Following the directives of the Economic Co-ordination Committee (ECC) of the Cabinet, Trading Corporation of Pakistan (TCP) on Monday signed commercial agreement worth $100 million with Saudi Basic Industrial Corporation (SABIC) for import of upto 300,000 tons of urea to meet local demand.
The ECC had directed TCP to ensure supply of urea during Rabi crop for which its import be arranged through SABIC against $100 million credit grant of Saudi Fund for Development as well as purchase from open market, through open tenders. In order to make timely import of urea for Rabi season, TCP was speedily working for it. Not only did it sign agreement with SABIC on Monday, but also awarded a tender for the import of 100,000 tons of urea on an urgent basis.
The corporation has signed agreement with M/s Jaffer Brothers, representative of SABIC in Karachi, for import of 250,000-300,000 tons of urea valuing $100 million. The first shipment of around 60,000 tons will arrive by end-February 2011 while the same quantity will be delivered in March 2011. The balance shipments will be made to meet the country''s requirement for Rabi and Kharif crops.
In another bid for timely import of urea, TCP has awarded tender for import of 100,000 tons urea to the lowest bidder, M/s Gavilon Fertilizer LLC USA. TCP''s tender for the import of 0.225 million tons urea was opened on Monday and seven bidders participated in the tender and quoted prices ranging between $408.68 per ton to $438.87 per ton Cost and Freight (C&F) basis. The bid of M/s. Gavilon Fertilizer LLC USA for supply of 100,000 tons at $408.68 PMT was found the lowest and conforming to all technical specifications and the tender''s terms and conditions.
Hence, TCP awarded the tender to this supplier being the lowest bidder. The supplier has assured to ship complete quantity by February 28, 2011. "The rates received in this tender are in consonance with the prevailing international market prices of urea and as per the terms and conditions, urea shipments would start within one week of the opening of Letter of Credit by TCP in favour of the successful bidder," according to a TCP official.
In addition to this tender, M/s SABIC has also agreed to supply 60,000 tons urea by end-February 2011. The distribution, transportation and bagging will be handled by M/s National Fertilizer Marketing Limited (NFML) to provide urea to farmers in time for meeting Rabi requirement.
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