US embassy cable - 03ROME5704

UNCLAS ROME 005704 
 
SIPDIS 
 
 
FROM U.S. MISSION IN ROME 
 
STATE FOR IO/EDA KOTOK 
USAID FOR DCHA/FFP LANDIS, DRUMMOND, THOMPSON 
    USDA FOR CHAMBLISS, TILSWORTH, LSCHATZ 
BRUSSELS FOR USAID/LERNER 
USMISSION GENEVA FOR USAID/KYLOH 
USUN FOR TAMLYN 
 
E.O. 12958:  N/A 
TAGS: EAID, EAGR, UN, WFP 
SUBJECT: WFP STRIVES TO EXPAND ITS BASE OF COMMODITY 
SUPPLIERS 
 
REF: WFP LETTER DATED 2 DECEMBER 2003 TO USDA UNDER 
SECRETARY PENN 
 
SIPDIS 
 
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SUMMARY 
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1. THE PROCUREMENT OF FOOD COMMODITIES BY THE WORLD 
FOOD PROGRAM (WFP) ROSE TO UNPRECEDENTED LEVELS IN 
2003.  FOR THE 6-MONTH PERIOD ENDING IN JUNE 2003, WFP 
PURCHASED COMMODITIES COSTING MORE THAN US DOLLARS 
(USD) 410 MILLION, EQUIVALENT TO ABOUT 1.8 MILLION 
METRIC TONS.  AS MARKET SUPPLIERS OF PROCESSED FOODS 
AND CEREALS ARE EXPRESSING INTEREST IN SUPPLYING 
COMMODITIES FOR WFP PROJECTS, WFP'S PROCUREMENT SYSTEM 
IS ACCOMMODATING SUCH INTEREST.  END SUMMARY. 
 
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PROCUREMENT BACKGROUND AND DEVELOPMENTS 
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    2. FOLLOWING REFERENCED LETTER, US MISSION PROGRAM 
OFFICER PHILIP LAMADE MET WITH WFP PROCUREMENT CHIEF, 
VLADIMIRO GAROFALO ON DECEMBER 19, 2003 TO DISCUSS 
DEVELOPMENTS IN WFP'S PROCUREMENT PROCESS CONSIDERING 
US COMMODITY VENDOR INTEREST IN DOING BUSINESS WITH 
WFP.  SEPTEL DESCRIBES PROCEDURAL GLITCHES RELATING 
SPECIFICALLY TO FOOD PROCUREMENTS FOR IRAQ. 
 
3. IN 2003, WFP'S FOOD ASSISTANCE IN IRAQ, TOGETHER 
WITH ITS OTHER OPERATIONS AROUND THE GLOBE, REACHED 
UNPRECEDENTED LEVELS.  FOR THE 6-MONTH PERIOD ENDING IN 
JUNE 2003, WFP PURCHASED COMMODITIES IN 71 COUNTRIES, 
INCLUDING MORE THAN 204,000 METRIC TONS FROM NORTH 
AMERICA.  THESE PURCHASED COMMODITIES ARE IN ADDITION 
TO THE FOOD AID COMMODITIES PROVIDED "IN-KIND" BY 
SEVERAL DONOR COUNTRIES, INCLUDING THE US. 
 
4. WFP'S GUIDING PRINCIPLES WITH RESPECT TO FOOD 
PROCUREMENT ARE TO ENSURE APPROPRIATE COMMODITIES ARE 
AVAILABLE TO WFP BENEFICIARIES IN A TIMELY AND COST 
EFFECTIVE MANNER.  ABSENT EXPLICIT DONOR GUIDANCE OR 
BENEFICIARY PREFERENCE, DESCRIPTIVE SPECIFICATIONS 
DESIGNED TO MAXIMIZE COMPETITION ARE USED TO PURCHASE 
COMMODITIES. 
 
5. WITH RESPECT TO IRAQ, WFP INFORMED US MISSION 
PROGRAM OFFICER THAT THE SPECIFICATIONS FOR WHEAT, 
VEGETABLE OIL, INFANT FORMULA, AND RICE ORIGINATE WITH 
THE IRAQI MINSTER OF TRADE.  WFP SOLICITATIONS FOR THE 
90-DAY BUFFER STOCK WILL BE OPEN FOR BIDDERS DEEMED 
CAPABLE OF MEETING THE QUALITY, SANITARY, AND PHYTO- 
    SANITARY REQUIREMENTS OF THE RECIPIENT UNLESS THE 
MINISTRY OR COALITION PROVISIONAL AUTHORITY DETERMINE 
OTHERWISE.  AT A VALUE OF APPROXIMATELY US DOLLARS 
(USD) 983 MILLION, THE SOLICITATIONS ARE EXPECTED TO 
GENERATE SIGNIFICANT INTEREST AMONG COMMODITY SUPPLIERS 
WORLDWIDE. 
 
6. AT PRESENT, WFP ENCOURAGES SUPPLIERS TO COMMUNICATE 
ABOUT PROCUREMENT ISSUES BY EMAIL, PROCUREMENT@WFP.ORG. 
IN THE EARLY PART OF 2004, WFP EXPECTS TO PROVIDE 
PROCUREMENT INFORMATION ON ITS WEBSITE WITH AN OVERVIEW 
OF ITS WORLDWIDE PROCUREMENT ACTIVITIES, HOW TO DO 
BUSINESS WITH WFP AND REGISTRATION/APPLICATION FORMS TO 
BE REGISTERED AS A WFP SUPPLIER. 
 
HALL 
 
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	2003ROME05704 - Classification: UNCLASSIFIED