Vietnam state firm likely to supply rice to PH

Posted at 04/16/14 7:35 AM

MANILA, Philippines - The National Food Authority (NFA) is likely to award the supply contract for 800,000 metric tons (MT) of rice buffer stock for the lean months to Vietnamese state firms as these have offered the lowest prices.

The NFA yesterday concluded the bidding for this year’s buffer stock, receiving offers from six firms out of the nine companies that procured bid documents.

The results of the bidding would be announced next week after post-qualification evaluation and verification of the submitted bids.

NFA spokesman Rex Estoperez said the results of the bidding would be announced next week.

Likely to be awarded to Vietnam Southern Food Corporation (Vinafood 2) are 700,000 MT while 100,000 MT are expected to be awarded to Vietnam Northern Food Corporation (Vinafood 1).

“We conducted an open bidding so we can get the best price, and from the results of the bidding, Vietnam offered the lowest price,” said Estoperez.

Other firms that participated in the bidding were Singapore-based firms Olam International and Roan Agrifactor Corp, Louis Dreyfus Commodities Asia Pte. Ltd., Thailand-based Thai Hua Co. Limited, and Hong Kong-based Singsong HK Ltd.

Olam International and Roan Agrifactor were disqualified from participating in the bidding as these firms could not comply with the delivery period of between May to August as stated in the terms of reference.

Other firms that applied to bid were LG International., Asia Golden Rice and Toepfer International Asia Pte. Ltd.

Vinafood 2 and Vinafood 1 topped the offers of other companies with bids ranging from $436 per MT to $441.25 per MT against the offers of other bidders that ranged from $469.31 per MT 475.68 per MT.

The bid quantity is broken into four lots of 200,000 metric tons (MT) each, although the minimum quantity to be offered per supplier is placed at 100,000 MT.

At an exchange rate of P45 to $1, the per metric ton bidders had to beat the quotation of $477.28 per MT upon delivery to NFA warehouses.

The NFA has allocated P17.18 billion for the importation this year under an open-bidding scheme that allowed all government and private companies to vie for the supply of Manila’s buffer stock requirement.

To be shipped between May to August in four tranches are well-milled white rice at 15 percent brokens. Rice must be shipped in polypropylene bags at 50 kilograms net each.