US$50M FERTILISER DEAL CONFIRMED
…. Alpha now paid for first consignment
By AARON CHIYANZO
ALPHA Commodities and Nitrogen Chemicals of Zambia (NCZ) were sourced for the US$50 million contract to supply fertiliser to Southern Province and some parts of Western Province because they performed impressively in the last farming service, Ministry of Agriculture Permanent Secretary Green Mbozi has said.
He said Alpha Commodities had now been paid for the first invoice it presented to the ministry after delivering the first consignment of fertiliser.
He said in an interview that the contract for Alpha Commodities was signed on November 12, 2021.
Mr Mbozi said according to the agreement, the company had to source its own money and that payments were only done after delivery.
He said Alpha Commodities was only expected to invoice the ministry after supplying a specified quantity of fertiliser.
Mr Mbozi said Alpha had been contracted to supply 17, 727 metric tonnes of Urea and 19, 300 metric tonnes of D Compound.
He explained that Alpha Commodities and NCZ were the only companies which supplied fertiliser to Southern Province in line with their contracts hence being automatically awarded new contracts.
“Alpha and NCZ were given the contracts because they had performed 100 percent in their previous contracts. They were the only two companies that have finished,” he said.
And Mr Mbozi said Alpha Commodities had some challenges supplying fertiliser which had since been resolved after receiving the first payment.
Southern province minister, Cornelius Mweetwa said during a press briefing that Alpha Commodities and NCZ had been picked because their performance had been outstanding over the years.