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OCP wins USD 230 mln fertilizer contract

OCP wins USD 230 mln fertilizer contract

Moroccan fertilizer giant, OCP bagged a 230-million-dollar contract to supply three types of fertilizers to the Ethiopian government, this week.

The Agricultural Business Corporation agreed to buy 750,000 metric tons of NPS, NPSB and NPSZnB fertilizers from OCP after the company listed the winning price for the supply two weeks ago.

The company gave a fair price which led the Ministry of Agriculture & Natural Resource to approve their offer, an Official from the Corporation told The Reporter.

A couple of months ago, the Corporation floated an international tender to purchase 1.3 million tons of fertilizer. The fertilizer was Urea, NPSB, NPS and NPSZnB. The tender attracted close to 11 international fertilizer suppliers.

The Corporation has invited the companies to purchase 550,000 tons of Urea (divided in 11 lots), 500,000 tons of NPSB (divided in 10 lots), 200,000 tons of NPS (1 lot) and 50,000 tons of NPSZnB (1 lot).

Aside from the offers made by OCP, the Corporation decides to retender the Urea component of the bid.

According to officials from the Corporation the price for Urea were found to be very expensive.

The offers have at least 85 dollars increment per ton from last year, said the official.

“It very expensive so we have decided to retender it,” he said.

During the bid opening on September, 2017, Samsung C&T (Singapore) gave a least offer of 314.34 dollars/ton, 315.34 dollars/ton and 316.84 dollars/ton for the Urea supply. This will make the total offer from the company worth around 172.8 million dollars. The Corporation believed that the price offers for Urea including that of Samsung’s is quite high compared to last year’s.

In addition, when it comes to the least offers of NPS, NPSB and NPSZnB, OCP gave a least price of 312.5 dollars/ton, 313.5 dollars/ton and 314.5 dollars/ton. This, in turn, will make the total offer add up to 62.5 million dollars.

For this particular supply, Yara Switzerland gave the second least offer ranged between 316.96 dollars/ton to 319.81 dollars/ton.

For NPSB fertilizer, OCP has also given a winning price of 325.4 dollars/ton, 326.4 dollars/ton and 327.4 dollars/ton. For this particular fertilizer type, a second company from Turkey called ISKENDERUM listed 352.9 dollars/ ton.

In addition, OCP as the only competitor for the supply of 50,000 tons of NPSZnB gave 380.6 dollars/ton, 381.6 dollars/ton and 382.6 dollars for this supply.

The Corporation is expected to sign a contract with OCP soon.

It is to be recalled that the Morocco based fertilizer producers has also supplied 70 percent of last year’s fertilizer purchase by Ethiopian government.

Following the latest purchase, the Corporation will announce another round of purchase for the supply of 200,000 tons of different fertilizers and will also retender the Urea purchase.