1. United Nations Zimbabwe Fuel Contract Annex 8

2. Assessment - Dependability - Cost savings - Support to program partners - Security

3. Tendering - Locally and regionally - Included fuel cos & private owners - Split tender in 2 parts; Fuel procurement @ 100,000L pm Mgt and security - Exclusive UN access - Electronic fuel mgt. system - Staff access

4. Analysis n Cost of previous contract @ 100,000L x.58 cents = $58,000 usd per month n Annual cost = $696,000 usd

5. Analysis Contd n Cost of new contract @ 100,000L x.35 cents per liter (incl. mgt fee) = $35,000 usd per month n Annual cost = $420,000 usd Savings per annum= $276,000 usd

6. Issues - Tender did not turn out as planned - Split tender (fuel/fuel station) - Shuttle diplomacy required - Lack of interest by smaller agencies

7. Lessons Learned n Obtaining agreement from some agencies n Signing of MOUs too slow n System limitations in UNICEF system (ProMS) n Watch out for evaporation loss n Pre-purchase & fuel mgt. requires good oversight n Potential for income generation with counterparts