{"id":561003,"date":"2021-03-22T03:57:14","date_gmt":"2021-03-22T03:57:14","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/22\/easterns-new-tender-will-be-based-on-point-count-bidding\/"},"modified":"2021-03-22T03:57:14","modified_gmt":"2021-03-22T03:57:14","slug":"easterns-new-tender-will-be-based-on-point-count-bidding","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/22\/easterns-new-tender-will-be-based-on-point-count-bidding\/","title":{"rendered":"Eastern\u2019s new tender will be based on point-count bidding"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-02\"><\/a> <strong>The bidding process for a license to establish Egypt\u2019s second major tobacco <\/strong><strong>company will be assessed on a points system<\/strong>, according to the conditions booklet the Industrial Development Authority (IDA) has released for the auction, <a href=\"https:\/\/alborsaanews.com\/2021\/03\/21\/1427618\">the local press<\/a> reports. Bidders looking for a piece of Eastern Company\u2019s monopoly on the sector should earn at least 70% of the system\u2019s total 13k points to qualify for the tender.<\/p>\n<p><strong>What does the license allow you to do? <\/strong>Go head to head with Eastern \u2014 provided you don\u2019t mind having the state-owned giant on board as a 24% partner in your venture.<\/p>\n<p><strong>Who\u2019s interested so far? An unnamed Emirati is likely to throw its hat in the ring<\/strong>, according to a report in Al Mal\u2019s print edition, which notes the bidder has a particular interest in non-traditional nicotine products including e-cigarettes. Major tobacco distributors and brand owners <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/37788807-9726-457b-9df0-f4fca702d0f2\">have expressed reservations<\/a> about the conditions of the license sale, including a complaint that giving the new company an effective monopoly on e-cigarettes and heated tobacco would be anti-competitive.<\/p>\n<p><strong>The value of the license may reach USD 350 mn<\/strong>, Eastern\u2019s CEO Hany Aman told El Hekaya\u2019s Amr Adib last night (<a href=\"https:\/\/www.youtube.com\/watch?v=ycCRyDZasKI\">watch, runtime: 7:20<\/a>).<\/p>\n<p><strong>There are, naturally, conditions: <\/strong>The IDA\u2019s conditions would <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/fc6218c5-a369-4987-b5ec-3e9aa59744bb\">protect Eastern\u2019s market share<\/a> by preventing the new company from producing cigarettes at the same price point as the monopoly\u2019s mass-market Cleopatra brand, which accounts for 98% of Eastern\u2019s revenues, the state-owned cigarette manufacturer confirmed yesterday. <strong>Other conditions:<\/strong><\/p>\n<ul>\n<li>Minimum production of 15 bn cigarettes a year and a maximum of 50 bn (Egypt currently produces 80 bn smokes per year);<\/li>\n<li>No restrictions on exports;<\/li>\n<li>Allowed to purchase or rent some of Eastern\u2019s unused assets<\/li>\n<li>Must pay 25% of the value of the license within a month of being selected, with the rest in three quarterly chunks;<\/li>\n<\/ul>\n<p><strong>Bidders will accumulate points in two categories:<\/strong> Industry track record (7.5k points with a relative weight of 60%) and the pillars of the manufacturing proposal (5.5k points with a 40% relative weight). Track record covers everything from experience specific to the tobacco industry, the bidder\u2019s forays into other industries, investments in other industries, and a financial analysis of their portfolio and sources of funding, among other criteria. Bidders will also be scored based on the types of cigarettes they plan to make, the expected water and energy consumption levels and emissions, the timeline for getting the company off the ground, the expected size of its staff, and how much it would rely on Eastern labor force.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The bidding process for a license to establish Egypt\u2019s second major tobacco company will be assessed on a points system, according to the conditions booklet the Industrial Development Authority (IDA) has released for the auction, the local press reports. Bidders looking for a piece of Eastern Company\u2019s monopoly on the sector should earn at least [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8787],"tags":[1978,247,72,289,7401],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-561003","post","type-post","status-publish","format-standard","hentry","category-competition-watch","tag-competition-watch","tag-eastern-company","tag-enterpriseam","tag-industrial-development-authority","tag-tobacco","wpautop","entry"],"acf":{"mongo_id":"f636aa38-0a36-410d-b9b2-ff9fad1ae5ee","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[560997],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Eastern\u2019s new tender will be based on point-count bidding - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/22\/easterns-new-tender-will-be-based-on-point-count-bidding\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Eastern\u2019s new tender will be based on point-count bidding\" \/>\n<meta property=\"og:description\" content=\"The bidding process for a license to establish Egypt\u2019s second major tobacco company will be assessed on a points system, according to the conditions booklet the Industrial Development Authority (IDA) has released for the auction, the local press reports. Bidders looking for a piece of Eastern Company\u2019s monopoly on the sector should earn at least [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/22\/easterns-new-tender-will-be-based-on-point-count-bidding\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-22T03:57:14+00:00\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/22\/easterns-new-tender-will-be-based-on-point-count-bidding\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/22\/easterns-new-tender-will-be-based-on-point-count-bidding\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Eastern\u2019s new tender will be based on point-count bidding\",\"datePublished\":\"2021-03-22T03:57:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/22\/easterns-new-tender-will-be-based-on-point-count-bidding\/\"},\"wordCount\":429,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"competition watch\",\"Eastern Company\",\"EnterpriseAM\",\"Industrial Development Authority\",\"tobacco\"],\"articleSection\":[\"COMPETITION WATCH\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/22\/easterns-new-tender-will-be-based-on-point-count-bidding\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/03\/22\/easterns-new-tender-will-be-based-on-point-count-bidding\/\",\"name\":\"Eastern\u2019s new tender will be based on point-count bidding - 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The period during which companies could submit\u2026","rel":"","context":"In &quot;Investment Watch&quot;","block_context":{"text":"Investment Watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/51.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":565392,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/06\/whats-up-with-the-tobacco-license-tender\/","url_meta":{"origin":561003,"position":1},"title":"What\u2019s up with the tobacco license tender?","author":"enterpriseam admin","date":"6 April 2021","format":false,"excerpt":"The tender for a license to set up Egypt\u2019s second tobacco company appears to be scheduled to go ahead later this month, after the Industrial Development Authority (IDA) decided over the weekend to shelve the tender, the local press reported, citing an unnamed IDA source. Two industry sources who spoke\u2026","rel":"","context":"In &quot;SPEED ROUND: COMPETITION WATCH&quot;","block_context":{"text":"SPEED ROUND: COMPETITION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round-competition-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/4\/350.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561328,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/04\/up-in-smoke\/","url_meta":{"origin":561003,"position":2},"title":"Up in smoke","author":"enterpriseam admin","date":"4 April 2021","format":false,"excerpt":"Egypt puts tender for tobacco license on ice: The Industrial Development Authority (IDA) has shelved a tender for a license to set up Egypt\u2019s second tobacco company, two unnamed industry sources told Reuters. The bidding round was slated to be held this Tuesday. Companies were informed about the decision one\u2026","rel":"","context":"In &quot;COMPETITION WATCH&quot;","block_context":{"text":"COMPETITION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/competition-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":563687,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/07\/13\/tobacco-license-tender-to-be-rolled-out-on-1-august\/","url_meta":{"origin":561003,"position":3},"title":"Tobacco license tender to be rolled out on 1 August","author":"enterpriseam admin","date":"13 July 2021","format":false,"excerpt":"Tobacco license tender goes live in August: Tobacco players will be able to bid for a license to establish Egypt\u2019s second major tobacco company from 1 August in the second iteration of a tender that was pulled earlier this year after attracting criticism for containing unfair terms, Al Shorouk reports.\u2026","rel":"","context":"In &quot;COMPETITION WATCH&quot;","block_context":{"text":"COMPETITION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/competition-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/7\/182.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561186,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/29\/the-latest-on-eastern-co\/","url_meta":{"origin":561003,"position":4},"title":"The latest on Eastern Co.","author":"enterpriseam admin","date":"29 March 2021","format":false,"excerpt":"New, more competitive terms for the license to establish Egypt\u2019s second major tobacco company could be introduced after several tobacco players filed a formal complaint with the Federation of Egyptian Industries\u2019 tobacco division. The complaint looks to scrap the conditions booklet the Industrial Development Authority (IDA) had issued for the\u2026","rel":"","context":"In &quot;COMPETITION WATCH&quot;","block_context":{"text":"COMPETITION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/competition-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":562706,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/03\/the-tobacco-license-tender-may-be-back-on-again\/","url_meta":{"origin":561003,"position":5},"title":"The tobacco license tender may be back on again","author":"enterpriseam admin","date":"3 June 2021","format":false,"excerpt":"Revised terms for the license to establish Egypt\u2019s second major tobacco company have been handed to four local tobacco companies, according to a document seen by Reuters. The conditions booklet for the tender \u2014 which is set to end Eastern Tobacco\u2019s historical monopoly over the sector \u2014 has been redrafted\u2026","rel":"","context":"In &quot;COMPETITION WATCH&quot;","block_context":{"text":"COMPETITION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/competition-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/46.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/561003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=561003"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/561003\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/560997"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=561003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=561003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=561003"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=561003"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=561003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}