~ M pU uT>e exceptionally advantageous conditions
G<@ T>U n c=J <:: which only arise in the very short term.
I <e k T>KK< uS-
u pû= M}WT\ c This provision is intended to cover
KT>g<< n c=J' uSu unusual disposals by firms, which are
pû= }WT\ pû= - not normally suppliers. It is not intended
<[< T>S< - to cover routine purchases from regular
UÙ:: suppliers.
2/ 2! 2F&
GT= !B 22- 2) Public bodies may use direct procurement
&
/ NE<3 Z 2O

when the contract price does not exceed an
np !B9= NA@ A0`v EVpP
amount stated in the procurement directive.
!B | 2OMP 2! (=C_YY
3/ AM U AM /1//3/ E 3) It shall not be necessary to conclude a

/2/ 235 NA@ A0`v MK contract in respect of direct procurements
EVp+ !B9= / 2QQ effected in accordance with sub-articles (1)
AVCR A(XPYY (g) and (2) of this Article.
4/ SY SY] u? I 4) Public bodies shall ensure that this method is

u }] S"M <` not resorted to with a view to avoiding
` U u }] possible competition or in a manner which
S"M M KS` ex pU L
MK SJ< T[ L would constitute a means of discrimination
Kv<:: among candidates.
T>NN<
$2.
52. Procedure for Direct Procurement
1/ i
$1 /1/ 1 1) When the public body engages in direct
Z procurement according to Article 51(1) of
Z this Proclamation, it shall prepare a
G # description of its needs and any special
% requirements as to quality, quantity, terms
G ST % and time of delivery, and shall be free to
G negotiate on price and conditions of offer
with the sole candidate. Without prejudice
$1 /3/ 1 to the provisions of sub-article (3) of
Article 51 of this Proclamation, any
Z 1 agreement reached to conduct the
S procurement shall be confirmed by a
contract signed by both parties.
gA 48)(2 L UT Uz q_R % 4 q
2/ 2) The salient points to focus on in the

-1y negotiation of contracts for direct
i procurements shall be approved by the
head of the public body concerned and
communicated to the negotiators.
U^ cv CHAPTER SEVEN
uS] Ndw Sm T>U REQUEST FOR PROPOSALS
$3. uS] Gdw Sm

$3. KS 53. Conditions for use of Request for Proposal
U STEL Kv< G<@
G<@
Public bodies may engage in procurement by
i means of request for proposals when it seeks to
9% Z obtain consultancy services or contracts for which
the component of consultancy services represents
$ more than 50% of the amount of the contract.
Z 1
54. Procedure for Request for Proposals
$4. 9% G
$4. Z

1/ 1) The selection of candidates for consultancy

1 % services above a threshold to be determined
1 - by a directive shall be made after inviting
9- candidates to submit expression of interest.

G
2) Requests for proposals shall be addressed to
2/ 9% not less than three and not more than seven
1 G candidates selected by the public body.
i

3/ 9% 3) A request for proposals shall contain at least

the following information:
-
G/ a) the name and address of the procuring

entity;
K/ b) description of the services required,

normally through terms of reference;
N/ c) in the case of consultancy assignments

which may involve potential conflicts of
1 interest, a reminder that candidates for
- such assignments must exclude
- themselves from procurement of goods
G # yG - and works which may follow as a result
- of or in connection with the
consultancy agreement;
gA 48)(3 L UT Uz q_R % 4 q
/ 9y d) the criteria for evaluating the proposals,

G - the relative weight to be given to price
1% and other criteria, and the manner in
9% which they will be applied in the
evaluation of proposals;

e) place and deadline for the submission of
/ 9% % proposals.
yG p
4/ 9% 4) Candidates shall be given adequate time in

which to prepare their proposals; such time
frame shall be determined by the directive to
Z G be issued by the Minister.
5/ i 5) The public body may negotiate with the first

- ranked candidate with respect to the nature,
9 - volume and organization of the services
G included in their proposals.

6/ i - 6) Any award by the public body shall be made

G1 to the candidate whose proposal is most
9% advantageous, determined in accordance with
1 the criteria and procedures for evaluating
proposals set forth in the request for
9% #
proposals.
1
U^ eU
u Tp[u= T>U CHAPTER EIGHT
REQUEST FOR QUOTATION
$5. u Tp[u= KT>U STEL 55. Conditions for use of Request for Quotations
Kv< G<@
G<@

i means of request for quotations for the purchase
Z Z { of readily available goods or for procurement of
Z 1 % works or services for which there is an
G % 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
1 Minister.
$6. u Tp[u= T>"N? U

$6. 56. Procedure for Request of Quotations
1/ i 1) Public bodies shall request quotations from
1 as many candidates as practicable, but from
at least three, if possible from among
suppliers registered in the suppliers list.

gA 48)(4 L UT Uz q_R % 4 q
2/ Q 705v
KT>U A@ A( 2) In cases where procurements are made using
!B T^ pû= e"K< [e request for quotation, as long as other
4E <3] A0`v9= w suppliers, who can supply the same goods,
uSu T` MU:: services or works are available, the public
uSJ<U SY SY] u?~ body shall not repeatedly invite the same
e}K [e 37s suppliers to submit their quotations. The
$"= E; <&9= 2bb public body shall ensure that equal
S` E@ 23OH 75 opportunity of participation in public
A YY procurement is given to all candidates
engaged in the business.
3/ Z
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
G S services as well as other special
i requirements.

4/ Z i 4) The public body shall give adequate time to

candidates in which to prepare their
quotations.

5/ i 5) A purchase order shall be placed with the

/3// candidate who meets the requirements of the
ST G 1 public body stipulated in sub- article (3) of
Z this Article.
U^ CHAPTER NINE
uG<K [ [
[ T>U TWO - STAGE BIDDING
$7. uG<K [
$7. [ [
[ KSU STE 57. Conditions for use of Two-Stage Bidding
L Kv<
Kv< G<@
G<@

i S
Z means of two-stage bidding:
ST % 1-
1/ #G 1) when it is not feasible for the public body to
i formulate detailed specifications for the
goods or works and in the case of services, to
identify their characteristics and, in order to
G obtain the most satisfactory solution to its
i Z procurement needs;

2) when the public body seeks to enter into a
2/ !B/ Ee4/ contract for the purpose of research,
# 7P5 <(P experiment, study or development, except
PP E 7 <9= 2e where the contract includes the production of
Ee X @5 2!F 2F&
GH goods in quantities sufficient to establish
PP +N` E 7 their commercial viability or to recover
F`9= 7N< E
= / research and development costs;
2VpP hV !
gA 48)(5 L UT Uz q_R % 4 q
3/ 3) where bid proceedings are initiated but no

# bids are submitted as a result of the nature
G of the object of procurement not being
clearly described or where all bids are
1 rejected due to failure on the part of the
public body concerned to draw up a clear and
G 1 i complete specification;

4) because of the technical character of the
4/ E E9= !IK required goods or works, or because of the
F`9= P% E $"= A !"T= nature of the consultancy or other services it
Iz( <(P V A2 %T NE; is necessary for the public body to negotiate
<&9= @@ 7@5!
with the suppliers.
h
V !
58. Procedure for Two-Stage Bidding
$8. G<K [ [
$8. [ U
U
1/ G1 S
1) The solicitation documents shall call upon
suppliers to submit, in the first stage of the
two-stage bidding proceedings, initial tenders
9% containing their proposals without a tender
1 price. The solicitation documents may solicit
{ 1 proposal relating to the technical, quality or
# other characteristics of the goods, works or
services as well as to contractual terms and
S y #G conditions of supply, and where relevant the
ST professional and technical competence and
%1 qualifications of the suppliers.
G {

2/ SY SY] u?~ 22&

/ 2) The public body shall identify responsive
M5y 2<4&
[1= N!B bids by evaluating the proposals submitted by
CDH AW 2PP MI(
/ the bidders at the first stage of the bid
2<4&
[Z
M5y >`= proceeding against its requirements. The
(
YY <0 public body may without prejudice to their
i E4AVCRH NE; intellectual property rights at this stage hold
<&9= CM5y 2<4&
discussion with the candidates on the content
[Z <&9= J5K 256 E of their proposals.
IG 2Z OZg /(( U
4!
(=C YY
3) The public body shall draw up a specification
3/ SY SY] u?~ 22&
/ which is more appropriate to its requirements
M5y 2<4&
[1= N!B on the basis of the evaluation against the
CDH AW 2PP CDH L requirements of the proposals submitted to it
U
C E= A@ < X AA at the first stage of the bid proceeding. It

6 YY / AA 22- shall then proceed to communicate the
&
/ MI(
/ 2<4&
revised specification to the candidates who
[Z CM5y >`= 7<0 submitted responsible bids at the first stage
JP LL/ AA and invite such candidates to submit
235 2>5? [If/ E J5K proposals on the basis of the revised
7N &
% specification.
gA 48)(6 L UT Uz q_R % 4 q
4/ AM U AM /3/ p/ 4) In formulating the revised specification in

2W5 i Ac accordance with sub article (3) of this
1 Article, the public body may delete or modify
G # any aspect, originally set forth in the
{ solicitation documents of the technical or
G 1 G quality characteristics of the goods, works
S G or services to be procured and any criterion
G- originally set forth in those documents for
pp evaluating and comparing bids and for
G
ascertaining the successful bids and may add

new characteristics or criteria that conform
G pp
p
with this Proclamation. Any such deletion,
9% % - modification or addition shall be
communicated to suppliers in the invitation
to submit final bids.
5/ LL/ AA 235 - 5) A supplier not wishing to participate in the

/ J5K 2
V second stage of tendering in accordance with
the reformulated specification may withdraw
>`= `f/ N/@@s
from the proceeding.
7! (=C_YY
6/ SY SY] u?~ / 6) The public body shall evaluate the bids

M5y r= submitted at the second stage to ascertain the
#3 1 successful bidder pursuant to the provisions
2PP A/ (
YY of Article 43 of this Proclamation.
7/
i 7) The public body may engage in negotiation
with the first ranking bidder concerning any
aspect of its bid, except price.

U^ Y`
KU k /@@ EVpP CHAPTER TEN
INTERNATIONAL COMPETITIVE BIDDING
$9. KU k
$9.
59. Open International Bidding
1/
1) Open international bidding shall be used
S whenever in national open bidding an
1 effective competition cannot be obtained
1 unless foreign firms are invited to bid or for
Z { procurements above a threshold level for
% national bidding to be determined by a
1 directive to be issued by the Minister
2/ /1/ - 2) A procurement may be effected by means of
Z { national competitive bidding notwithstanding that
% the cost of the procurement exceeds the threshold
established in the directive for national bidding if
% Z it is ascertained that the required object of
procurement is available only locally.
gA 48)(7 L UT Uz q_R % 4 q
3/ Z 3) Open international bidding shall respect the

G provisions of Chapter Four of this
Proclamation as well as the following
- procedures:
G/ G a) the invitation to bid and the bid

1 documents shall be in the English
1 language;

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

c) the time allowed for submission of bids
N/ 1 shall be sufficient for the invitation to
reach candidates and for enabling them
G to prepare and submit bids. In any case it
shall not be less than the time prescribed
9 %
by the directive to be issued by the

Minister;
{
1

d) technical specifications of the goods, works
and services shall be compatible with
S/ #G 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
W/ - documents to be presented by them in
S G-
Ethiopian Birr, or in a currency widely
G 1 <
used in international trade and stated in
% 1 -
the bidding documents;
G
% 1

f) general and special conditions of
[/ # G #G contract shall be of a kind generally used
ST - in international trade.

4) Without prejudice to the threshold to be
4/ E,s E
<b/ 22&
C( E- established in the directive to be issued by
M2O/ 4Z E4O M Xd ! the Minister and provided that conditions for
|/ M2 iK9= h_ E using other methods of procurement than
/ nI
9= Ec e 45 open bidding are satisfied, public bodies may
/K7 X /@@ Ud E47- conduct procurement through international
(= c=Su SY SY] competitive bidding by means of restricted
u? / J5K 2<4&
[Z tendering, request for proposals, request for
2O~
Q 705v
<(P NA@ quotation or direct procurement where it is
A0`v uT>U uSkU ascertained that it is impossible to carry out
< uKU k <` SU effective procurement with out the
LK<:: participation of foreign companies.
gA 48)(8 L UT Uz q_R % 4 q
U^ e^ CHAPTER ELEVEN
M
SPECIAL PROCUREMENT
%. }
} 60. Large Value Procurement
1/ 1) There shall be established a central body, which

Z shall be in charge of the execution of large value
i procurements having national significance
y Z S 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
{ i to be issued by the Council of Ministers.
%
2) The Minister shall identify and update the
2/ { types of procurements to be executed on
account of their national significance by the
/1/ 1 - central body which shall be established
Z pursuant to sub article (1) of this Article.
1 G
%1 Tk eUU U
%1.
61. Procedure of Framework Contract
1/ SY SY] u? LL< }Sdd
L U SY 1) Framework contracts may be used to fulfill
SY] u? u}c >? <e similar procurement requirements of various
u}T> KT>[< L public bodies or recurrent procurement
uTk eUU SU LM requirements of a public body.
2/ uL uJ< S u? u}c 2) The following procedure of framework

>? <e KT>N<] }Sdd A0- contract shall be followed to meet similar
1T= Tk eUU uT>}K< G<@ procurement requirements of public bodies
TM- within a given time frame:
G/ ?c=< SY SY] u? a) the Agency shall undertake a survey of the

T>^< }Sdd L uT- similar requirements of public bodies, issue a
E A !"T= `` - list of goods and services constituting such
M u>?<U `\ w^M requirements and update the list regularly;
K/ i u=I b) public bodies shall prepare a forecast of their

k <e k /2//G/ u}SK- requirements of goods and services falling
}< `` <e K}"}~ E under the list mentioned in sub-article (2) (a)
A !"T= T>^< L u of this Article and communicate the same to
}< < #=< YM the body authorized to conduct large
K}c< "M d<nK< procurements;
c) the body to be established in accordance

N/ uAM %/1/ 2W5
T>ssS< "M u=I u}SK- with Article 60(1) of this Proclamation
}< # T>>e\ uT>< SS] shall conclude and administer framework
L uT>K `` Sc[ Tk contracts in the manner prescribed herein
eUU -TM e}^M and the directive to be issued by the
Ministry;
gA 48)(9 L UT Uz q_R % 4 q
S/ SY SY] u? }[S< d) public bodies shall on the basis of the

Tk eUU SW[ uT[ framework contract signed by the central
n? body of procurement conclude the
} uTe}LK < procurement by making order with the
7K< suppliers of goods and services that they
require;
W/ i e) the order that public bodies place with the

suppliers for goods and services of their
eUU pû=<
requirements under the frame work contract
T>e}LM Tk shall confirm to the terms of the framework
eUU~ }Su contract regarding price, terms of payment
# K?KA U G<@ ` and other matters related to the execution of
u}S G<@ JM procurement.
3/ u L AQ AM "7 3) Except in cases provided for in Article 37

4 ` // 2N/ iK paragraph (k) of this Proclamation, public
e X M Tk eUUH bodies shall not be allowed to vary unit
L U Sc[ uJ< K?KA prices and such other fundamental terms of
eUU~ <M G<@ L K< the framework contract when placing order
T[ kU JU uTk for goods and services. However, the public
eUU~ M}"}~ # uTk body and the supplier may agree on terms
eUU~ L Sc[ K< TeK< that have not been dealt with in the
< SY SY] u?~ # framework contract or that do not materially
Tk eUU~ pû= uT>`< affect the frame work contract.
eUU cK<::
4) The framework contract shall be awarded

4/ Tk eUU T>S< uM
through open bidding procedure and may
[ J' EN e S- remain valid for three years.
@5 K=q (=C ::
5) In procuring goods and services under a
5/ SY SY] u? u}T> framework contract to fulfill their recurrent
KT>[< LA uTk requirements, public bodies shall have to
eUU K=U T>K< uT>>e\ adhere to the criterion of fixing prices of
uT> SS] }SK}< n
goods and services to be determined in the
U MKA T>eu M
Se` SW[ uT[ JM:: directive to be issued by the Minister.
U^ e^ CHAPTER TWELVE

2! w[ e}` PUBLIC PROPERTY ADMINISTRATION
62. General
%2. nL
E>es E
<b/ 22&
235 The head of each public body shall ensure that
E
i property at the disposal of the public body is
% A!Iy 2
A properly handled, used and where necessary,
E 2OMP AVCR Xd hP disposed off in accordance with the directive to be
7<@ !I 2N<] 75 issued by the Minister.
A YY
%3. w[ eKS 63. Acquisition
1/ G % i- 1) All acquisitions of public property shall be for

1 % the sole purpose of facilitating the delivery
i and maintenance of approved programs as
G G % efficiently and effectively as possible.

gA 49) L UT Uz q_R % 4 q
2/ Ih/ G - 2) The Agency shall account for, administer and

i - where necessary, dispose off property of the
% Federal Government which are not
%1 administered by any other public body.

%4.
%4. nkU 64. Use and Maintenance
1/ i 1) Heads of public bodies shall ensure that all

G % - public property is used as productively as
i 1 - possible in carrying out of the responsibilities
of the public bodies.

2/ i
{ - 2) Heads of public bodies shall establish a
%< G proper maintenance system for all public
1 property to ensure that it will operate as
economically and effectively as possible in
G G %i
accordance with the directive to be issued by

the Minister.
%5. Se w[ e}`
65. Management of Public Property
1/ i 1) The heads of public bodies shall adopt a life-
% time approach to the management of public
property.
2/ i 2) Heads of public bodies shall ensure that

% - items of public property are recorded as to
1 % date, description, quantity and cost from
% acquisition to the end of their life-time.
1 % G
y

3/ i 3) Heads of public bodies shall ensure that the

i G % custodial responsibility for each fixed asset
1 %- acquired is assigned primarily to persons
1 using such fixed assets and that names of the
G % custodians, and the locations of the fixed
% G 1 assets under their custody are recorded in the
# % register of fixed assets.
y
4/ i 4) Heads of public bodies, shall ensure that

supplies, not acquired for immediate
# i consumption, shall form part of supply
% # inventories and that custodial responsibility
% G - be assigned for such inventories.
#

5) All inventories of public property shall be
5/ G % physically verified against records at least
annually.
gA 49)1 L UT Uz q_R % 4 q
6/ % 6) Where the actual cost of public property is

{ not determinable, its cost shall be estimated
in accordance with the directive to be issued
G by the Minister.
7/ E,s E
<b/ AA 22&
7) Depreciation shall be calculated on fixed
235 EVpP Xd u2! oE assets in accordance with the directive to be
Z5 C( E 0. (3C YY issued by the Minister.
%6.. Sup Svw

66. Protection and Preservation
G i
G t %
The heads and all employees of public bodies are
G % 1 responsible for the protection and preservation of
public property.
%7. Te
%7.
67. Disposal
1/ AA AVWp+ E,s E
<-
b/ 22&
T>c Xd 1) Heads of public bodies shall ensure that fixed
assets which are not useful to the
C( 'C A !"
organization are disposed off in the manner
7(3 Z5T= 2<f/ 75- to be prescribed in the directive to be issued
A YY by the Minister.
2/ % G 2) The description and amount received from all
% %
public property disposed off shall be included
%
in the public accounts.
#
3/ uT>>e\ uT> SS] T>- 3) Without prejudice to the provisions of the

c< }uk J' 2! directive to be issued by the Minister,
concerning the matter, proceeds from the
Z5 7<@ x v 7ENC\
disposal of public property shall be deposited
!P6 G v 245! A YY
into the account of the central treasury.
%8. SW[
68. Deletion
1/ % -
1) Where public property is considered to be of
i no use in the public body or elsewhere, and
i - has no- scrap value, it shall be deleted in
G accordance with the directive to be issued by
{ the Minister.

2/ % 2) Deletion of public property shall be recorded

G- when losses take place from inventory
shortages, destruction, theft or any other
% % reason.

3) The description and book value of all public
3/ G % property deleted shall be included in the
G % % public accounts in accordance with the
{ - directives to be issued by the Minister.
%
#
%9. Te}LK
%9. 69. Transfer
{ The Minister shall determine by directive the

i % manner in which property which is not useful to
% the Federal Government may be transferred gratis
to regional governments, city administrations or
1 G any other body carrying on activities
ST complementing the responsibility of the
G government.
U^ e^ e
CHAPTER THIRTEEN
uSY G %
ESTABLISHMENT OF THE BOARD REVIEWING
L T>k`w u?~
u?~ T>^ COMPLAINTS ON PUBLIC PROCUREMENT AND
x` eKTssU PROPERTY ADMINISTRATION
&. eKx` SssU
70. Establishment of the Board
1/ uSe U E Z5
1) A body (hereinafter referred to as the
A<@ L T>kù< u?~
` <d@ T>c u?~ ] x` "Board") is hereby established which reviews
(=I u%EL #x`$ #}vK T>^) and decides on complaints lodged in regard
u=I }slTEM:: to public procurement and property disposal
proceedings.
2/ x` }]~ KT>>e\ JM
2) The Board shall be accountable to the
Minister.
&1. x` vL E ` 2
&1.
71. Board Members and Terms of Service
1/ x` vL TQu[cw vw
"L< SY SY] u? EcP 1) The Board shall be drawn from persons
N2! 7 @T= <- representing the private business sector, the
b JK< relevant public bodies and public enterprises.
2/ ?c=< u?~ ] x` N 2) The Agency shall serve as the secretariat of

uSJ KLM the Board.
3/ T>>e\ x` vL cTM:: Kx` 3) The Minister shall appoint the members of the
AIC ENV/ A 2O E Board. He shall determine the amount of
allowance to be paid to the members of the
AVWpP (< YY
Board and the mode of payment.
4/ x` vL Y^ S Ze S
JM:: JU }c< NL 4) The term of service of members of the Board
A!Iy
<b vM u7/P shall be three years. However, any member
of the Board failing to properly discharge his
RS Y^ S< Skp u uK?L
vM K=}" LM:: duty maybe replaced at any time before his
term of service expires.
&2.. x` YM }v`
&2.
72. Powers and Duties of the Board
1/ T>>e\ x` e^< T>[}K< directive setting for the procedure the Board
nL G<@ uuk SM< has to follow in the exercise of its powers and
e^ L <LM- duties; such directive shall adhere to the
following general rules:
G/ x` }] U
pû= T>kù< u?~9 a) the Board shall review and decide on
SÙa <d@ cM complaints from candidates or suppliers;
K/ x` Y^< KT #=[< b) the Board may in the exercise of its

A!IZ
Cf/ c #=kù< function require the production of
#=GSK< AeC relevant documents and the testimony of
c^} U NL kù< officials and employees of the concerned
#=e[ K= LM bodies;
c) the Board may also seek professional
N/ x` u?~ uT^ H> }u= assistance from governmental or non-
J c=< Se U governmental entities where it finds such
Se "MJ< "L S< # assistance to be useful in reviewing and
Sp # T LM deciding on a complaint submitted to it.
2/// 1 zV G A !"

> N#h/
YY 2) The Agency shall provide the Board with
office facility and technical assistance.
3/ AA AVWp+ E,s E

<-
b/ 22&
E Xd x` 3) Upon deliberation on a complaint submitted
k[uK u?~ SP NEN_ to it, the Board may give one of the following
v / Z" E
P/ /i decisions, which it deems to be appropriate,
U3 (=C Y- with the details to be prescribed in the
directive to be issued by the Minister:
}/ AGHK M5 !B H> a) that the procurement proceeding in
=e}"M U Eco5 respect of which a complaint was lodged
7 A be rectified or terminated;
b) to dismiss the case where in its judgment
K/ M5 / AGHK v Xd e x the complaint is unfounded.
/@0 7@5!
4) The members of the Board shall discharge

4/ x` vC !I`f/ C Y their duty in a perfectly ethical manner. They
Uv` T KIf/ hX have the obligation to report any potential or
`f/ U VO5 <(P actual conflict of interest they may come
UVO E= 0P ! across in the exercise of their functions and
7<0 E `f/ Nj4H to exclude themselves from any proceeding
7! [C AIf/YY involving such conflict.
CHAPTER FOURTEEN
U^ e^ A`
COMPLAINTS THAT MAY BE LODGED
uSY U E Z5 WITH REGARD TO PROCEEDINGS OF
H> %
% i PUBLIC PROCUREMENT AND PROPERTY
DISPOSAL
73. General
&3. pLL
&3.
1) Without prejudice to the provisions of this Chapter,
1/ 1 a candidate shall be entitled to submit a complaint
Z % to the head of the public body or to the Board
i against an act or omission of the public body in
G1 G regard to a public procurement or property
G disposal proceeding where he believes that such
% an act or omission violates this Proclamation or
the directives.
i
y i %
2/ 2) No complaint may be lodged in accordance

/1/ 1 with sub- article (1) of this Article in respect
i % - of the following matters:
G/ 1 a) the selection of procurement method

G Z pursuant to this Proclamation;
K/ "
9% b) the rejection of bids, proposals or
quotations pursuant to Article 30 of this
Proclamation;
[/ 2! 2F&
GH Z5H
7<@ 25O/ 7<6 | c) the selection of method of property
disposal;
2/ 2! Z5 A
A E AOMP
C( d) the handling and usage of public
property.
3/ i G 3) Complaints against an act or omission of a

1 Z public body pertaining to a proceeding
leading to an award may not be brought
i G G before the head of that public body or the
i - Board after the contract has been signed with
i y the successful bidder.

4) The provision of sub- article (3) of this Article
4/ /3/ 1 shall apply where the following conditions
1 ST are satisfied:
1-
a) where the contract has been signed
G/ { without a complaint being filed with the
% public body within the time limit
i i prescribed in the directive;
1
b) where the public body responds to the
K/ i y complaint lodged and a contract is
i G { signed because of the expiration of the
G time limit for the signing of contract
after the award without the candidate
% G pursuing its complaint further.
1
5) The procedure to be followed in resolving
5/ 2! !B Z5 7<@ C(
complaints brought in regard to public
EMZ AGHK E AA AVWpP procurement and property disposal shall be
E,es E
<b/ 22&
determined in accordance with the directive
(<3 YY to be issued by the Minister.
&4. KSY SY] u? uL L

&4. 74. Review of Complaints by the Head of the Public
eKT>kù< u?~
u?~ Body
1/ i G1
G 1) A complaint against an act or omission by
% i the public body shall in the first instance,
% i be submitted to the head of the public
G body.
2/ i % 2) A candidate shall have to submit the

i 1 complaint within five working days
T from the date he knew or should have
1 u/5 known the circumstances giving rise to the
G complaint.
3/ i S 3) Unless the complaint is resolved by mutual

1 agreement, the head of the public body shall
i Z suspend the procurement or property disposal
% G proceedings and shall, within 10 days after
i submission of the complaint, issue a written
G T decision, stating the reasons, and, if the
i 1 complaint is upheld, indicating the corrective
1 measures to be taken.
T
4/ i 4) If the head of the public body does not

/3/ 1 issue a decision within the time stated in
T sub-article (3) of this Article, or if the
i candidate is not satisfied with the decision
T 1 of the head of the public body the
i T i candidate is entitled to submit a complaint
1 p to the Board within five working days from
T 1 T the date on which the decision has been or
5 should have been communicated to the
y i % candidate by the public body.
&5. Kx`< eKT>k`w u?~

&5. u?~ 75. Reviews by the Board
1/ y i % % 1) Upon receipt of a complaint, the Board shall

i i promptly give notice of the complaint to the
public body concerned. Such action
i automatically suspends further action by the
i y T public body until the Board has settled the
G # matter.

2/ y i 2) The Board, unless it dismisses the complaint,

:- may:
G/ i a) prohibit the public body from acting or

G G deciding unlawfully;
T
K/ G b) order the public body to proceed in a

T manner conforming to this Proclamation
i other than a decision to award or
G conclude a contract;
N/ i c) annul in whole or in part, an unlawful act

G1 T or decision by the public body.

T
3/ y i T 3) The Board shall, before taking any decision

i regarding a complaint, notify relevant bodies
1 of the complaint and shall take into account
G % information and arguments received from
such bodies and from the public body.
4/ y i 4) The Board shall issue its decision within 15

05 G T working days of receiving the complaint,
stating the reasons for its decision and
G
remedies granted, if any.

T
76. Review by the Agency
&6. #h/ EMZ AGHK
&6.
1) Where a public body believes that an
1// 2!Y !B AVWpP E Z5 unlawful act or an act prejudicial to its
A<@ j4 2! 2F&
G legitimate interest has been committed by
NE; <&9= <(P NA0`v9= candidates, suppliers or by buyers of
<(P NE<@ Z5 B9= z < disposed property, it shall without prejudice
X <(P z\ X 0 ED to the measures it is entitled to take against
@R Vp2Z Z" h
P J5K such persons in accordance with the bidding
3 <(P / PPH 235 document or the contract, notify the matter in
E<f/ EP69= E4O 8 Xd writing to the Agency.
#h/
MI YY
2) Upon receipt of the complaint the Agency
2/ #h/ SY SY] u? shall send a written notice of the complaint
AGHK hMZ AGHK M5 2X] and the content of such complaint to the
E AGHK/ [Z E
candidate, the supplier or the buyer of
7K<~
AGHK M5 E;
disposed property against whom the
<& <(P A0`v <(P E<@
complaint has been lodged.
2! Z5 ( e YY
3) Where the Agency finds it appropriate to the
3/ #h/ AGHK/ 222 E
resolution of the complaint it may require
/i 2O v Xd h
x/
persons concerned with the matter to appear
E2NKf/ AeC OT 7
in person and give evidence or seek
<(P 256 2O0 E 7!x
EcP N7/P Ae +
@
professional assistance from any appropriate
2O0 E 7!x (=C YY body.
4/ #h/ M5 AGHK v/ 4) The Agency shall review and give decision
222 AGHK/ M5 05 on the complaint within 15 working days of
` M RS / /i (3b YY receipt of such complaint.
5/// AM U AM /4/ 235

5) The decision to be rendered by the Agency in
#h/ E3O/ /i NEN_
accordance with sub-article (4) of this Article
A UX (=C Y-
may be one of the following:
9/ Xd x/ E; <& a) suspend for a definite or indefinite
<(P A0`v <(P E<@ Z5
period the candidate, supplier or buyer of
B 7/P 2! !B E
disposed property which it finds to be at
Z5 A<@ j4 <3 <(P
fault from participation in any public
C <3 RS E( 7@
procurement or property disposal;
K/ 7OM~
2O
b) give a written warning;
N/ M5 / AGHK /@0 7@5!
c) dismiss the complaint.
6/ #h/ N2! 2F&

GT= 6) The Minister shall establish by a directive the
EMy AGHK9= E25P- procedure the Agency follows in reviewing
E /i E3 A3` and deciding complaints submitted to it in
E
( 22&
E,s p@g accordance with this Article.
` C( (/C YY
CHAPTER FIFTEEN
U^ e^ AP MISCELLANEOUS PROVISIONS
M M @
@
&7.. p
&7. 77. Offences and Punishment
1/ G 1) Every person appointed to or employed by a

i public body in carrying out the provisions of
- this Proclamation who:
G/ - a) receives any payment for the

G performance of his official duty, except
G as provided by law;
K/ Z G 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
ST disposal proceeding;

c) contravenes or intentionally permits any
N/ contravention of this Proclamation;
%
d) willfully makes or signs any false entry
S/ #1 G 9- in any document or willfully makes or
1 signs false certificates;
9 is liable on conviction to a fine not less than
w` !5 / %/ Birr 25,000 and not more than 35,000 and to
G %" 5 / a rigorous imprisonment for a term of not
%/ % G 0 less than 10 years and not more than 15
G 05
years.

2) A procurement and property administration
2/
officer employed in carrying out the
G Z G % provisions of this Proclamation, except such
- information required by this Proclamation to
1 be official, who:
-
a) discloses to any person or that persons

G/ 1 representative, any matter in respect of
another person, that, may, in the exercise of
G G the procurement officers powers or the
performance of the procurement officers
1
duties come to the procurement officers
knowledge;
K/ b) permits any other person to have access

1 to records in the possession or custody of
the public body, except in the exercise of
i - the procurement officers powers or the
G performance of the procurement officers
i duties under this Proclamation or by
1 - order of a court or any competent body;
1 commits an offence and is liable on
i %
conviction to a fine of not less than Birr
0 % G 2 // 10,000 and to imprisonment for a term of not
5 // less than 2 years and not more than 5 years.

3/ 3) Every person appointed to or employed by a

public body in carrying out the provisions of
:- this Proclamation who:
G/ 1 a) directly or indirectly asks for or receives

% 1 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

K/ Z G % b) enters into or acquiesces in an agreement

to do or to abstain from doing, permit,
conceal, or connive at any act or thing
1 whereby the procurement or property
# disposal is or may be defrauded or which
% is contrary to the provisions of this
1 1 Z G 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
1
i % less than ten (10) years and not more than
$ % G 0 twenty(20) years.
!

4/ Z G 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:
G/ T -
1 a) to influence the decision or action of that
% person on any question or matter that is
T - pending, or may be brought before him
in his official capacity; or
K/ Z G % 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
ST or allow or permit any opportunity for
- the commission of any such fraud;
% y -
# is guilty of an offence and liable on

conviction to a fine of not less than
% $
Birr50,000 and to rigorous imprisonment
1 % G 0
G !
for a term of not less than ten(10) years
and not more than twenty (20) years,
5/ 1 5) Any candidate who, with the intention of deriving

% unlawful advantage, presents falsified
documentary evidence or conceals any evidence
1
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
%! 1 % G 5 years and not more than 10 years.
G 0

&8.. w SS] T< YM

&8. 78. Power to issue Regulation and Directives
1/ I KTeU T>>ea U` 1) The Council of Ministers may, where

u? #eL>~ w K= necessary, issue regulation for the
LM:: implementation of this Proclamation
2/ { % 2) The Minister may issue directives enabling
G the realization of the objectives and
- implementing the provisions of this
Proclamation.
3/ ?c=>e\ 3) The Agency shall issue procurement and

T>eM Z w[
T<M Su [ c Z
bid documents, and forms that are necessary
U w[ e}` for the implementation of public procurement
T>S\ p M and property administration.
&9.. }h\
&9. }h\ }T> TJ< QA 79. Repealed and Non-Applicable Laws
1/ =} ^L =V^c= ]w- 1) Determining the Procedures of Public

K= SY Y` KSc Procurement and Establishing the Supervisory
}q] ?c=< KTssU - Agency Proclamation No 430/2005 is hereby
< l` 4)"/09)(7 }ia u=I repealed and replaced by this Proclamation.
}}M::
2) No law, regulation, directive or practices
2/ I T>n[ T [<U::
'. G 80. Effective Date
1 This Proclamation shall enter into force up on the

G G date of publication in the Federal Negarit Gazeta.
4 21 . Done at Addis Ababa, this 9th t day of September, 2009
GR wLdgRgS
wLdgRgS GIRMA WOLDEGIORGIS
PRESIDENT OF THE FEDERAL

yxTe E KsE
DEMOCRATIC REPUBLIC OF ETHIOPIA
pBlK PzNT

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yxTe E KsE pBlK

bxTe E KsE pBlK 15th Year No. 60

xJ q_R 6)#9/21 .M Proclamation No. 649/2009

= ^ SY w[ The Ethiopian Federal Government Procurement and

= ^ SY SY WHEREAS, to achieve better transparency, efficiency,

} Gw T>eu SY w WHEREAS, to ensure that public property in which a

NOW, THEREFORE, in accordance with Article

8/ #SY $ TK uSY SY] 8/ Public Procurement mean procurement by a

08/ #Tk eUU

09/ #Tk eUU p^u=$

!1/ #Se w[$

9/ v a U M a) undertakes to perform or undertake any

/ SY }v` J< Y^ b) assumes substantial financial, technical and

3. }T> c 3. Scope of Application

1/ I uT<U ^M 1/ This Proclamation shall apply to all Federal

4/ accountability for decisions made and

5/ 2! Z5 ^ 2

1/ I ^M SY 1/ To the extent that this Proclamation conflicts

I  u=I SW[ uT>> This Proclamation and the procurement and

8. SY SY] u? uL L L 8. Responsibilities of Heads of Public Bodies

G/ u}u=< c< M } a) cause to be established an adequately staffed

[/  eL>~ e` T> f) where necessary, enter into a contract with third

9. Y^ M }v`  L 9. Duties and Responsibilities of Procurement

N/ u=I k !3 u}< c) maintain complete record for each

10. Duties and Responsibilities of Procurement

/ u SS]< L }kS< a) ensure that public procurement is executed in

/ u SS]< L }kS< b) review and endorse procurements within the

01. }m 11. Accountability

02. ?c=< SssU

1/ SY  w[ e}` 1/ It is hereby reestablished the Public Procurement

2/ ?c=< }]~ KT>>e\ JM:: 2/ The Agency shall be accountable to the

04. ?c=< LT 14. Objectives of the Agency

?c=< LT T>}K< <:- The objectives of the Agency are:

1/ ' u<` L }SW[}' 1/ ensure the application of fair, competitive,

3/ u^M SY <e K< 3/ build the capacity of procurement and property

0 5. ?c=< }va 15. Functions of the Agency

?c=< =I u }[\ }va The Functions of the Agency are to:

2/ u^M SY <e K< 2) monitor and report to the Minister the

3/ vw "L< "L ` uS}vu` 3/ in collaboration with competent authorities

5/ }k Su ' 5/ consider and decide on request from public

6/ uSY KSd} LA L 6/ introduce an efficient system of listing under

12/ establish and maintain institutional linkages

03/ eKSY U  w[ 13/ undertake public procurement execution and

06/     G xf[M 16/ provide office facilities and technical support

08/  i xgLG 18/ set a standard for major items of public

06. ?c=< YM 16. Powers of the Agency

2/ Uea S^' Uea 2/ summon witnesses, call for the production of

3/ u ` TU uT>k`u< 3/ give warning to or suspend for a definite or

5// um U K SJ< c=[ u=I 5/ upon the request of public bodies,

07/ ?c=< ` 17. Organization of the Agency

?c=<:- The Agency shall have:

1/ uSY T>jU _- 1/ a Director General and Deputy Director General to

1/ < _}` ?c=< Y^

2/ Without prejudice to the generalities of the

G/ u=I k 05  06 } (a) exercise the powers and functions of the

K/ u^M c=y=M c`y=e Q SW b) employ, administer and dismiss personnel of

N/ ?c=< Y^ a^U c) prepare the work program and budget of

S/ ?c=< Y^ < H>- d) prepare and submit to the Minister

W/ Ze} ` uT>[< e) represent the Agency in all its relations

3/ The Director General may delegate part of

19. Powers and Duties of the Deputy Director General

1) Subject to directions given from the Director

2/ _}\ uT`u ? K 2) The Deputy Director General shall act on

5/ 2! Z5 ^ 2

I u=I SW[ uT>> This Proclamation and the procurement and

[/ eL>~ e` T> f) where necessary, enter into a contract with third

9. Y^ M }v` L 9. Duties and Responsibilities of Procurement

1/ SY w[ e}` 1/ It is hereby reestablished the Public Procurement

03/ eKSY U w[ 13/ undertake public procurement execution and

06/ G xf[M 16/ provide office facilities and technical support

08/ i xgLG 18/ set a standard for major items of public

G/ u=I k 05 06 } (a) exercise the powers and functions of the

K/ b) the invitation to bid;

S/ d) the evaluation criteria stipulated and

G/ a) information if its disclosure would be

2/ ue} np }sT 2/ In addition to the preference provided for in

2/ llM xqF G 7VpE

K/ b) that they have the legal capacity to

N/ c) that they are not insolvent, in receivership,

2/ > SK< 2/ The technical specifications shall clearly

K/ b) be based on national standards, where

4/ i 4/ There shall be no requirement or reference in

2/ i 2) Public bodies shall have to give notice to

T>>e\ qu= M To achieve economy, transparency and

"2 2! E Z5 A4 Y-

1/ AA AVWp7f/ E,s E

W/ # e) to report to the law enforcement agencies

K/ Z b) with an intention to mislead a procurement

N/ 456 J5K EVpP d) Restricted Tendering;

G/ i G a) the name and address of the public

G/ 2>5? 1@ 7 705Z a) instructions for the preparation and

W/ # G ST e) the general and specific conditions of the

[/ %1 # % f) specification of requirements, including time

c/ %# g) evidence to be provided by the bidder to

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

k/ G - (i) the criteria and the points given to each

1/[ c Sg K[< 1) Bid documents shall be made available to

2/ AM U AM /1/ p/ 2) Notwithstanding the provision of sub-article

2/ }^ eU u 2/ The name of the bidder and the total amount

#3. S[ c eKSS`S` eKS

K/ b) the bidder does not accept a correction

N/ 1 c) the bid is not responsive.