”Shady” urea deal by TCP annulled

The Ministry of Commerce (MoC) has taken strict notice of irregularity in the urea import tender and directed the Trading Corporation of Pakistan (TCP) to award contract to first lowest bidder, which was earlier declared non-responsive by the state-run grain trader. Accordingly, the TCP has reversed its previous decision and cancelled the deal of $337.17 per ton. Now the contract has been awarded to first lowest bidder at $335 per ton for the import of 50,000 tons of urea. 

Sources told Business Recorder on Saturday that the contract award letter has been sent by the TCP to lowest bidder namely M/s Pacific Exim Pvt Limited – (the local agent of M/s Toepfer International-Asia) for the supply of 50,000 tons of urea. Earlier, on June 5, 2013, TCP, declaring the first lowest bid non-responsive, awarded 50,000 tons of urea import contract to the second lowest bidder, which quoted $2.17 per higher price compared to first lowest bidder. The TCP had awarded contract to the second lowest bidder, which offered $337.17 per ton rate as compared to the first lowest bid of $335 per ton, they added. 

While awarding the contract to second lowest bidder, TCP officials claimed that the first lowest bidder”s offer was conditional and only for Gwadar port, therefore the corporation had declared it non-responsive being nonconforming to the tender terms and conditions and accordingly awarded the tender to the second lowest bidder. In response to TCP”s urea import tender, opened on June 5, 2013, some 15 international bidders/suppliers submitted their offers and quoted prices ranging from $335 per ton to $371 per ton Cost and Freight (C&F). 

M/s Toepfer International was lowest bidder, which offered to supply 50,000 tons of urea at a price of $335 per ton through Gwadar port. As per terms and conditions, the lowest bidder also deposited a bid bond of $570,000. The second lowest bid of $337.17 per ton was submitted by M/s Trammo for the supply of 50,000 tons through all three ports including Gwadar, Karachi and Bin Qasim. However, the TCP tender award committee denied awarding contract to the lowest bidder for the import of 50,000 tons of urea and declared it non-responsive. 

Sources said the ministry of commerce taking strict notice of irregularity in the TCP tender had officially asked TCP to reverse its decision. Following the directives of the ministry of finance, TCP Friday sent a contract award letter to M/s Pacific, the local agent of M/s Toepfer. They said that the earlier deal was expected to inflict an additional burden of $108,000 on the exchequer. 

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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