160000MT White Sugar Cane Tender On Edition 2

SUGAR Corporation Bid Document
TENDER NO. FP 03-1 SC 2016

FOR THE SUPPLY OF 160,000 MT
WHITE CANE SUGAR
June 2016
ADDIS ABABA
Bidding Procedures Prepared by Marketing
Page

INVITATION TO BID FOR PURCHASE OF WHITE CANE SUGAR
TENDER NO. FP 03- 1 SC 2016
1. Sugar Corporation (SC) invites sealed bids from interested eligible, qualified, &
international bidders for the supply and Delivery of 160,000 MT White Cane Sugar
ICUMSA 150, for August and September 2016 delivery.
2. Bidders shall submit their offers, price in two options:- CFR Djibouti port and FOB
stowed, based on terms of payment in three options:- by an irrevocable Letter of Credit
in USD at site, Deferred Letter of Credit payable after 12 and Deferred Letter of Credit
payable after 18 months.
3. A complete set of bidding documents in English Language can be purchased by
interested bidders at the address below from the first date of this announcement,
during office hours, upon payment of a non refundable fee of Birr 500.00 in cash.
SUGAR CORPORATION
Mexico Square, Philips Bld. 4th Floor
Tel: +251115524586
Fax: +251 11 5513488
P.O.B. 20034- 1000
ADDIS ABABA, ETHIOPIA
4. Sealed bids marked as per instructions given to bidders in the tender document and
addressed to the address above must be received by the BUYER at or before 10:00AM
local time on 9 July 2016. The document will be received through bid box or hand
delivered. No liability will be accepted by the buyer for loss or late delivery.
5. The bids shall be opened in the presence of the bidders/legal representatives who
choose to attend at the conference hall of Marketing Zerf, Mexico Square, Philips
Building, 4th Floor, Room No. 412 at 10:30AM local time on 9 July, 2016.
6. Bids must be accompanied by a bid security BB amounting USD 30,000.00 or
equivalent in Ethiopian Birr at the prevailing exchange rate in the form of CPO or
Bank Guarantee from Commercial Bank of Ethiopia, which will be payable on first
demand by SC.
7. SC reserves all rights to accept or reject, decrease or increase, any or all bids or cancel
the tender without giving reasons thereof.
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Table of Contents
A. General.......
3
B. Subject of the invitation for the bid..........4
C. Technical Specification........4
a. Standard.......4
b. Packing......5
c. Additional Requirement.....5
D. Preparation of Bids....5
E. Language of Bids ......
5
F. Bid Form...
5
G. Bid Price...........6
H. Bid Bond............................ 6
I. Manufacturers Certificate ..
..7
J. Bid Presentation...
7
K. Deadline for Submission of Bids......7
L. Late Bids .....
7
M. Bid Opening and Evaluation...7
N. Clarification of Bids..
.....8
O. Conservation to Single Currency...... 8
P. Rejection Points ...........
8
Q. Evaluation of Technical Proposal......8
R. Evaluation of Financial Proposal......9
S. Award Contract........
10
T. Vary of Quantities..........
10
U. Appendices:
a. Form for Technical Documents.....12
b. Form for Financial Proposal....14
c. Draft Contract...15
d. Freighting Terms for bagged Sugar. 24
e. Performance Security Form......27
f. Performa Invoice........ 28
Page
BID No. FP 03 - 1 SC 2016

For the supply of 160,000 MT White Cane Sugar
INSTRUCTIONS TO BIDDERS
A. GENERAL:
1. International Bidders are invited to participate in this tender either directly or through
their duly represented local agents.
2. Bidders shall separately seal the original and each copy of the financial and technical
offers of the bid duly marking the envelopes as original and copy. The outer envelope shall
contain
2.1. The technical envelope (sealed)
2.2. The financial envelope (sealed)
2.3. The bid security (sealed). It shall be sealed and bear the name of the bidder, the bid
notice number and submitted to the following address before the closing date and time.
Any bid sent through fax and email is not valid
SUGAR CORPORATION
Mexico Square, Philips Bld. 4th Floor
Tel: +251115524586
Fax: +251 11 5513488
P.O.B. 20034- 1000
3. The invitation to Bid is not part of the Bidding Document. In case of discrepancies between
the Invitation to Bid and the Bidding Document, the Bidding Document will take
precedence.
4. Bidders are expected to examine all instructions, forms, terms, and specification in the
bidding document. Failure to furnish a bid containing all required information within the
deadline specified shall lead to the/by the bidding document of a bid not substantially
responsive to the bidding documents in every respect will be at the bidders risk and may
result in the rejection of its bid.
5. Bids must be accompanied with an original form of unconditional Bank Guarantee from a
Commercial Bank of Ethiopia in an amount of USD 30,000.00, or equivalent in Ethiopian
Birr at the prevailing exchange rate in the form of CPO, which will be payable on first
demand by SC
6. Any bid not accompanied by a substantially responsive bid security, it shall be rejected as
non responsive.
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7. Bidders should review a draft contract terms and conditions and suggest amendments if
any, as this shall be the final negotiation points during signing of the contract.
8. Payment shall be by an irrevocable Letter of Credit in USD opened at Commercial Bank of
Ethiopia based on the agreement reached between the Buyer and Seller on terms and
conditions of the contract.
9. The INCOTERM shall be either FOB stowed or CFR Free out Djibouti sea port at Buyers
option.
10. The sugar shall be inspected at the time of shipment by Internationally Recognized
Independent Inspecting Company appointed by the Buyer for sellers account. The
inspection shall cover quantity, quality analysis, packing, marking, tare and net weight,
loading stowage, and other necessary information.
11. The Buyer shall appoint a surveyor at load port to Sellers account and at discharge port
to its account.
12. In case there is a discrepancy between the unit price and the total value, the unit price
shall be taken as a basis for evaluation. Unclear and ambiguous price offers will be
rejected.
13. A successful bidder shall sign a contract within 5 working days after receiving
notification of the award and further issue unconditional performance bond for 10% of the
bid value within 3 days in a form of Bank Guarantee in accordance with the specimen form
attached with this bid document or CPO from Commercial Bank of Ethiopia.
14. The Performance Bond shall be valid for 180 calendar days from the date of signing of
the contract. Nevertheless, the Supplier promptly should extend the validity to cover agreed
extension of the delivery.
15. The Corporation reserves the right to amend the bid document before the deadline for
submission. In such case, the dead line shall be extended and the amendment details shall
be notified.
16. Wax sealed bids should be submitted latest by 10:00AM local time on 9 July 2016 to the
address mentioned above on item 2.
The bids shall be opened in the presence of the bidders/representatives who choose to
attend at the conference hall of Marketing Zerf, Mexico Square, Philips Building, 4th
Floor, Room No. 412 at 10:30AM local time on 9 July 2016.
17. Local agents are required to submit copy of their valid trade license, VAT Registration
Certificate, Tax payer Identification Certificate & letter of representation from the principal
to participate on the bid opening on behalf of the principal bidders.
18. The Corporation will reject if the Bidder recommendation for award has, directly or
through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive
practices in competing for, or in executing, a contract.
19. The loading port should have at least 12 meter Draft that can accommodate 50000 MT
sugar loading capacity.
20. The Corporation reserves all rights to accept or reject, decrease or increase any or all
bids or cancel the tender, which affects the interest of the Corporation, without giving
reasons thereof.
21. Bidders may obtain further information pertinent to the bid through Tel. +251 11 552
4586/ 551 23 69 Fax +251-11-551 34 88 and e-mail: etsugar.marketing@gmail.com
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B. SUBJECT OF THE INVIATION FOR BID
22. Eligible bidders are invited to submit bids for the supply of 160,000 MT of White Cane
Sugar.
23. Bidders shall bid for 160,000 MT; offer for less quantity shall be automatically rejected.
C. TECHNICAL SPECIFICATION
STANDARDS
24. The Seller shall supply White Cane Sugar with the following quality
specifications: -
S. No
1
2
3
4
5
6
Specifications
Parameters
Polarization OZ Minimum
Moisture % by mass
Sulphur dioxide mg/kg
(Maximum)
Insoluble matter, % by mass
(Maximum)
Color in ICUMSA unit
Cane sugar, free flowing medium
grain size
99.7
0.01 0.06
Conductivity ash, % by mass

7
8
20
0.01
150
0.7-1mm
0.04 max
(Maximum)
Reducing sugars, % by mass
(Maximum)
Crop Year
0.04
2014/2015 2015/2016
25. PACKING
25.1. The packing shall be in new sound 50 KG net polyethylene lined polypropylene bags
of brown/white color with Bag marks stating "Name of the Product, Origin,
Production Date, Expiry, Net Weight, and name of producer"
25.2. The minimum tare weight of each bag shall be 160gms.
25.3. The Seller shall supply in each shipment 3% empty bags similar to original bags
supplied free of charge.
26.
ADDITIONAL REQUIREMENTS
26.1. Bags sample from the same source of sugar origin with proper labeling "Name of the
Product, Origin, Production Date, Expiry, Net Weight, and name of producer shall
be presented during the opening of the bid. Sticker is not acceptable.
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26.2. A sample bag supplied by the successful bidder shall stay with Sugar Corporation
until the completion of the procurement process to be used for checking conformity
during delivery.
26.3. Bidders should not submit unsolicited samples.
26.4. In case there is a discrepancy between the sample bag and shipped sugar or failure to
stuff the sugar similar to the sample bag, Sugar Corporation shall have the sole
discretion to directly claim 30 USD per metric ton from the Performance Bond
based on the total number of unsolicited bagged sugar.
26.5. Review a draft contract terms and conditions and suggest amendments, if any, as this
shall be the final negotiation points during signing of the contract.
D. PREPARTATION OF BIDS
27. The completed set of the tender documents shall be in separate Financial and
Technical submission and must be enclosed in a sealed envelope or package clearly
endorsed with title on the indent and identified as being the Financial and Technical
submission; and be addressed as specified on Item 2.
E. LANGUAGE OF BIDS
28. Tenders and all documents and correspondence relating to tenders shall be written in the
English language.
F. BID FORM
29. The bidder shall complete the Bid Form and the appropriate related forms furnished in
the Bidding Documents, indicating for the goods to be supplied, a brief description of the
goods their country of origin, quantity and prices.
G. BID PRICE
30. The price of the goods quoted shall be in three options:- payment at irrevocable L/C at
site, on deferred payment letter of credit for 12months and on deferred payment letter of
credit for 18months after shipment dates, FOB Stowed and CFR Free out Djibouti, freight
and Loading Port Visit expenses for two persons throughout the loading operation should
be quoted separately in monetary value . Failure not to submit Port visit cost in USD
shall lead to rejection of the bid. The cost of loading port visits should be covered by the
seller. The cost of loading port visits is not part of sugar cost. In case, if it is not used by
the buyer, shall be transferred to the buyers account.
31. Where the Ethiopian Shipping Lines calls or agrees at the place of loading, sea freight
should be by the Ethiopian Shipping Lines.
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32. Prices quoted by the bidder shall be fixed during the bidders performance of the
contract and not subject to escalation on any account. A bid submitted with and adjustable
price quotation will be treated as non-responsive and rejected
H.
BID BOND
33. Bids must be accompanied by bid security amounting USD 30,000 or equivalent in
Ethiopian Birr at the prevailing exchange rate in the form of CPO, or Bank Guarantee
from Commercial Bank of Ethiopia. The bid bond shall be payable on first written demand
by SC.
34. The bid bond must be submitted together with the offer or should arrive or hand deliver
to Marketing office, Room no 413 on or before tender closing hour.
35. Bid Bond shall be forfeited if a successful bidder fails to sign a contract and/or furnish a
10% performance bond.
36. The validity date of the Bid Bond shall not be less than 45 days from the date of the
opening of the tender. Offer accompanied with bid bond of less validity date shall be
automatically rejected as non responsive.
37. Any bid not accompanied by a substantially responsive bid bond shall be rejected as non
responsive.
38. The bid bond of unsuccessful bidders shall be returned as promptly as possible upon the
successful bidders signing a contract and submitting PB.
39. The bid bond of the successful bidder shall be returned as promptly as possible once the
successful bidder has signed the contract and furnished the required performance bond.
I.
MANUFACTURERS CERTIFICATE
40. Bidders should provide Manufacturers Certificate and Authorization for confirming
source, specification and quality of the product to be supplied.
J. BID PRESENTATION
41. Bidders shall quote their prices in USD separately for FOB Stowed, Freight, and CFR
Free out Djibouti port and load port visit cost on three options, payment by an irrevocable
Letter of Credit at site, Deferral Payment Letter of Credit for 12months and Deferral
Payment Letter of Credit for 18months after shipment dates. Offers without three price
options and breakdowns FOB Stowed, Freight, and CFR Free out Djibouti port and load
port visit cost shall be rejected as non responsive.
42. Price quoted shall be valid for 6 working days i.e. Monday Monday from the date of the
opening of the tender, price validity for fewer days shall be automatically rejected.
43. Bidders should follow the format for bid presentation attached herewith when submitting
their offers
K. Deadline for Submission of Bids
44. Bids must be received by the Buyer at the address specified on the date specified in the
invitation to bid.
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45. The Buyer may, at its discretion, extend this deadline for the submission of bids by
amending the Bidding Documents, in which case all rights and obligations of the Buyer and
Bidders previously subject to the deadline will thereafter be subject to the deadline as
extended.
L. Late Bids
46. Any bid received by the Buyer after the deadline for submission of bids prescribed by the
Buyer will be Rejected and/or returned to the Bidder.
M. BID OPENING AND EVALUATION
47. Opening of Bids by the Buyer
47.1. The Buyer will open the bids in the presence of bidders/ representatives who choose
to attend at the conference hall. The bidders or their representatives who avail
themselves during this ceremony shall sign and register evidencing their
attendance.
47.2. Upon the final opening of Tenders, the Buyer shall announce the Bidders names, bid
prices, modifications and such other details as the Buyer, at its discretion.
47.3. The Buyer will prepare minutes of the bid opening.
N.
CLARIFICATION OF BIDS
48. To assist in the examination, evaluation and comparison of bids the Buyer may, at its
discretion, ask the Bidder for a clarification of its bid. The request for clarification and no
change in the price or substance of the bid shall be sought, offered or permitted.
O. Conversion to Single Currency
49. To facilitate evaluation and comparison, the Buyer will convert all bid prices expressed
in the amounts in various currencies in which bid price is payable, to the local currency of
the Buyers country at the selling exchange rate established by the National Bank or any
other commercial bank in the Buyers country, for similar transactions, on closing date of
the bid.
P. Rejection Points:
.
a) Bid bond of less than 45 days of validity date shall be automatically rejected as non
responsive.
b) Any bid not accompanied by a substantially responsive bid bond shall be rejected as non
responsive.
c) Any bid received by the Buyer after the deadline for submission of bids will be rejected
d) Price validity dates for less than 6 working days i.e. Monday Monday from the date of the
opening of the tender is rejected.
e) A bid submitted with and adjustable price quotation will be treated as non-responsive
f) Price offer exclusive of LC at sight, Deferral options for 12 months and 18months with
break downs of FOB, Freight, C&F and load port visiting cost in monetary value is
rejected.
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g) Offer without price breakdown and failure not to submit Port visit cost in USD as stipulated
on the financial form annexed in this bid doc is rejected. Offer without price breakdown
and failure not to submit load port visit cost in USD as stipulated on the financial form
annexed in this bid doc is rejected. Cost of loading port visits should be covered by the
seller. Cost of loading port visits is not part of sugar cost. In case, if it is not used by the
buyer shall be transferred to the buyers account.
h) Failure to submit sample bags with tare weight of 160 grams before signing of the contract
is rejected as non responsive.
i) The loading port less than 12 meter Draft that cannot accommodate 50000 Mt. sugar
loading capacity is rejected.
j) Lashin/separation/dunnage/kraft paper etc if any shippers/suppliers account
k) Not to agree to supply 3% empty bags similar to the original bags is rejected
l) Not to agree to load the cargo using Ethiopian Shipping and Logistics Enterprises vessels
whenever needed is rejected.
m) Deviation from the stated technical specification on the following parameters shall cause
rejection.
S. No
1
2
3
4
5
6
7
8
Specifications
Moisture % by mass
Sulphur dioxide mg/kg (Maximum)
Insoluble matter, % by mass (Maximum)
Cane sugar, free flowing medium grain size
Conductivity ash, % by mass (Maximum)
Reducing sugars, % by mass (Maximum)
Crop Year
Parameters
99.7
0.01 0.06
20
0.01
150
0.7-1mm
0.04 max
0.04
2014/2015 2015/2016
n) Containerized shipment shall not be accepted, rejected.

o) Bids for less than 160,000 MT of sugar are rejected.
p) Others specified as rejection points on this body of bid documents are strictly rejection
points.
Q.
EVALUATION OF TECHNICAL PROPOSAL
50. The Corporation shall examine the bid to confirm that all terms and conditions specified
in the bidding document have been accepted by the bidder without any material deviation
or reservation.
51. The following method of evaluation will be adopted:
a) Responsiveness to technical Specification: the offered goods shall be responsive to
specifications and standards defined in the technical specification.
b) The Bidder shall indicate the name, the address and the capacity of his agency or
his official representative in the Buyers Country, related to the offered goods.
c) Bidders must furnish schedule for the shipment and estimated arrival date at
Djibouti.
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d) The supplier shall assure the Buyer of the Genuineness and Quality of bags to have
a tare weight of 160gram.
e) Manufactures certificate shall be furnished and country of origin shall be indicated.
f) The Buyer desires to have delivery of the goods covered under the invitation, at the
time specified in the Delivery Schedule. The estimated time of arrival of the goods
at the port of entry should be calculated for each bid after allowing for reasonable
ocean transportation time. Treating the bid offering the scheduled time of arrival as
the base, a delay beyond the base shall be calculated USD 3,000 per day at the
maximum penalty fee of USD 60,000 which is subjected for deduction from the 10%
of LC value or Performance bond and late delivery beyond 20 days lead to direct
cancellation of contract.
g) All points stated in the rejection points will be taken as technical evaluation points
R..
EVALUATION OF FINANCIAL PROPOSAL
52. Among the total number of bidders, only those who are considered to be technically best
ranked (with a minimum of 70%) are called for the financial opening again evaluated for
their financial offer. The Buyers financial evaluation of a bid will exclude and not take into
account:
In the case of goods manufactured in the Buyers country or goods of foreign origin
already located in the Buyers country, sales and other similar taxes, which will be
payable on the goods if a contract is awarded to the Bidder; and
In the case of goods of foreign origin offered from abroad, customs duties and other
similar import taxes which will be payable on the goods if the Contract is awarded to
the Bidder.
53. The financial offer will be checked by considering the following:
a) Price validity date
b) Terms of payment
c) Bid validity date
d) Price is as per bid form: the lowest evaluated bid either FOB stowed or CFR
Djibouti or whichever is in favor of Sugar Corporation. Bidders shall quote FOB
stowed and Freight cost and CFR price and Loading Port Visit cost in monetary
value separately based on L/C at site, 12 months and 18 months deferred
payments after the shipment date. If any Bidder fails to do so, his/her bid shall be
considered as non-responsive and consequently be REJECTED
54. Arithmetical errors will be rectified on the following basis. If there is a discrepancy
between the unit price and the total price that is obtained by multiplying the unit price and
quantity, the unit price shall prevail and the total price shall be corrected. If there is a
discrepancy between words and figures, the amount in words will prevail.
S. Announcing Bid Evaluation Result
Page 10

55. The Corporation shall notify on notice board or in writing the result of a bid evaluation
to all bidders alike at the same time at its discretion.
56. A letter of contract award to be sent to a successful bidder may contain the following
information:
a. That the corporation has accepted his/her bid.
b. The unit price.
57. A letter of award to be sent by the Corporation to a successful bidder shall not constitute
a contract between him and the Corporation. A contract shall be deemed to have been
concluded between the corporation and the successful bidder only where a contract
containing detailed provisions governing the execution to the procurement in issue is
signed.
T.
AWARD of CONTRACT
58. A successful bidder shall sign a contract within 6 working days after receiving
notification of award and further issue unconditional performance bond in the attached
specimen format from Commercial Bank of Ethiopia and the proforma invoice within 3
days of notification of award.
U.
Buyers Right to Vary Quantities at Time of Award
59. The Buyer reserves the right at the time of award or after the Contract signed, to increase
by up to 25% of the quantity of goods specified in the Bid Document without any increase
in price and/or without any change in other terms and conditions.
Page 11
Appendices
Page 12
TENDER/ BID NO. FP 03-1 SC 2016

WHITE CANE SUGAR
FORM I.
FORMAT FOR TECHNICAL BID DOCUMENT PRESENTATION
1. Principal bidder name:________________________________________
Country___________ Contact Person: ____________________________________
Mobile______________
Tele______________
Fax____________
E-mail__________________
2. Local Agent name:___________________________
Mobile______________
Tele______________
E-mail_________________
Fax____________
3. Total Quantity offered in MT: ___________________________

4. Country of Origin:_____________________________________
5. Name Port of loading: ___________________________________
5. Quality Specification
The Seller shall supply White Cane Sugar with the following quality
specifications: -
S. No
1
2
Specifications
Parameters
Moisture % by mass
Page 13

3
4
5
6

(Maximum)
(Maximum)
grain size

7
8
(Maximum)
(Maximum)
9
Crop Year
6. Packing: _____________________________________________________________
Bag Color: _____________________
Minimum Tare Weight______________________
Bag Marks_________________________________________________
Empty bags supplied free of charge: _____________________________
7. Documents to be supplied:
a. Schedule of shipment and estimated arrival date at Djibouti
b. Manufactures certificate shall be furnished and country of origin shall be
indicated
c. The Bidder shall indicate the name, the address and the capacity of his
agency or his official representative in the Buyers Country, related to
the offered goods
b) The loading port should have at least 12 meter Draft that can accommodate
50000 Mt. sugar loading capacity.
Page 14

WHITE CANE SUGAR
FORM II.
FORMAT FOR FINANCIAL BID DOCUMENT PRESENTATION
Quantity in MT -------------------------------------------------Origin
------------------------------------------------------------Shipment period -------------------------------------------------Port of loading
---------------------------------------------------Scheduled Arrival/Djibouti/ ------------------------------------
L/C at site
FOB STOWED______________________________
FREIGHT__________________________________
CFR DJIBOUTI_________________________
Load Port Visit_______________________________________
Deferred L/C for 12 Months

FOB STOWED______________________________________
FREIGHT__________________________________________
CFR DJIBOUTI_____________________________________
Load Port Visit_______________________________________
Deferred L/C for 18 Months

Page 15

FOB STOWED______________________________________
FREIGHT__________________________________________
CFR DJIBOUTI_____________________________________
Load Port Visit_______________________________________
Price Validity days:-6 working days i.e. Monday Monday
Authorized Person __________________ Bidder Signature ___________________
Date ___________________________
Stamp ________________________
CONTRACT FOR THE PURCHASE

OF WHITE CANE SUGAR
FP 03 - 1 SC 2016
Whereas the SUGAR CORPORATION (hereinafter referred to as the Buyer) is
willing to Purchase White Cane Sugar (hereinafter referred to as Sugar);
and
Whereas ------------------------------ (hereinafter referred to as the Seller) is
willing to sell the same pursuant to the terms and conditions of this
Contract,
Now, therefore, the Buyer and the Seller hereto agree as follows: ARTICLE I
OBJECT
The seller hereby agrees to sell and deliver, and the Buyer agrees to buy,
receive and pay for the sugar upon terms and conditions specified herein
under.
ARTICLE II
QUANTITY
The quantity of sugar sold here under this contract shall be 160,000 MT.
Article III
QUALITY
The Seller shall supply the sugar with the following quality specifications: The Seller shall supply White Cane Sugar with the following quality
specifications: -
S. No
1
2
3
Specifications
Moisture % by mass
(Maximum)
Parameters
99.70
0.01 0.06
20.0
Page 16

4
5
6

(Maximum)
grain size

7
8
0.01
150
0.7-1.0mm
0.04 max
(Maximum)
(Maximum)
0.04
9
Crop Year
2014/2015-2015/2016
ARTICLE IV
ORIGIN
The origin of the sugar sold hereunder shall be ------------------.
ARTICLE V
PACKING
5.1
All sugar sold hereunder shall be packed in new sound polythenelined brown color polypropylene bags of 50 kilos net weight each
suitable for export with minimum tare weight of 160 gms.
5.2
Bag tare weight shall be checked on load port and discharge port
compared with the given samples at presence of Buyers and sellers
surveyors/representatives. Any bags with less than 160 gram tare
weight and deviate from the samples upon delivery entitles to a
penalty of USD 30/MT. No tolerance shall be admitted under the
specified standards.
5.3 The bag marks shall show Origin, Production Date, Expiry, Net
Weight, name of the product, and name of producer Sticker is not
acceptable.
5.4 Bag marks shall be in English Language. Other language markings are
also acceptable
in addition to English.
5.5 Seller shall free of charge provide Buyer with 3% empty bags similar
to original
bags.
ARTICLE VI
SHIPMENT/ARRIVAL
6.1. The Seller shall ship and deliver the total quantity of 160,000 in August
and September 2016.
Page 17

6.2. Penalty of USD 3,000/day for any delay on delivery up to the maximum
of USD
60,000.00 shall be entailed which shall be deducted from
the PB or LC value and late delivery beyond 20 days shall lead to direct cancellation of
contract.
ARTICLE VII
LOADING/DISCHARGING
7.1 Where the Ethiopian Shipping Lines calls or agrees at the place of
loading, sea freight is to be by the Ethiopian Shipping Lines.
7.2 For CFR Free out Djibouti, chartering and discharge shall be as per the
freighting
terms as detailed in Appendix A attached to this contract.
7.3 The Seller shall arrange for the Buyer Load port visit to Sellers account
and provide transportation to the load port until the load is cleared
out.
7.4 For FOB Stowed Option
7.4.1 At each loading port, even if loading commence earlier, laytime
for loading to begin at 1400hours if written/cabled/telexed
notice of readiness is tendered to Agents before noon and at
0800 hours next working day if written / cabled / telexed notice
of readiness is tendered to Agents after noon.
7.4.2 Laydays at the average rate of 3,500MT calculated on gross
weight provided vessel can receive at this rate, per weather
working day of 24 consecutive hours, time from Saturday after
noon to 0800 hours Monday(or local equivalents), and from
1700 hours day preceding a holiday until 0800 hours on next
working day excepted, even if used.
7.4.3 At loading port(s) in the event of congestion Master has the
right to tender notice of readiness at the customary waiting
place in ordinary office hours by cable/telex to Agents, whether
in berth or not, whether in port or not, whether in free partique
or not, whether customs cleared or not.
ARTICLE VIII
INSURANCE
8. Insurance for the Sugar to be covered by Buyer from port of loading to
Addis Ababa warehouses via Djibouti port
9.1
9.2
ARTICLE IX
OBTAINING OF THE EXPORT PERMIT
The Seller shall obtain Bank permit, Customs declaration & other
documents relevant for the exportation of the sugar at its origin.
All expenses in connection with the obtaining of these permits shall
be born by the seller.
Page 18

9.3
10.
The Seller shall be responsible for obtaining any necessary Export

permit at its origin and failure to obtain such permit shall not be
sufficient grounding for force majeure.
ARTICLE X
IMPORT LICENSE
The Buyer shall be responsible for obtaining any necessary Import
License like customs declaration and relevant documents and failure
to obtain such license shall not be sufficient grounding for force
majeure.
ARTICLE XI
PRICE
11.1 For the sugar to be supplied under this contract, the Buyer shall pay
USD--------- FOB, or USD -------------- CFR Free out Djibouti in
accordance to Article 13 for the settlement of LC.
11.2 Said Prices are fixed & firm for the total quantity for the entire
contract period.
ARTICLE XII
WEIGHT, QUANTITY, QUALITY AND PACKING
12.1. All specifications regarding the Weight, Quantity, Quality and
Packing shall be
Ascertained at time of loading or at time of shipment of the Sugar at
load port by an internationally recognized independent inspection
company appointed by the Buyer for Seller's account, and at the
discharge port for Buyers account.
ARTICLE XIII
13. MODE OF PAYMENT
13.1 Buyer shall issue in favor of the Seller an irrevocable letter of Credit
exclusively in USD payable based on the agreed credit terms and
conditions. Settlement shall be effected under the Letter of Credit on
submission of Original required shipping documents as per the LC to
the advising bank and presentation of the following documents and
conditions:-
Page 19

13.1.1
Signed three original Commercial Invoice and three copies
specifying FOB
Cost, Freight Charges and CFR cost, all copies
certified by the Chamber of Commerce.
13.1.2 One Original and One copy of Certificate of Origin issued by
Chamber of
Commerce.
13.1.3 Full set of signed CLEAN ON BOARD Bills of Lading and three
non negotiable copies, Freight Prepaid, made out TO THE
ORDER of Letter of Credit opening bank, notifying SUGAR
CORPORATION
13.1.4 One original Bills of Lading to be sent directly to the opening
bank within 10 days of the Bills of Lading date.
13.1.5 Packing list in three original copies.
13.1.6 Inspection Certificate issued by an Internationally Recognized
Independent Inspection Company covering Quantity, Weight,
Quality Analysis (the full detail of Specifications as per this
contract article III), marking and Packing of the goods and
loading stowage issued in triplicate.
13.1.7 Health Certificate, issued by a competent Health Authority
stating that the sugar supplied is fit for human consumption to
be issued in one Original.
13.1.8 Vessel Cleanliness Certificate issued prior to loading bagged
sugar in one original stating vessel holds found empty, dry,
clean, free from foreign odour, with no sign of live infestation
and suitable to receive and carry bagged sugar.
13.1.9 Radioactivity test Certificate issued by a competent authority
in one original.
13.1.10 Bill of Lading for 3% Empty Bags similar to the original bags,
marked Free of Charge
13.1.11 One original signed Freight Invoice issued by the carrier or its
agent.
13.1.12 A certificate issued by a Captain or vessel owner, or agent or
company of vessel to be presented stating the following:
Name of vessel
Voyage NO.
Bill of Lading number and Date
Port of Loading
Port of Discharge
Number (Quantity) of packages
Gross Weight
Types of goods
Our LC Number
Name of the Carriers Agent
And further stating that the vessel shall not call or anchor
the ports or enter the territorial waters of
the
state
of
Page 20

Eritrea in route to its destination and that the vessel is not
registered under Eritrean Flag nor owned by Eritrean
national.
The classification of societies under which the vessel is
registered and the country of registration.
The Certificate has to be signed and stamped by the issuer
declaring that the information provided above are correct and
complete.
13.1.13 One original beneficiarys confirmation certificate is required
to confirm the following conditions in the L/C.:- Bags are
marked name of the product, Name of the Producer, origin,
Net weight, Expiry, Crop year.
13.2 Local bank charges in connection with the opening of the L/C shall be
born by the Buyer.
13.3 Any foreign bank charges out side Ethiopia shall be borne by the
Seller. (If Seller requests for Confirmed Letter of Credit, all
confirmation charges including commission charge of the opening
bank in connection with the confirmed LC shall be covered by the
Seller.)
13.4 The Letter of credit will be established within 5 working days after
receipt of signed contract, Proforma Invoice and 10% performance
bond from the Seller, however, delay in opening of the Letter of credit
will result in extension of shipment period for a reasonable period.
13.5 The Proforma Invoice issued by the seller shall specifically indicate
the name and address of bank through which the seller wishes to
receive the LC & such bank must also be acceptable to the Buyer's
bank. The Proforma Invoice shall be presented in the attached format.
13.6 Presentation of documents to the advising bank with in 21 days from
BL date.
13.7 Charter Party Bills of Lading and third party documents are
acceptable.
13.8 Incase two or more B/L to be issued per a vessel, Commercial Invoice,
Packing List, Certificate of Origin & Health Certificate has to be splited
inline with each bills of lading quantity.
13.9 Non negotiable copies of commercial invoice, BL, Freight Invoice,
Packing List, and Certificate of origin & Health Certificate are sent
directly to the Buyer within 7 days from signing of the Bills of Lading
and other shipping document will be sent with in 7 working days.
13.10 Seller shall issue Proforma Invoice immediately after receiving the
award in four originals showing cost break down for FOB value,
Freight and C & F Free out Djibouti, Origin of good and marked
"Labeled as per Ethiopian Standard specified on Article V under
Packing.
13.11 Additional Conditions:
13.11.1 The final Commercial Invoice and Original Bills of Lading
should indicate
Breakdown of the actual freight charges paid which must be
supported by the Carriers or its agent signed freight invoices.
Page 21

13.11.2 Negotiation under the LC is restricted to FOB value plus the
actual freight
Amount substantiated by the Carriers or its agent signed
freight invoices. But the Buyer shall not cover any exceeding
freight cost over the Proforma freight amount.
13.11.3 Freight amount on the Bills of Lading and Freight Invoices
should be indicated
in the currency of the credit. If the actual freight amount be
indicated other
than the currency of the LC, the exchange rate of that currency
against the LC
Currency should be indicated.
ARTICLE XIV
PERFORMANCE BOND
14.1 Seller shall issue in favor of the Buyer unconditional performance
bond for 10% of the contract price from commercial bank of Ethiopia
with standard bank guarantee format and content within 3 days of
the signing of this contract in accordance with the specimen attached
herewith. Any Claim by the Buyer shall be deducted from the
performance bond up on presentation of letter request to the bank by
the Buyer.
14.2 The Performance Bond shall be valid for 180 calendar days from the
date of signing of the contract; nevertheless, the seller shall promptly
extend the validity to cover agreed extension of the delivery.
14.3 The Buyer shall return the Performance bond or the balance thereof
to the Seller soon after the total delivery of sugar at Djibouti port and
settlement of any outstanding claim on the supplier.
15.1
15.2
15.3
15.4
ARTICLE XV
TAXATION
Any existing or future levies in the nature of taxes on Sugar imposed
by the country of origin shall be for the account of Seller on FOB
basis.
Any existing or future levies in the nature of taxes on Freight or
Shipping imposed by the country of origin shall be for the account of
vessel owner on FOB basis.
Any existing or future levies in the nature of taxes whether on Sugar,
Freight or Shipping imposed by the country of origin shall be for the
account of Seller on CFR basis.
Any existing or future levies in the nature of taxes whether on Sugar,
Freight or Shipping imposed by the country of destination shall be for
the account of Buyer on CFR basis.
ARTICLE XVI
FORCE MAJEURE
16. The performance of this contract is subject to Force majeure as defined
by the Rules of the Refined Sugar Association as fully as if the same has
Page 22

been expressly inserted herein whether or not either or both of the parties are
members of the association.
ARTICLE XVII
DAMAGE/FRAUD
17.1 The Seller shall be responsible for actual and/or consequential
damages in failing to
perform its obligations according to this
contract.
17.2 The seller shall pay damages for any defect arising from the white
cane sugar which
will be loaded at the loading port whether the bill of
loading specifies the shipment
as contained or said to contain.
ARTICLE XVIII
SETTLEMENT OF DISPUTE
18.1 The parties shall attempt to amicably settle any dispute, controversy
or claim arising out of or relating to this Contract or the breach, or
termination or invalidity thereof.
18.2 In case amicable settlement is not possible, each party shall elect one
arbitrator and the two arbitrators shall elect an umpire to settle the
dispute.
18.3 The language of the arbitration is English. The proceeding shall be
governed by Ethiopian Laws.
18.4
Place of arbitration shall be Ethiopia.
ARTICLE XIX
TITLE
Title of goods shall not pass on until the Seller has received full payment for
100% of the final contract value in accordance with the terms of the
contract. In case of defer payments; title of good shall pass after full
delivery of the white cane sugar at discharge port.
ARTICLE XX
LANGUAGE
The language of the contract and any correspondences thereof shall be
English.
ARTICLE XXI
DOCUMENTS
The Seller shall in good time give copies of documents to the Buyer
ARTICLE XXII
EFFECTIVE DATE
This contract shall become effective as of the date of signing by the duly
appointed representatives of the parties.
Page 23
ARTICLE XXIII
NOTICE & ADDRESSES
The Buyer
SUGAR CORPORATION
Telephone +251 11 551 97 00
Fax +251 11 551 34 88
P.O.BOX 20034 1000
E-Mail:
etsugar.marketing@gmail.com
The Seller
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
ARTICLE XXIV
AMENDMENT
This contract may be amended by the agreement of the two parties. In
witness thereof, the parties hereto have affixed their respective signatures
on this _____________________2016.
On behalf of the Buyer
___________________
On behalf of the Seller

___________________
Witnesses
Name
1. ___________________
Signature
______________
2. ___________________
______________
3. ___________________
______________

Page 24

WHITE CANE SUGAR
Appendix A
FREIGHTING TERMS FOR BAGGED SUGAR

1.
TYPE OF VESSEL
a. Tween deck vessel with MacGregor or similar hatch covers, with holds, the
ceilings, sides should be flush and free from any obstructions which might
damage the bags, such as frames, ribbing or battening.
b. Vessels to have a maximum of three decks with minimum height clearance
between the decks 2.3 meters.
2.
DIMENSIONS
Maximum arrival of vessel should not exceed a draft of 9.6 meters at discharge port.
Any lighter age due to vessels draft exceeding 9.6 meters to be for owners account and
the time not to count as lay time.
3.
HATCHES
a. Opening and closing of hatches to be for the account of the ship.
b. On completion of loading sugar into the lower hold of tween deck vessels all
Macgregor, or similar type tween deck hatch covers must be closed before the
balance of the sugar is loaded in the tween decks.
c. During discharge, pontoon, or similar type tween deck hatch covers may either
be opened fully or completely removed and stowed away from sugar so as not to
impede discharge.
4.
AGE
Vessel maximum age 30 years at time of shipment shall be acceptable with overage
insurance premium and related local taxes for sellers account for vessel over 15 years
old.
5.
VESSEL OVERAGE INSURANCE

Any overage vessel's insurance premium for vessel over 15 years old
should be for Seller's account and such premium shall be in line with Lloyds
scale plus Ethiopian Insurance Corporation local taxes levied on it.
6.
LAY TIME
a. Notice of Readiness to be presented in writing during official working hours as
applicable at the discharge port Thursday, Friday, and legal/local holidays
always exempted.
b. If suitable berth is available on vessel arrival, NOR may only be presented after
vessels arrival at the suitable berth and after completion of all entry formalities.
Page 25
7.
c. For discharge, even if discharging commences earlier, time shall commence to

count after vessel berthed at 1400hrs if NOR has been presented during normal
working hours before noon and at 0800hrs on the next working day if NOR has
been presented during normal working hours afternoon.
d. At discharge working time during Ramadan period shall be as per discharge port
time circular.
DISCHARGE RATE
8.
a. The sugar shall be discharged using vessels own cranes at the average rate of
2000 metric ton per weather working day of 24 consecutive hours basis 5 holds
and provided vessel can deliver at this rate and each hold equipped with one
electro hydraulic proper working crane, prorate reduced if fewer. But if the sugar
may not be distributed evenly in each hold at load port, the sugar shall be
discharged at the average rate of 2000 metric ton per hold per crane pwwd of 24
consecutive hours and in this case time allowed shall be determined based on the
commanding hatch/hold quantity. Time from Thursday noon until Saturday
0800hrs and from 5PM on the day preceding a holiday until 8AM the day after a
holiday shall be excepted even if used.
b. Performing vessel to be fully geared with all gear capable of lifting a minimum
of 5 metric tons.
c. Vessel should own proper electro hydraulic working crane and able to discharge
simultaneously from all hatches using vessels gear.
d. Vessel with derrick cranes is not permitted. Shipment as part cargo is not
permitted.
e. Shore crane/shore gangway should be arranged by the vessel to the vessel
account incase of vessel gear failure.
VESSEL NOMINATION AND FIXTURE
a. Sellers to guarantee that the vessels will be highest class
Lloyds registered and with an international registered P&I Club.
b. Vessel should be ISM code certified or the owners or operators
should hold an ISM code document of compliance.
c. Vessel to be fully ISM/DOC, ISPS certified and complaint.
d. Prior to fully fixing the vessel her full details are to be forwarded by the seller to
the Buyer for prior approval of their suitability at discharge which not to be
unreasonably withheld, Buyer having 24 hours SSHEX for reply after receipt of
vessel nomination failing which the seller shall proceed with chartering.
e. Nomination to include vessels Name, Age, Class, P and I club, DWAT, cargo
quantity, construction (single/tweendeck), number of holds/hatches, details of
vessel gear, crane cycle time, crane speed, crane maximum outreach,
laydays/canceling dates, itinerary/ETA at load port and
demurrage/dispatch/detention rates, etc
f. Vessel agent at discharge port to be nominated by Buyer and appointed by
owners with owners paying the customary fee. Owners to put the agents in funds
prior to arrival of the vessel at discharge port.
Page 26
9.
g. Performing vessels to be classed Lloyds 100A1 or vessel shall be fully classed

with a member of the International Association of Classification of Societies
(IACS).
h. Vessel also to be in a position of a valid P and I certificate with a first class P and
I club and having all necessary and valid certification to discharge at disport.
i. Any/all costs and/ or consequences of the vessels failure to comply with the
above are to be for charterers account.
SHIFTING
a. All time employed in shifting anchorages or between berths within same port
and all time spent on anchorage due to shifting not to count as lay time, and all
shifting expenses to be for owners account.
10.
DEMURRAGE/DESPATCH
a. Demurrage/Dispatch rate for a vessel shall be as per the relevant vessel charter
party and in line with fixed values at the time of chartering as per the type and
size of vessel to apply which should be notified to Buyer before chartering the
vessel.
b. Dispatch to be half of the demurrage rate and payable on all working time saved.
c. Demurrage to be payable by the Buyer to the seller per day or prorate for any
part of a day.
d. Demurrage/Dispatch to be settled within 15 days after completion discharge and
agreement of duly supported timesheets.
e. Provided a fully workable L/C is in place as per the contract, and if the shipping
documents are not received by the Buyer before the arrival of vessel, the Seller
shall instruct the vessel to allow discharge without original bills of lading upon
presentation of bank undertaking by the Buyer, failing which the Buyer is not
responsible for delay of vessel at discharge port due to the non availability of
original shipping documents.
11.
TAXES AND/ OR DUES

a. On cargo at destination to be for Buyers account.
b. On vessel and or freight at destination to be for owners account.
For the Buyer
___________________
For the Seller

___________________
Performance Security Form

Page 27

[To be issued by Commercial Bank of Ethiopia up on the request of the bidders' bank]
To: SUGAR CORPORATION
WHEREAS [insert complete name of Supplier] (hereinafter "the Supplier") has undertaken,
pursuant to Contract No. [insert number] dated [insert day and month], [insert year] to
supply [brief description of the Goods and Related Services] (hereinafter "the Contract").
AND WHEREAS it has been stipulated by you in the aforementioned Contract that the
Supplier shall furnish you with a security [insert type of security] issued by a reputable
guarantor for the sum specified therein as security for compliance with the Suppliers
performance obligations in accordance with the Contract.
AND WHEREAS the undersigned [insert complete name of Guarantor], legally domiciled in
[insert complete address of Guarantor], (hereinafter the" Guarantor"), have agreed to give
the Supplier a security:
THEREFORE WE hereby affirm that we are Guarantors and responsible to you, on behalf of
the Supplier, up to a total of [insert currency and amount of guarantee in words and
figures] and we undertake to pay you, upon your first written demand declaring the Supplier to
be in default under the Contract, without cavil or argument, any sum or sums within the limits
of amount of guarantee as aforesaid, without your needing to prove or to show grounds or
reasons for your demand or the sum specified therein.
This security is valid until the [insert number] day of [insert month], [insert year].
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No
458.
Signature and Seal of the Guarantors.
_____________________________________________
[Name of Bank or Financial Institution]
_____________________________________________
[Address]
_____________________________________________
[Date]
BUYER:
S UGAR CORPORATION
Page 28

PHILIPS BUILDING, 4TH FLOOR ROOM 413
PROFORMA INVOICE NO. -----------
COMMODITY: WHITE CANE SUGAR

The Seller shall supply White Cane Sugar with the following quality
specifications: -
Ser.No
1
2
3
4
5
6
Specifications
Moisture % by mass
(Maximum)
(Maximum)
grain size

7
8
Parameters
99.7
0.01 0.06
20
0.01
150
0.7 - 1mm
0.04 max
(Maximum)
(Maximum)
Crop Year
QUANTITY
UNIT PRICE
UNIT PRICE
0.04
2014/2015 2015/2016
-------- MT (MAXIMUM)
USD ----- PMT FOB

USD ----- PMT FREIGHT
USD ------ PMT CFR DJIBOUTI
USD ----- PORT VISIT
TOTAL AMOUNT :
FOB USD ---FREIGT USD ---CFR DJIBOUTI USD ---USD ----- PORT VISIT
Page 29
ORIGIN
------------
PACKING
: PACKED IN NEW SOUND POLYTHENE-LINED

BROWN/WHITE COLOR POLYPROPYLENE BAGS OF 50 KILOS NET
WEIGHT EACH SUITABLE FOR EXPORT WITH MINIMUM TARE WEIGHT OF
160 GMS.
SHIPMENT
--------------------
PORT OF LOADING
PORT OF DISCHARGE :
DJIBOUTI PORT
ADVISING BANK NAME
---------------------
-------------------
ADVISING BANK ADDRESS:------------------SWIFT CODE :
-------------------
ALL OTHER TERMS AND CONDITIONS WOULD BE AS PER THE CONTRACT NO. -------- DATED ------.
FOR (NAME OF THE SUPPLIER)
SIGNATURE
STAMP
Page 30

160000MT White Sugar Cane Tender On Edition 2

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