Understanding Ethiopian Procurement Law and Regulations
A guide to Ethiopia's procurement regulations and how to ensure compliance
Navigating Ethiopia's procurement landscape requires a solid understanding of the legal framework governing public purchases. This guide breaks down the key regulations you need to know.
The Legal Framework
Ethiopia's public procurement is primarily governed by the Federal Government Procurement and Property Administration Proclamation No. 649/2009 and its subsequent amendments. The Federal Public Procurement and Property Administration Agency (FPPPAA) oversees implementation.
Types of Procurement Methods
1. Open Bidding
The most common method for high-value contracts. All eligible bidders can participate, ensuring maximum competition and transparency.
When used:
- Contracts above threshold values
- Standard goods and services
- Construction projects
2. Restricted Bidding
Used when only a limited number of suppliers can meet the requirements.
When used:
- Specialized equipment
- Technical services requiring specific expertise
- Time-sensitive procurements
3. Request for Quotations
Simplified procedure for lower-value purchases.
When used:
- Contracts below threshold values
- Readily available goods
- Standard services
4. Direct Procurement
Single-source procurement allowed only under specific circumstances.
When used:
- Emergency situations
- Proprietary items
- Continuity of existing contracts
Key Compliance Requirements
Documentation
All bidders must provide:
- Business registration certificate
- Tax clearance certificate
- Financial statements
- Technical qualifications
- Bid security (where required)
Timelines
- Minimum 30 days for open international bidding
- Minimum 21 days for national competitive bidding
- Shorter periods for urgent procurements (with justification)
Evaluation Criteria
Bids are typically evaluated based on:
- Technical compliance
- Financial capability
- Past performance
- Price competitiveness
Regional Variations
While federal regulations set the standard, regional states may have additional requirements. Always check local procurement guidelines when bidding on regional tenders.
Staying Compliant with Chereta
Chereta helps you stay informed about procurement regulations and deadlines. Our platform provides detailed tender information including submission requirements and evaluation criteria.