Friday, 14 November 2014

TCP seals deal for import of 385,000 tons of urea

Following the directives of the Economic Co-ordination Committee (ECC) of the Cabinet, the state-run grain trader finalised deals for the import of 385,000 tons of urea to avoid its shortage in the domestic market. Sources told Business Recorder on Thursday that the Trading Corporation of Pakistan (TCP) has procured this quantity through four tenders issued last month and the first shipment is expected to reach Pakistan by month-end.

The TCP conducted fourth urea import tender on November 13, 2014 for procurement of 70,000 tons urea and the tender was awarded to the second lowest bidder as first lowest was declared non-responsive on technical grounds. In response to TCP''s last urea import tender, some 7 international suppliers participated in the tender and quoted prices ranging from $312.22 per ton to $329.00 per ton.

The lowest price was offered by M/s Dan Moody Investment, which quoted a price of $312.22 per ton for 70,000 tons of urea while the second lowest bid was received from M/s Dreymoor, which offered the same quantity at $316.79 per ton. M/s Trammo stood third and agreed to supply 70,000 tons of urea at $317.17 per ton. M/s Helm offered to supply the same quantity at $319.44 per ton; M/s Quantum quoted a price of $322.65 per ton, M/s Multicommerce bid was $325.21 per ton and M/s Amber agreed to supply 70,000 tons of urea at $329.00 per ton.

The TCP bid evaluation committee after detailed analysis declared the first lowest bid namely M/s Dan Moody Investment non-responsive as its documents were not completed and accordingly announced to finalise the deal with second lowest bidder M/s Dreymoor, whose bid was declared responsive meeting all the terms and conditions of the tender. After acceptance of the bid, the TCP issued a contract award letter to M/s Dreymoor for the import of 70,000 tons of urea at $316.79 per ton.

Following the ECC directives, the TCP in the last week of October issued multiple tenders for the import of urea and the last tender was conducted on Thursday. Initially, the TCP issued four tenders for the import of 415,000 tons commodity, however later, following the federal government directives, the total quantity was reduced to 385,000 tons. Initial three tenders remained for 105,000 per tons each. However, the last tender was reduced to 70,000 tons compared to 100,000 per ton.

As the last deal has matured on Thursday, cumulatively, the TCP finalised the deals for the import of 385,000 tons and the complete quantity is likely to reach till mid-January next year to avoid any shortage in local market during the ongoing crop season. The first urea tender was opened on Monday for the import of 105,000 tons and some 10 international suppliers participated, quoting price ranging from $318.72 to $334.50 per ton. The tender was awarded to first lowest M/s Dreymoor at $318.72 per ton. While second lowest was M/s Liven, which quoted a price of $318.93 per ton.

Some 10 parties participated in the second tender conducted on Tuesday for 105,000 tons and was also awarded to M/s Dremoor at $318.39 per ton as its bid was lowest and responsive. Third urea tender was opened on Wednesday with 10 participants and M/s Samsung successfully won the tender quoting lowest price of $317.40 per ton.
Copyright Business Recorder, 2014

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