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Sunday Dec 22, 2024
Friday, 24 November 2017 00:00 - - {{hitsCtrl.values.hits}}
By Chathuri Dssianayake
Cabinet this week approved a proposal made by Agriculture Minister Duminda Dissanayake to procure 72,000 metric tons of urea (prilled) from JAT Holdings Ltd.
Following a call for tenders to supply 72,000 MT of urea (prilled), 30000MT of MOP and 30000MT of TSP under DA terms, the Ministry received only five bids for urea, one bid for TSP and no bid for MOP.
The Ministry has also re-advertised a second call for bids to supply MOP and TSP yesterday, hoping to attract interested parties. “The issue is that the world market prices for the commodities have gone up, but since there price cap imposed the suppliers will have to bear the burden so they are not keen to bid for the tender,” the Agriculture Ministry Secretary told Daily FT.
Following evaluations by the Technical Evaluation Committee, bidders who did not present prices under DA terms and bidders with other major price variations were rejected on the preliminary evaluations, the Minister informed Cabinet.
Following the preliminary evaluations, only JAT Holdings Ltd. adhered to the specifications outlined by the Ministry.
The company was selected to supply as the corrected laboratory reports presented by JAT Holdings were relevant to the specifications at $ 328 per metric ton on the basis of a 180-day credit period – the most advantageous credit period, the Minister said, in his proposal to Cabinet.
Following negotiations the price has been further brought down to $ 327.40 per MT.
