TCP receives seven bids for sugar import

According to TCP’s official figures, seven bids were received from world sugar dealers through their local agents and immediately the price evaluation committee of the corporation went into session

As per terms and conditions laid down in the tender documents, the TCP has to award tender to the lowest. Consequently the evaluation committee of the TCP processed the tender documents of the lowest bidder.

However, the committee found that the bank guarantee of the lowest bidder is not genuine, therefore, the corporation has the option to access and verify the bid documents of second lowest bidder.

Saeed Ahmed Khan, TCP chairman, told Dawn that since the lowest bidder has time up to 2pm on Monday, as per tender terms and conditions, he has been asked to rectify the defect by that time.

He said the second lowest offer has been at $749 per ton C&F but it is only for 50,000 tons against tender quantity of 200,000 ton.

Responding to a question, Mr Khan said the bank guarantee of the second lowest bidder is genuine, but he could only be given chance once the lowest bidder fails to remove the deficiency within specified time-frame.

The TCP chairman confirmed that the corporation has awarded Sadan General Trading which stood lowest for the import of 50,000 tons of sugar at $585 per ton C&F. The tender opened on Feb 17 was for the import of 200,000 tons.

However, he agreed that in any bidding process there are ‘spoilers’ who normally only participate to sabotage the tendering process for their vested interest.

But Saeed Ahmed Khan was quick to say that the TCP could not deviate from terms and conditions laid down in tender document until and unless the lowest bidder fails to deliver.

Consequently, he said there was no fear with regard to the lowest bidder of Feb 16 bidding because the party has already submitted bid bond worth $350,000 with the TCP and going to give performance guarantee of one million dollar on Monday.

He further said that the Sadan General Trading was ready to give performance guarantee on Saturday, but since the TCP is officially closed, it could not entertain such official dealing on a close day.

Responding to a question, he said it was true that current world sugar prices are much higher, ranging from $706 to $709 per ton Fob, but the lowest bidder must be having some old stocks which could be disposed of at lower price.