In response to the Trading Corporation of Pakistan (TCP) urea import tender some 15 international suppliers have shown interest in the supply of the commodity. Sources told Business Recorder on Wednesday that so far no decision has been taken on the urea import tender and the price evaluation committee will finalise the deal today (Thursday).
Following the directives of the Economic Co-ordination Committee of the Cabinet on March 21, 2013, TCP issued an international urea import tender for the supply of 130,000 tons urea to avoid any shortage during upcoming crop season as the domestic fertiliser plants are unable to cater for farmers' needs due to gas shortfall.
Urea import tender was opened on Wednesday and overall some 15 international bidders/suppliers participated in the tender with prices quoted ranged from $374.73 per ton to $414.75 per ton Cost and Freight (C&F). Out of 15 bids, some 13 suppliers have been found responsive in terms of prescribed criteria, terms and conditions set by the state-run grain trader.
The lowest bid was submitted by M/s Helm DENEIMMITTLE, which offered to supply 80,000 tons of urea at a price of $374.73 per ton with an optional supply of 50,000 tons. Although, the lowest bid is responsive and according to prescribed terms and conditions, the price evaluation committee has decided to finalise the deal on Thursday. The price evaluation committee has three members -representative of TCP, ministry of finance and ministry of production and industries.
As lowest bid is for a quantity of 80,000 tons and the price matching is not allowed in the tender, therefore the committee has asked lowest bidder for supply of optional quantity as well as to complete the procurement of total targeted quantity of 130,000 tons urea, sources said and added that "the lowest bidder will give its response today, after which the committee will take a decision on the tender."
They said the committee has to take a decision on Thursday as the bid validity is only for two days and will be expiring on April 25, 2013. As per new terms and conditions, urea will be supplied strictly in accordance with the standards and specifications prescribed by Pakistan Standards & Quality Control Authority (PSQCA) and Import Policy Order in force. Unloading and transportation will be handled by National Fertiliser Marketing Limited.
According to the tender details made available to Business Recorder, M/s GAVILON FRET is the second lowest bidder, which has offered to supply 50,000 tons urea (firm) and 80,000 tons (optional) at a price of $379.73 per ton. INDIGRO SWITZER LAND has agreed to provide 50,000 tons (firm) and 50,000 (optional) at $386.44 per ton, M/s MULTI COMMERCE has offered a price of $390.50 per ton, LIVEN AGRISHEM PTE-Ltd has quoted a price of $391.88 per ton for supply of 50,000 tons (firm) and KOCH FERTILIZER has offered to supply some 50,000 tons of urea at $393 per ton.
M/s CHS EUROPE has agreed to provide 50,000 tons (firm) and 80,000 (optional) at $393.93 per ton. M/s QUANTUM's bid was for a quantity of 50,000 tons with a price of $396 per ton; DREYMOOR Fertiliser quoted the price of $396.92 per ton for 50,000 to 60,000 tons urea and AMSON GULF offered a price of $398.99 per ton with a quantity of 50,000 tons.
TEOPFER INTERNATIONAL has offered to supply 50,000 tons of urea at $398.99 per ton; SWISS SINGAPORE has submitted a bid for 50,000 tons with a rate of $399 per ton and M/s TRANSAMMONIA's bid was for 50,000 tons at a price of $399.77 per ton. SAMSUNG and NITORA quoted price of $402 and $414.75 per ton, respectively for 50,000 tons each. The TCP is already engaged in the import of urea and some four ships have already reached Pakistan from Saudi Arabia.