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 PSU jointly with the Country Office ofTanzania conducted an international process for Toyota Models.

It was noted thatconducting a process to secure Toyota models is virtually impossibleconsidering similar models in the market and Toyota models not being thecheapest in the market. It should be noted that the Country Office purchasedsimilar vehicles in 2014 for the government of Tanzania through TGS (ToyotaMotor Cooperation Japan’s agent for UN Sales) using an existing long termagreement The country office contacted PSU in this case for similar requestfrom the government of Tanzania for 2016 as they could not secure the vehiclesthrough TGS because TGS was informed by Toyota Motor Japan that they are notsupposed to quote for the vehicles and that the Country office should do the purchasethrough a local Toyota appointed dealer in this case Toyota Tanzania. With therequest from the County Office and considering they could not secure thevehicles through TGS, PSU contacted Toyota Motor Cooperation, Japan and theyresponded same and informed PSU the purchase should be done through the localToyota dealer (Please see Attachment 4). With the response from Toyota MotorCooperation and considering PSU would not be able to utilized the existing LTAswith Toyota; Exstock with TGS and Ex-factory with Toyota Motor Cooperation(TMC), PSU proceeded to request for prices from Toyota Tanzania in order to doa comparison and possibilities of purchasing locally if prices are comparableto the LTA prices (Please see Attachment 2).

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Toyota Tanzania was requested toprovide prices for the requested models. Initially the quoted Ex works pricesfrom Toyota Tanzania were higher than the TGS’s LTA ex-work prices. On thisbasis, PSU could not proceed with process. After series of back and forthexchanges with Toyota Tanzania, they finally accepted to provide PSU with theprices of the requested models as per LTA with TGS. Based on the aboveinformation, PSU is seeking the award of the contract to Toyota Tanzania tosupply Toyota models based on direct contracting for the models as per TGS LTAEx-works prices and for further models requested by the Country Office ofTanzania which are also in line with the TGS LTA ex works prices .

The initialcontract will be for 175 vehicles totally USD 7,774,814.00. This include thetotal Ex-works prices for all vehicle plus including freight, insurance andlocal charges.

  It should be noted thatthere is an additional request for 30 vehicles which if Toyota Tanzania iswilling to maintain the prices as per TGS LTA Ex prices, the contract amountcould increase to approximate USD 8,900,054.00. PSU is therefore seeking theapproval of Toyota Tanzania for a ceiling amount of USD 10,000,000.00 based ondirect contracting.

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