Danida calls off tender due to over-pricing by Danes

Four Danish companies were invited by Danida to tender for a diesel engine for a SONABEL power station in Burkina Faso.

As DT 13/92 reports, after receiving the bids, Danida proclaimed them to be between 30 and 50 per cent above world market prices. This assessment was based on a World Bank study of price levels for diesel power stations.

Following its evaluation, Danida gave the firms three days to lower their prices. However, none of them - ABB Electric, Intertec, BWSC or Semco - was willing to drop its price to Danida’s satisfaction.

The next step would have been to go to international tender. But in the meantime, it was decided to extend another power station instead. The original tender was therefore called off and a new one prepared.

“This proves that Danida does not buy Danish when Danish prices are far above world market prices," Danida’s Ole Bircher-Olsen declared.