TCP seals deal for import of 0.1 million tons of urea

The Trading Corporation of Pakistan (TCP) has finalized deal for the import of 100,000 tons of urea at $346.11 per metric tons for domestic consumption. Following the directives of the federal government, in the third week of last month, the state-run grain trader issued tender for the import of 0.1 million metric tons urea to avoid urea shortage in the domestic market in Rabi season.
The urea import tender was opened on October 22, 2018 and some 11 bidders participated in the tender. Four bids were found non-responsive, while the remaining seven were responsive in terms of prescribed evaluation criteria. The bidders quoted prices in the tender ranging from $346.11 to $367.95 per metric ton (C&F) for supply of 100,000 metric tons.
The lowest bid was submitted by Ameropa Asia Pvt Ltd, which offered to supply 100,000 tons of urea at $346.11 per ton (C&F). Conforming to technical specifications and terms & conditions of the tender, TCP accepted the first lowest offer and accordingly the contract was awarded to Ameropa Asia Pvt Ltd on Wednesday for urea supply.
As per amended tender term and conditions, interested parties were required to submit bids for the entire quantity, ie, 100,000 metric tons of the tender.
M/s Aries Fertilizer Group offered to supply commodity at $351.97 per metric ton, Agrifert Liven $352.88 per metric ton, Quantum Fertilizer $353.90 per metric ton, Swiss Singapore Overseas Enterprises $357.33 per metric ton, Dreymoor Fertilizer 361.72 and CHS Ins quoted a price of $364.37 per ton for supply of urea.
While, bids of HELM AG, Agri Commodities & Finance and Keytrade AG Zurchestr were non-responsive due to conditional offers and one bidder namely Samsun C&T Corporation submitted a regret letter.
The TCP has already asked bidders that the supplied urea will be strictly in accordance with the standards and specifications prescribed by Pakistan Standards & Quality Control Authority (PSQCA) and Import Policy Order in force.
In the second week of this September, the Economic Coordination Committee (ECC) of the Cabinet allowed the import of some 100,000 tons urea to avoid shortage in the domestic market. Accordingly, the state-run grain trader was given the task to import urea from international market as local urea plants are unable to produce sufficient quantity of urea, mainly due to gas curtailment.
Industry was estimating some shortage of urea in the Rabi season, therefore in order to ensure adequate urea stocks in coming months; the federal government decided to import some 0.1 millions urea.