» Business

Vietnam firms seen to bag Philipine rice supply contracts

Publication Date : 16-04-2014


Two state-owned export companies of Vietnam submitted on Tuesday the lowest bids for contracts to supply the Philippines' National Food Authority with a total of 800,000 metric tonnes of milled rice.

The NFA has a budget of some 17.18 billion pesos, or $381.8 million, for the shipments that must be delivered from May to August.

This means the government is prepared to spend a maximum of 21,477.60 pesos or $477.28, per tonne of rice.

Of the nine groups that expressed interest in the bidding, six submitted offers with five having been accepted.

Based on the bidding terms, the total purchase volume is divided into four lots of 200,000 metric tonnes each of 15-per cent broken long grain white rice.

A bidder can offer a volume of as little as 100,000 metric tons, which means that up to two suppliers can win one lot.

Vietnam Southern Food Corp., or Vinafood 2, offered tenders for all four lots. Its bids for three lots appear to be the lowest at $437.75, $439.25 and $441.25, respectively.

Vietnam Northern Food Corp., or Vinafood 1, pursued two lots only, but its price offers were for four batches of 100,000 metric tonne each.

For one lot, Vinafood 1 offered the first tranche for $436 per tonne and the second for $445 per tonne.

The first price point is lower than Vinafood 2’s tender of $436.50 per tonne for the entire lot.

Based on these numbers, NFA officials cited the likelihood of Vinafood 2 being awarded contracts covering 700,000 metric tonnes, while Vinafood 1 may get a deal for 100,000 metric tonnes.

However, NFA spokesperson Rex Estoperez said in an interview the bidders would still have to go through a post-qualification process “which is mainly authentication” of the documents they submitted.

As in the pre-qualification round, a bidder must pass or fail.

The winners of the bidding “may be available early next week,” Estoperez  said.

Other bidders included Singapore-based Louis Dreyfus Commodities Asia Pte. Ltd., which offered 100,000 metric tons for $469.31 a tonne.
Thai Hua Co. Ltd. offered the same volume at $474.22 a tonne.

Also, Singsong (Hong Kong) Ltd. vied for a contract for 100,000 metric tons at $475.68 a tonne.


Mobile Apps Newsletters ANN on You Tube