Guatemala: $60 million “Emergency” Purchase

Amid much controversy about the procedures to be followed, the government of Guatemala has issued a tender for the supply of fertilizers through the "emergency purchase" method.

Friday, April 13, 2012

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 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.

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