The Trading Corporation of Pakistan (TCP) has blacklisted an international urea supplier for the next tender after it failed to supply urea in accordance with an agreement with the corporation. Sources told Business Recorder on Wednesday that the restrictions applied on a pre-qualified bidder - Global Energy and Commodities Exchange (GECE), barring it from participating in the upcoming urea import tender.
"After a urea import deal of 50,000 tons lapsed, the state-run grain trader has decided not to allow the GECE to participate in the next urea tender, which will be opened in the third week of this month," they said. The urea import deal had lapsed in the first week of May this year. "GECE got four extensions for the shipment. Every time it failed to ship the consignments and finally TCP was compelled to forfeit the (firm's) performance guarantee," they added. The value of the performance guarantee, deposited with the state-run grain trader, was over Rs 107 million.
The sources said that TCP had taken the ministry of commerce into confidence on the issue. Following the directive of Economic Co-ordination Committee, TCP would open another urea tender on May 21 for importing another 300,000 tons of urea.
The deal with the Global Energy and Commodities Exchange was finalised in the second phase of urea import. The firm participated in TCP's urea import bid and agreed to supply urea at $431 per ton with expected delivery in third week of February 2012.
However, despite getting a 10-week relaxation for the urea supply, the supplier did not make shipment till April 30 this year. This is not the first time that TCP has barred an international supplier from participating in the tender. Previously, a bidder named 'Sadaat Business Group' of Dubai was blacklisted in February 2011 after it failed to ship sugar despite wining the tender.
Sources said that TCP move was aimed at avoiding attempts to sabotage the next urea import tender, which is being opened on the ECC directives. They said that there was also no surety that the bidder will not again breach its commitment.
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