US embassy cable - 05DHAKA1550

UNCLAS DHAKA 001550 
 
SIPDIS 
 
AIDAC 
 
DCHA/FFP FOR MATTHEW NIMS, P.E.BALAKRISHNAN, JUDY 
GROOMS, AND DCHA/POD JEANETTE LEE 
 
E.O. 12958: N/A 
TAGS: EAID, BG 
SUBJECT: CARE/BANGLADESH (CARE/B) ADVANCE MAY 2005 CALL 
FORWARD OF 3,000 MT TITLE II REFINED SOYBEAN OIL FOR 
THE FY 2005-2009 DAP 
 
REF. (A) CARE/B ANNUAL ESTIMATE OF REQUIREMENT 
 
-        DATED 06/02/2004 
-    (B) CARE TRANSFER AUTRIZATION AWARD 
-        NO. FFP-A-00-04-000079-00 
-    (C) CARE LETTER, MARCH 09, 2005 
-    (D) CARE BELLMON ANALYSIS UPDATE, MARCH 15, 2005 
-    (E) 2004 DHAKA 01818 
-    (F) 1998 STATE 86836 
 
1.  The purpose of this cable is to provide Mission 
concurrence with CARE/B advance May 2005 call forward 
of 3,000 MT of 208-liter drum refined soybean vegetable 
oil for arrival in August/September, 2005 under the 
SHOUHARDO program. 
 
2.  The call forward amount, 3,000 MT, is the first 
tranche of the 10,000 MT of refined soybean oil 
approved for monetization through private channels for 
the FY 2005 program.  This call forward request is in 
accordance with the CARE/B and BDG Host Country Food 
for Peace Agreement. 
 
3.  The total call forward amount (3,000 MT) will be 
monetized through open bidding procedures. 
Specifications for this oil are provided below: 
 
..Grade/Quality:  Refined Soybean Oil 
..Packing:  206-liter Drum 
..Color: 20 yellow/2.0 red maximum 
..Free Fatty Acid: 0.05% maximum 
..Stability: 12 hours minimum 
..Moisture and Volatile Matter: 0.06% maximum 
..Taste/Odor: Bland and free from foreign 
..undesirable odors 
 
4.  CARE/B has invited tenders beginning March 13, 
2005, with April 6, 2005, the last date for receipt of 
bids. This is the first time that Title II DAP 
commodities are being monetized through open bidding 
procedures.  CARE/B has followed standard bidding 
procedures for the sale of the refined vegetable oil. 
CARE/B anticipates a competitive price from the 
monetization. 
 
5.  The Mission's Food Security and Disaster Management 
Team concurs with the Bellmon analysis update (Ref. D) 
The analysis is based on the instructions provided in 
Ref. F on the Bellmon certification requirements for 
P.L. 480 Title II activities.  Based on the Bellmon 
analysis, USAID/Bangladesh has determined that the 
importation of the proposed call forward level of 3,000 
MT of refined soybean oil in Bangladesh, will not 
result in a substantial disincentive to or interference 
with domestic production or marketing of refined 
soybean oil in Bangladesh. 
 
The successful bidder(s) will have responsibility for 
storage and distribution of the refined soybean oil. 
CARE has confirmed to USAID that all eligible bidders 
have been prequalified.  As part of the 
prequalification process, eligible bidders must 
demonstrate to the satisfaction of CARE that they have 
adequate storage and handling facilities to prevent the 
spoilage or wastage of the oil.  Accordingly, 
USAID/Bangladesh has determined that adequate storage 
facilities will be available to prevent the spoilage or 
wastage of the oil.  The call forward level of 3,000 
MT, expected in August/September, 2005, will cause no 
substantial disincentive and present no storage 
problems. 
 
The Mission Director has determined that the shipment 
of 3,000 MT of Title II refined soybean oil is in 
compliance with the Bellmon amendment requirements for 
P.L. 480 Title II activities (Ref. F). 
 
6.  Mission concurs with CARE/B's advance May 2005 call 
forward for shipment of 3,000 MT of 208-liter drum 
refined soybean oil for August/September, 2005 in- 
country arrival. 
 
7.  Mission requests DCHA/FFP approval of the full 
CARE/B call forward level, to arrive in-country in 
August/September, 2005.  THOMAS