TDB to offer 256 tonnes more at same price
CFCs permit price holds steady at $4,000 per tonne
Reports By Genevieve Cua and Jayaram Menon
THE Trade Development Board’s efforts to rein in prices for chlorofluorocarbons (CFCs) at the third and final tender paid off when the cut-off price was fixed at $4,000 a tonne.
The board In a press statement yesterday said the permit price for the remaining 526 tonnes of CFCs — the final allocation for 1989/90 — was $4,000 per tonne, as in the previous tender.
Those who put in higher bids will be allocated the quantity sought in full, Those who bid at $4,000 will have their requirements pro-rated. Bids below $4,000 were unsuccessful.
But to help companies in need of CFCs, another 256 tonnes of consumption/import quota will be offered at $4,000 a tonne, the board added.
Under the tender system, a permit is needed to buy the ozone-depleting CFCs as part of the government’s attempt to limit the use of CFCs in Singapore.
"It’s quite a relief," said Peter Lim, president of the International Procurement Management Association of Singapore (IPMAS), on hearing the results.
Many association members represent the electronics companies that consume the bulk of CFCs used in Singapore.
Shaken by the four-fold rise in permit prices to $4,000 in the second tender, the association had expressed fears that permit prices might skyrocket to $16,000 a tonne in the final round.
In the third and final tender, the board limited the tendered volume to 50 tonnes, and screened out those who were successful in earlier bids to pre-empt overbidding.
But with only 55 of the 156 tenderers declared successful, Mr. Lim said: "Maybe those people who have more than they need should be encouraged to turn in their permits. It will be helpful if companies with more than what they require could share it with others."
A CFC distributor, who did not wish to be named, said: "Companies have come to us offering to sell us their permits but these are some aerosol companies and the quantity is small."
"In the second round, some small companies did not take up the offers from TDB because they couldn’t afford It," he added.
Successful tenderers will be told next week, and will have two weeks to decide whether to accept the offer. Those unsuccessful have been told to buy from importers and distributors with surplus stocks.
"As the tender for the total 1989/90 CFCs quota has been completed, Importers should release all their stocks to meet users’ requirements," the board statement added.
Mr. Lim said: "I hope with the experience In tendering, Improvements can be made to the system to ensure an equitable distribution."
Source : January 26 1990
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