CARE/BANGLADESH (CARE/B) ADVANCE MAY 2005 CALL

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