Revolving fund account for CPEC IPPs approved: ECC allows import of 0.583MTs of wheat

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has allowed the import of 0.583 million tonnes of wheat and approved the revolving fund account for the CPEC Independent Power Producers from “Pakistan Energy Revolving Fund” to “Pakistan Energy Revolving Account”.

The meeting of the ECC presided over by Finance Minister Ishaq Dar on Monday sought approval that the subject title of the account may be changed from “Pakistan Energy Revolving Fund” to Pakistan Energy Revolving Account to bring it in conformity with the original CPEC agreement dated 8th November 2014.

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The ECC also approved the lowest bid of M/s Cereal Crop Trading at US$ 372/MT for the supply of 130,000 MT at Karachi ports for the shipment period from 16th December 2022 to 8th February 2023 and offer of Prodintorg, Russia on government-to-government (G2G) basis at S$ 372/MT for the supply of 450,000 MT at Gwadar Port for shipment period from 1st February 2023 to 31st March 2023.

The Ministry of National Food Security and Research, in the summary, informed the ECC 7thInternational Wheat Tender 2022 opened on 30November 2022 and keeping in view, the results of 7thinternational tender and G2G offer, it has been decided that any additional cost on inland transportation from Gwadar Port will be borne by the Passco to be recovered from provinces at the time of the release of wheat stock.

The ministry added the Trading Corporation of Pakistan (TCP) has opened tender for the import of 500,000 MT of wheat with rates for import of wheat through Gwadar Port as well as per advice of the Prime Minister’s Office (PMO). The TCP issued 7th tender on CFR basis at Karachi Ports and/or Gwadar Port for the shipments from 16th December 2022 to 8th February 2023 and 10 international bidders participated in it. Out of the total, nine bidders offered rates and one submitted regret letter.

The lowest responsive bids on CFR bulk basis for Karachi ports is from Cereal Crop trading at US$372/MT for supply of 130,000 and for Gwadar Port is from M/s Grand lower DMCC @US$ 377/MT for supply of 105.000 MT and the validity of bids is till 05-12-2022.

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The meeting was informed that the estimated cost of imported wheat, as calculated by the TCP for Karachi port is Rs91.121/M or Rs3,645/40 kg, whereas, cost at Gwadar port is projected Rs91.623/MT or Rs3,685/40kg.

The ECC was also informed that the TCP has also received revised offers from Prodintorg, Russia on G2G basis US$ 372/MT for supply of 450,000 MT on CFR bulk at Gwadar or Karachi Ports for the shipment period from 1st February 2023 to 31st March 2023.

The PASSCO has called tenders for inland transportation rates from Gwadar Port and are due to be opened on 14-12-2022

The ECC was further told that against the total allocation of 2.6 MMT of imported wheat allowed by the cabinet, 980,152 MT has already arrived, whereas, the TCP has awarded tenders for 685,000 MT (300,000 MT under G2G and 385,000 MT through open tendering). Therefore, with the current tender quantity of 500,000 MT and offer under G2G for 450,000 MT, the entire allocation of imported wheat of 2.60 MMT would be completed.

Copyright Business Recorder, 2022