Prequalification of Suppliers under Bulk Procurement System

1. Expression of interest shall be advertised and companies meeting the requirements shall be pre-qualified and be invited to bid to supply volumes tendered for.
2. Advertisement for invitation for pre-qualification will be published through:

• Local and International newspapers;
• Emails to past years prequalified suppliers;
• Emails to OMCs;
• Emails to International forums and institutions dealing with petroleum business;
• Emails to individual companies which showed interest to participate in BPS tenders;
• PBPA Website; and
• Tanzanian Embassies

Pre-Qualification Criteria

As should be described in Pre-qualification Expression of Interest document, the following are criteria for bidding entity:

1. The application letter
2. Statement in precise terms explaining applicant’s commitment to;
   • Provide credit of not less than sixty (60) calendar days to purchasers from the first day of delivery date range;
   • Undertake to comply with TBS standards in regards to the specifications of the products;
   • Undertake to deliver the cargoes in vessels that have been approved by TPA; and
   • Perform the contract in line with the terms and conditions stipulated in the Shipping and supply contract and the governing laws of Tanzania.
3. A warrant that there is no actual or threatened litigation that may affect its liability to comply with the performance of the contract under the Bulk Procurement System.
4. Assurance that the company is not insolvent, declared bankrupt by a competent court or be the subject of any winding up process.
5. Valid tax clearance certificate issued by competent authority or as the case shall be a letter from competent Authority that the company has been exempted from paying tax or is operating in a tax free zone.
6. A statement explaining the modality of handling the responsibilities under the shipping and supply contract i.e. office where all operations will be performed. If some of the company obligations will be performed by an offshore office or Affiliate Company, the applicant must provide the address and the nature of activities which will be performed by those offices.
7. For companies wishing to form a joint venture, a joint venture agreement registered in Tanzania. The joint venture agreement should state:
   • Management of the joint venture operations;
   • Rights and responsibilities of parties to the Joint venture agreement;
   • Profit and loss sharing;
   • Financial contribution to the joint venture; and
   • Technical support to the joint venture.
8. Details on source of financing of the obligation under the shipping and supply contract in the event they win the contracts;
9. Company profile containing, among other information, staff competency on international trading of petroleum;
10. The applicant must be a registered legal entity structured for the petroleum supply and trading business, proof of which will be sought from certified copies of the company’s certificate of registration, memorandum/articles of association, tax payer’s registration certificates and business license;
11. International companies must have a gross trading turnover of at least US$ 100,000,000 per year and for local companies must have capitalization or asset base of at least thirty billion (30,000,000,000) Tanzania Shillings, both shall be evidenced by a certified Audited Financial Statements for the past three consecutive years;
12. Proof of payment of pre-qualification processing fees of USD 5,000 for multinational companies and TZS 5,000,000/= for local companies. The fee is payable after every three (3) years from the date of pre-qualification.
13. The applicant must have a minimum experience of three (3) years in international trading of petroleum products with a minimum trading volume of 1,500,000MT for international companies. Local companies must have a minimum of five (5) years’ experience in local marketing business of petroleum products. The aforementioned experience must be proved by any of the two items listed below:
    • Letters from customers or supplier/refineries indicating annual volumes traded;
    • Certified copies of Bill Lading;
    • Certified copies of contract.
14. For local applicants they must not have defaulted to make payment as buyers of refined petroleum products for the period of twelve (12) consecutive months prior to invitation for pre-qualification.
15. Past performance of the contracts with the Agency. In ascertaining the past performance, regard shall be made to the following:
    • The Agency records on the supplier’s performance in the previous tenders;
    • Minutes of the stakeholder’s meetings; and
    • Correspondence from other parties in relation to the supplier’s performance of the contract.

Pre-qualification results

1. A list of pre-qualified suppliers will be released to all applicants and all stakeholders in petroleum industry in Tanzania and will be maintained in the PBPA register;
2. The list of pre-qualified suppliers will be valid up to the 31st December of year of supply; and
3. Upon consultation with EWURA and Ministry responsible for petroleum affairs PBPA might extend the validity of the pre-qualified of suppliers.

Due Diligence for Suppliers

PBPA shall conduct a background check/due diligence of all pre-qualified suppliers and for the companies who are subsequently proven to be unqualified will be removed from the register.

Disqualification of Pre-Qualified Suppliers

The Agency may disqualify a supplier who has been prequalified if it satisfies itself that such supplier has submitted false information that materially influence or intended to influence the Agency’s decision.