MULTAN, March 2: A second tender called by the Trading Corporation of Pakistan (TCP) for the import of urea is likely to hit snags owing to the short period given to the contracting firms for supply of fertilizer in the country.

The TCP had floated its tender No 01/06 for the import of 50,000 tons of urea at the end of January with an announcement that the bids would be opened on Feb 13. But, the tender could not be opened on the given date for the reasons better known to the authorities concerned.

Some 13 importers had reportedly shown interest in the tender. The contending firms were later informed through the fax messages that now the process would be initiated on Feb 20. However, only five firms remained in the arena to contend for the contract to supply urea.

The process to evaluate the technical and financial proposals of the five firms could not be accomplished on Feb 20, and the TCP had to defer it for the next day. On February 21, two of the five contending firms were knocked out on technical grounds. Finally, a contract for the import of 40,000 tons of urea was awarded to a Swiss firm-Trans Ammonia- through its agent International Trading House, Karachi, at $249.9 per ton.

The delivery schedule given in the initial documents of the tender was 15 days after opening of the letter of credit for a quantity of 25,000 tons and 21 days for the remaining consignment of the fertilizer.

However, the TCP authorities reportedly amended it later and asked the importers to deliver the contracted amount of urea at the Karachi Port by March 13.

Sources in the TCP told Dawn that the LC for the contracted 40,000 tons of urea could not be opened even on March 1. “That simply means that the tendered quantity of urea can not reach the country by the TCP deadline,” they said adding that shipping of any consignment from Ukraine to Pakistan needs at least 15 days after opening of LC.

When contacted, the TCP director general Abdul Malik said he did know whether the LC had been opened or not. “Shipment period of this tender has nothing to do with the opening of LC,” he asserted.

When contacted a representative of the Swiss firm, Trans Ammonia, said on the request of anonymity that the firm and its Pakistani agent were negotiating with the TCP over the shipment period. He, however, declined to comment on whether the LC had been opened or not saying “It’s our business secret which we can not share with the media.”