Japan non-project aid 40,000 tons of urea to arrive tomorrow

First urea consignment of 40,000 tons, under Japan non-project grant worth $21 million, is arriving Sunday. Sources said Japan International Co-operation System (JICS) is facilitating utilisation of available funds under Japan”s Non-Project Grant Aid 2009 (1st), 2009. This will be around $21.35 million and last month JICS finalised a deal with M/s Key Trade AG Switzerland for the import of some 71,000 tons of urea for Pakistan. 

On behalf of government of Pakistan, state run grain trader – Trading Corporation of Pakistan (TCP) is responsible for the import of this urea, while, National Fertiliser Marketing Limited (NFML) will manage the handling, transportation and distribution of the imported urea. Complete quantity of urea under Japan grant will arrive through two shipments – the first consignment is reaching Pakistan on October 6, 2013. “A ship MV Thor Harmony carrying 40,000 tons of urea has already sailed from Qatar and is likely to berth at FAP Terminal at Port Qasim on Sunday evening or early Monday morning,” they said. Next shipment for the remaining quantity is likely to arrive in next two weeks, they added. 

M/s CISCO Private Limited, Karachi has been appointed as pre-shipment inspection (PSI) agent by the TCP to supervise the urea loading at the loading port. Sources said urea arrived under Japan non-project grant will be sold to farmers/dealers at market rate and after paying the expenditure cost to TCP and NFML remaining income generated form this urea will be deposited in a separate account for other projects. 

Japan aid in shape of urea is very beneficial to Pakistan as presently it is facing shortage of urea and the domestic producers are unable to meet the domestic demand mainly due to gas curtailment. The country is already importing urea on an urgent basis to avoid any shortage in the domestic market. Import of 0.3 million tons of urea is already in process and so far some 263,000 tons of urea has arrived through seven shipments. 

In addition, last Thursday the Economic Co-ordination Committee of the Cabinet has directed the TCP to import another quantity of 0.5 million tons of urea for local consumption. On July 22 this year, JICS issued a tender for the import of about 71,000 tons of urea for Pakistan and in response, lowest offer was received from M/s Key Trade AG Switzerland, which agreed to supply same quantity at $299.95 per ton (including cost and freight and pre-shipment inspection). 

As the lowest bid was according to prescribed terms and conditions, JISC awarded the tender to the lowest bidder. As per contract letter M/s Key Trade will supply 71,178 tons (10 percent plus-minus) against the tender. The supply will be made from Gulf origin (Qatar, Kuwait, Bahrain, UAE, Oman or Saudi Arabia). 

Copyright Business Recorder, 2013

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