WFP STRIVES TO EXPAND ITS BASE OF COMMODITY

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