Following relaxation in rules by Public Procurement Regulatory Authority (PPRA), Trading Corporation of Pakistan (TCP) has decided to import urea on urgent basis and complete procurement for Kharif season in next two weeks.
A fresh urea import tender was issued on Friday by TCP for procurement of 50,000 tons of the commodity, as in the third urea tender's lowest bidder did not offer for supply of the complete tendered quantity.
TCP's third urea import tender was opened on Thursday and some 13 international suppliers participated in the tender and quoted price ranging $426.39 to $478.28 per ton. However, the lowest bid submitted by M/s CHS was for 50,000 tons against required quantity of 100,000 tons. Lowest bidder offered to supply urea at $426.39 per ton and as per term and conditions also deposited a bid amount of $792,000.
In such a situation, when the tender was for a quantity of 100,000 tons and lowest bid was for 50,000 tons of urea, TCP was in a fix as price matching was restricted by PPRA and delay will result in expansive urea procurement due to rising prices in international market, besides delay in urea import.
To review the emerged situation, TCP's tender award committee met on Friday and finally decided to award tender to lowest bidder and issue a fresh tender for remaining quantity. At the same time, committee decided to complete procurement in next two weeks, as PPRA has granted some relaxation and allowed TCP to issue international tender with 15-day timeframe instead of the 30 days period.
After the decision of the committee, TCP also finalized a deal for import of 50,000 tons of urea at $426.39 per ton (Cots and Freight) with M/s CHS Europe, conforming to the technical specifications and terms & conditions of the tender. With award of this tender, TCP has finalized contracts for procurement of 250,000 tons of urea as against the total target of 300,000 tons assigned by the federal government for ongoing Kharif season.
For the procurement of remaining quantity, TCP has issued a new tender with opening date of July 27, 2012. TCP has invited bids from foreign suppliers, who are pre-qualified with TCP for supply of 50,000 tons in bulk quantity through worldwide resources on C&F as per TCP's term and condition.
According to tender term and condition, TCP has strictly asked for supply of urea in accordance with the standard and specifications described by Pakistan Standard & Quality Control Authority (PSQCA) for urea and import laws of the country including import policy.
In addition, TCP has fixed a minimum quantity of 50,000 tons for bids and said that bids less than minimum quantity will not be considered or accepted. According to TCP tender, which will be released Saturday, interested pre-qualified urea suppliers, can supply urea form worldwide origins, may submit their bids in sealed envelops at TCP offices till July 27, 2012 latest by 10:30 am and bids will be opened on same day after half hour.
"We are making all efforts to import urea as soon as possible as Kharif season is in its peak and urea prices are on surge in international market due to high demand," a TCP official said. This is the fourth urea import tender issued for procurement of urea, he added.
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