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Midagri cancels purchase of urea due to irregularities

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After the Comptroller General of the Republic reported serious deficiencies in the acquisition process of 73,000 tons of urea, which was in charge of the Agro Rural entity, the head of the Ministry of Agrarian Development and Irrigation (Midagri), Andres Alencastrereported that the observations of the controlling agency will be taken into account and that the purchase will be nullified and another call will be made.

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The evaluation committee of Agro Rural awarded the good pro to the offer presented by the Brazilian company MF Fertilizers, although it was higher in value than the one proposed by the US company Global Investments Group (GIG). The former was quoted at US$760 per ton, while the latter at US$650 per ton.

Therefore, when choosing the Brazilian proposal, Agro Rural agreed to pay US$8 million more expensive the fertilizer that farmers urgently need.

To disqualify GIG’s offer, the evaluation committee questioned that this company presented ISO certificates in English, but accepted documentation in Portuguese from the Brazilian company MF Fertilizadores, the Comptroller detected, which suggests that there was favoritism.

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For me, the main thing is transparency and that the technical characteristics of the call (of the tender) are respected”, explained Minister Alencastre. “We saw that the price, the technical quality and the delivery time (of the fertilizers) were not being met. And those three things were not being fulfilled,” he added.

Indeed, as the Comptroller indicated, the Brazilian company was going to deliver the urea in two parts and over a long period of time, while the supplier GIG would supply the product in a single block and over a shorter period of time. But the evaluation committee preferred the Brazilian offer.

We are going to declare null (the purchase process). And we are going to recognize the importance of what the Comptroller’s Office has said, we will take measures to annul the summons, put aside those responsible (for the irregularities) until the investigation is finished with all the rigor that we are going to give it, and we are going to to call another tender”, Minister Andrés Alencastre said last night at RRP.

An observation of the Comptroller is that the winning company, MF Fertilizers, did not include the minimum percentage of granulometry of the product, a mandatory data required in the technical specifications of the contest, which, if not fulfilled, would put the quality of the product at risk.

From this assertion it can be deduced that the evaluation committee accommodated the entire process so that the Brazilian company MF Fertilizadores obtained the approval of its proposal, which represented a payment of US$ 55,882,040 for the ureawhile for the North American US$47,793,850, this is US$8 million less.

Therefore, the Comptroller warned that there is a risk that the urea will not arrive in time for this year’s agricultural campaign, the main reason for the acquisition of the product.

In addition, Minister Alencastre reported that MF Fertilizers had problems obtaining a letter of guarantee, a fundamental instrument to guarantee compliance with the contract.

“Once the problem of determining the responsibility of the technical director of Rural Agriculture for the entire process, then we will open a new call in the most imminent period (…), so that in 30 days we will have the fertilizers at the ports of Salaverry, Matarani and Callao”, said Alencastre.


The committee. It is chaired by Leonidas Oscco Sihui and integrated by Juan Guerrero Ochoa, Daniel Moscoso Vargas, Catherine Navarro Acosta and Carlos Ortiz Lluquín.

O’clock. The five awarded 100 points to a Brazilian company when it did not meet the requirements.

Source: Larepublica

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