The award of a contract to purchase fertilizer for $ 60 million (Q460 million) should be decided on Friday by the Guatemalan Ministry of Agriculture after a long legal process and a heavy dispute over bidding mechanisms.

The competition will feature the five companies that had submitted offers from the beginning: Tigsa, Biocsa, Yara, and Mayafer Disagro, according to an article in elPeriodico.com.gt. The mechanism finally chosen for the tender is purchase by exception. A previous competition was canceled.

"The issue of fertilizer has sparked a battle within the Executive. Sources close to the agency and Congress recognize that there are vested interests and "strong pressure" connected to the contest. There are two versions: the first suggests that the exception process will favor the company Disagro, and the second is that because the purchase will be carried out through a tender, the business could be distributed among five bidders," explains the article.

Source: elperiodico.com.gt

More on this topic

Awards: Fertilizers for $25 million

April 2015

The Guatemalan National Development Fund has awarded to the company Fertilizantes Maya S.A. a contract for the supply of fertilizers for agricultural use.

An offer was also received from the company Tigsa Fertilizantes S.A. in the amount of $30.2 million, but the award was given to the company that submitted the lowest bid, Fertilizantes Maya S.A., worth $25 million.

$41 million Fertilizer Contracts

April 2014

Guatemala's government has awarded two contracts to Disagro for $22 million and Tigsa for $20 million for 1.5 million quintals of fertilizer.

In the process of supply and distribution of fertilizers the rating board of the National Development Fund (FONADES) awarded the security services contract for custody and safekeeping of the product to Serseco on March 27, for $380,000.

Bids for Fertilizer Tender

April 2012

Finally, four companies have submitted bids, with lower prices than the bids submitted in the original tender, which was annulled.

The minister, Efraín Medina, said the lowest price was Q114 million ($14,750,000) and noted that this time the amounts offered were lower than those in the first tender, reported elPeriodico.com.gt.

Progress in Fertilizer Purchase in Guatemala

March 2012

The Appraisal Board at the Ministry of Agriculture has accepted three of the five bids received, and announced that contracts will be awarded on Monday March 30th.

The companies who qualified to take part in the tender for the contract for the purchase of one million 914 thousand bags of fertilizer are Disagro of Guatemala, Tigsa Fertilizantes and Fertilizantes Maya (Mayafert), reported Prensalibre.com.