10 million tons! In 2020, the bidding process for the **Fertilizer Commercial Reserve Project was launched!

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10 million tons! In 2020, the bidding process for the **Fertilizer Commercial Reserve Project was launched! Author/Source: Date: 2020-08-05 Clicks: 10 On August 3, Guoxin Bidding Co., Ltd., commissioned by the Economic Trade Department of the **Development and Reform Commission and the Economic Construction Department of the Ministry of Finance, held a public domestic bidding process for the 2020 **fertilizer commercial reserve project. Through this public tender, the companies that will be responsible for storing 1.5 million tons of potassium fertilizer and 450,000 tons of fertilizer for disaster relief, as well as 8.05 million tons of fertilizer for spring planting, will be determined. The deadline for submitting bids is 10:00 a.m. on August 11, 2020 (Beijing time). For details, see the tender announcement. 　　The tender announcement states:
Tender content and requirements:
This project will, through an open tender process, select companies to be responsible for storing 1.5 million tons of potash fertilizer and 450,000 tons of fertilizer for disaster relief purposes, as well as 8.05 million tons of fertilizer for spring plowing. Of the potash fertilizer to be stored, at least 80% must be imported fertilizer, while all of the fertilizer intended for spring plowing must be domestically produced. 　　For bidders submitting bids for spring plowing fertilizer reserves, when bidding in Hebei, Jiangsu, Anhui, Jiangxi, Shandong, Henan, Hubei, Hunan, and Sichuan, the proportion of nitrogen fertilizers shall be no less than 40% of the total amount bid by that company in those regions ； When bidding for projects in Heilongjiang, Liaoning, Jilin, and Inner Mongolia, the proportion of nitrogen-based fertilizers shall be no less than 30% of the total amount bid by the enterprise in that region ； When bidding in other provinces, the proportion of compound fertilizers shall not exceed 70% of the total bid amount for that enterprise in its own region. 　　Source of funds: The storage enterprise applies for bank loans on its own, with financial subsidies provided. 　　Requirements for the entities responsible for storage: Fertilizer production and distribution companies (up to 2 companies) can form a consortium to apply for the task of storing fertilizers for spring planting. The storage of potassium fertilizers and emergency relief fertilizers is not entrusted to consortia; instead, a single enterprise is responsible for storing both types of fertilizers. 　　Basic requirements for bidders: 1. Possess the qualifications to produce and operate fertilizers within China, as well as the ability to assume civil liability independently, with normal business operations. 　　2. The bidder’s actual paid-in registered capital for the year 2019 must be no less than 50 million yuan ； In a corporate consortium, the leading enterprise must have a paid-in registered capital of no less than 100 million RMB in 2019, while the participating enterprises must have a paid-in registered capital of no less than 30 million RMB in 2019 ； For enterprises in the Tibet Autonomous Region, Qinghai Province, Gansu Province, and Ningxia Hui Autonomous Region that are tasked with storing reserves for these four provinces and regions, their actual registered capital paid up in 2019 must be no less than 10 million RMB. 　　3. Fertilizer distribution companies had an average annual sales volume of over 300,000 tons (in physical terms; the same applies hereafter) from 2017 to 2019. Fertilizer production companies that possessed a sales network had an average annual output of over 400,000 tons of simple fertilizers or over 800,000 tons of compound fertilizers during the same period. Companies located in the Tibet Autonomous Region, Qinghai Province, Gansu Province, and Ningxia Hui Autonomous Region only needed to meet one-third of the above criteria in order to participate in the bidding processes in these four regions ； The total number of enterprises participating in the consortium must meet the above conditions. 　　4. Enterprises that store potassium fertilizers and emergency relief fertilizers must have a well-developed distribution network in riverine and coastal areas; these enterprises can be state-owned or private trading firms involved in the import of fertilizers (or parent companies that hold absolute control over such state-owned or private trading firms). 　　5. The enterprises responsible for storing fertilizers for spring plowing must have had an average annual sales volume in the target area from 2017 to 2019 that was not less than 1.2 times the volume specified in their bid. 　　6. Fertilizer manufacturers comply with **industrial policy regulations, their products meet **quality standards, and their energy consumption meets **required levels ； The fertilizers purchased by fertilizer distribution companies are either products manufactured by the aforementioned fertilizer producers or products that meet **customs inspection standards. 　　7. Possess warehousing capacity that meets the requirements of reserve volume and regional distribution. 　　8. In carrying out the previous tasks related to the \"Central Disaster Relief Fertilizer Reserve,\" \"Commercial Fertilizer Reserve during Off-Seasons,\" \"Potash Fertilizer Reserve,\" or other provincial-level fertilizer reserve programs, the entity has not been subject to any sanctions by relevant authorities for fraud or similar misconduct. 　　9. The bank has a good reputation. 　　Storage period for responsibilities 　For this tender, the storage period for potassium fertilizer and fertilizer for disaster relief purposes is 4 years (2021/2022, 2022/2023, 2023/2024, 2024/2025), while the storage period for fertilizer intended for spring plowing is 2 years (2020/2021, 2021/2022). 　　Annual storage period: The annual storage period for potassium fertilizer is from May 1 of the current year to April 30 of the following year. The annual storage period for fertilizer intended for disaster relief is from May 1 of the current year to October 31 of the same year. As for the fertilizer reserved for spring plowing, the storing company can choose any six consecutive months between September 1 of the current year and April 30 of the following year. 　　Single lot size: A joint tender is conducted by adding together the reserves of potash fertilizer and fertilizer for disaster relief; the size of each individual lot is 100,000 tons of potash fertilizer and 30,000 tons of fertilizer for disaster relief, for a total of 15 lots. In the Tibet Autonomous Region, Qinghai Province, Gansu Province, and Ningxia Hui Autonomous Region, the reserve amount of fertilizer for spring plowing per location does not exceed 20,000 tons; in other regions, this amount is generally 50,000 tons per location. In total, there are 170 such locations.