Non-project grant Japan to supply 71,000 tons of urea

Japan International Co-operation System (JICS) has finalised a deal to supply some 71,000 tons of urea worth $21 million to Pakistan under Japan non-project grant. Sources told Business Recorder on Tuesday that JICS is playing a middle role for utilisation of available funds under Japan”s Non-Projected Grant Aid 2009 (1st), 2009 (2nd), which is around $21.35 million. 

Recently, JICS awarded a tender for the supply of urea and as per the agreement, urea consignment under this programme is likely to reach Pakistan during this month. On 22nd July this year, JICS issued a tender for the import of about 71,000 tons of urea for Pakistan and accordingly a tender was opened on August 27, 2013. Some nine pre-qualified bidders participated in the tender. 

In response to JICS urea import tender, lowest offer was received from M/s Key Trade AG Switzerland, which was agreed to supply some quantity at $299.95 per ton cost and freight (C&F). M/s Trammo submitted second lowest bid of $307.37 per ton, M/s Agri-commodities bid was $318.00 per ton, M/s Samsung C&T $318.50 per ton, M/s Mitsui $318.70 per ton, M/s Dragon Asia $319.80 per ton, M/s Mitsubishi $322.98 per ton, M/s Midgulf $335.74 per ton and M/s Marubeni $340.00 per ton. 

As the lowest bid was according to the described terms and conditions, JISC awarded the tender to the lowest bidder namely M/s Key Trade at $299.95 per ton (including cost and freight and pre-shipment inspection). A contract letter has also been issued to the supplier. As per contract letter M/s Key Trade will supply 71,178 metric ton (10 percent plus-minus) against the tender. The supply will be made from the Gulf origin (Qatar, Kuwait, Bahrain, UAE, Oman or Saudi Arabia). 

The urea is likely to arrive through two shipments as the total quantity cannot be supplied through a single shipment. The first shipment is expected in the second or third week of September 2013 while the complete quantity is likely to reach here by the end of September or first week of October. Source said before issuing urea import tender, JICS also conducted a pre-qualification process to make this deal transparent. In response to JICS pre-qualification request, some 21 international parties/suppliers applied for the pre-qualification. Out of 21 applicants, JICS pre-qualified some 13 suppliers and only pre-qualified parties participated in the tender. 

Trading Corporation of Pakistan (TCP) appointed M/s CISCO Private Limited, Karachi as pre-shipment inspection (PSI) agent to supervise the loading at loading port. As per the tender awarded by JICS, the supplier will nominate the ship before loading. The nomination of the ship is still awaited, which is expected in the current month. 

Copyright Business Recorder, 2013

Muhammad Ramzan Rafique
Muhammad Ramzan Rafique

I am from a small town Chichawatni, Sahiwal, Punjab , Pakistan, studied from University of Agriculture Faisalabad, on my mission to explore world I am in Denmark these days..

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