RIZWAN BHATTI

KARACHI: The Trading Corporation of Pakistan (TCP) has finalized a deal for procurement of 10,000 tons Long Grain White Rice (Irri-6) for China. The procured rice will be dispatched to China for flood affected masses as a gift from the people of Pakistan.

Following the directives of the federal government, on Aug 5, 2016, the state-run grain trader invited bids under the Public Procurement Rules 2004 on Cost Insurance and Freight (CIF) basis from companies dealing in export of rice for export of 10,000 tons Irri-6 to China.

The TCP opened the tender on Wednesday and received poor response as only three parties participated in the bidding process. In response to TCP’s urea import tender some three companies/traders submitted their offers and quoted price ranging between Rs 41,392 per metric ton to Rs 44,920 per metric tons for the supply of Irri-6 rice.

The M/s Chappal Traders was the lowest bidder, which offered to supply 10,000 tons Irri-6 rice at a price of Rs 41,392 per metric ton on CIF basis. M/s Garib Sons offered to supply 10,000 tons of Irri-6 rice at Rs 44,625 per metric ton. The third bidder M/s BABA Enterprises quoted Rs 44,920 per metric ton for 5,000 tons rice.

After bid evaluation, first lowest bid was declared responsive and accordingly TCP awarded contract to M/s Chappal Traders for supply of Irri-6 rice to China.

As per the tender’s terms and conditions, the rice will be double polish/extra well-milled and free from dead or alive insects and “From the people of Pakistan for the People of China” will be printed on each bag of Long Grain White Rice (Irri-6).

Within two (2) working days of issuance of letter of award of bid, the successful bidders will be required to furnish a Performance Bond of 5 percent of the bid value in the shape of a pay order or demand draft or bank guarantee from a scheduled bank in Pakistan.

The performance bond will be forfeited without notice in case the successful bidder commits any breach of contract or fails to fulfil any terms and conditions of the contract.

The performance bond shall be released within 15 days after the successful performance of the contract, however, no interest will be payable to the seller on the amount of performance bond irrespective of the time of release of performance bond.

As per condition, the TCP will appoint a recognized Pre-Shipment Inspection Agency (PSIA) which will be responsible for conducting necessary tests to ensure quality of rice and PP bags as per specification prescribed in the tender document.

PSIA will get the offered rice tested from PCSIR Lab or any other lab to its satisfaction in conformity with the specification given in the tender and conduct ‘aflotoxin’ test to check that the rice is fit for human consumption.

If the shipment of cargo is not completed within the delivery period as prescribed in Clause-15 of this document, the seller will be liable to pay the TCP on demand without any question whatsoever, a penalty equal to 0.1 percent of contract price for each day of delay and any other incidental/consequential expenses or loss of benefits to the TCP. The quantum of such damages will be determined at the sole discretion of TCP.

The supplier will also ensure comprehensive marine insurance cover of the cargo minimum @ 110 percent from an insurance company.