GOVERNMENT-TO-GOVERNMENT IMPORTATION OF 750,000 MT RICE

THE NATIONAL Food Authority Council approved during a special meeting on September 17, 2015 the awarding of contract for the supply of 750,000 metric tons of long grain white rice 25% brokens to Thailand and Vietnam based on the results of the Government-to-Government Procurement held on September 17, 2015. The importation is intended to beef-up government inventory in preparation for the looming impact of the El Niño phenomenon. Drought due to of El Niño is predicted to intensify beginning October this year and will last until May 2016.

· The reference price set by the Committee on G-to-G Procurement (CGGP) is $426.83 per metric ton.

· Only Thailand and Vietnam offered to supply the rice requirements of the country. Cambodia was also invited but did not participate. The three countries have an existing rice supply agreement with the Philippines.

· Thailand offered 300,000MT @ $430/MT while Vietnam offered 750,000 MT @$431.25/MT which are both higher than the reference price.

In their revised offer, Thailand offered to supply 300,000MT @ $426.83/MT while Vietnam offered to supply 450,000MT @ $426.60/MT.

Thailand agreed to match the offer of Vietnam at $426.60/MT.

· The price offered included the cost of freight-delivered at place (CIF-DAP) in NFA designated warehouses in the country. The delivery of shipment shall be as follows: Ø 125,000MT - not later than November 30, 2015

Ø 125,000MT - not later than December 31, 2015

Ø 175,000MT - not later than January 31, 2016

Ø 175,000MT - not later than February 29, 2016

Ø 150,000MT – not later than March 31, 2016

The G-to-G procurement was witnessed by representatives from the Commission on Audit, Office of the Ombudsman, Bangko Sentral ng Pilipinas, NFA Council, members of the media, etc.