Geneva based Agusta Energy wins first bulk procurement tender in Tanzania

BY GEOFFREY NANGAI

AGUSTA Energy based in Geneva yesterday won the hotly contested bid process that will see the company ship the first consignment of petroleum early next year through the bulk procurement system that has been passed.

Agusta energy beat other multi-national companies that included Trafigura PTE Ltd, (TOTSA), Vitol SA and ADDAX Energy SA that had expressed interest in the over 850 bn/- deal import 540,000 metric tonnes of oil.

Speaking shortly after announcing the Geneva based firm winners, the Petroleum Importation Coordinator (PIC) Limited, Board Chairman, said the tender award had been given to the Geneva based company with strict adherence to all the procurement requirements and transparency.

 Mansoor Shanif, while quoting article 164 (2) of the Bulk Procumbent Process Regulation said " A person or firm shall not import petroleum product unless an efficient procurement process,|”.

He said the company had been chosen depending on its low tariff specification adding that PIC would in the mean time have to discuss in detail with the company on the other underlying terms and conditions.

“The tender process has been transparent and we have chosen to offer it to the lowest bidder. Today is a milestone in the history of the country. We expect to see the first ship under the bulk procurement system arrive in the first week of January next year,” he said.

Mansor elaborated that the tender documents submitted by the company indicated that the company would import Diesel, Petrol and Jet oil at a premium rate of $ 56.88, $65.88 and $58.88 per tonne respectively.

The Agusta Energy representative Orlando D’COSTS who was present at the event said his company has the finance muscle to handle the multi- million project.

“My company has enough finance that will help to keep the project moving. Best off all; we have a very good reputation with some of the world’s biggest banks.

“To us money is not a problem. We are looking forward to start the project. We expect our first ship to arrive in early January,” he said.

He said five companies had by yesterday (11.00 am) submitted tender documents for the deal but two of the firms that included Vitol SA and TOTSA were disqualified for not meeting the regulatory requirements.

A total of 25 companies acquired and submitted pre-qualification documents for bulk procurement, later vetted by a PIC committee which dropped out two companies.