1 No. 28 of 2019 SIXTH NATIONAL ASSEMBLY PARLIAMENTARY DEBATES (HANSARD) (UNREVISED) FIRST SESSION TUESDAY 13 AUGUST 2019 2 CONTENTS PAPERS LAID QUESTIONS (Oral) MOTION STATEMENT BY MINISTER BILLS (Public) ANNOUNCEMENT ADJOURNMENT QUESTIONS (Written) 3 THE CABINET (Formed by Hon. Pravind Kumar Jugnauth) Hon. Pravind Kumar Jugnauth Prime Minister, Minister of Home Affairs, External Communications and National Development Unit, Minister of Finance and Economic Development Hon. Ivan Leslie Collendavelloo, GCSK, Deputy Prime Minister, Minister of Energy and Public SC Utilities Hon. Sir Anerood Jugnauth, GCSK, Minister Mentor, Minister of Defence, Minister for KCMG, QC Rodrigues Hon. Mrs Fazila Jeewa-Daureeawoo Vice-Prime Minister, Minister of Local Government and Outer Islands, Minister of Gender Equality, Child Development and Family Welfare Hon. Yogida Sawmynaden Minister of Technology, Communication and Innovation Hon. Nandcoomar Bodha, GCSK Minister of Public Infrastructure and Land Transport, Minister of Foreign Affairs, Regional Integration and International Trade Hon. Mrs Leela Devi Dookun-Luchoomun Minister of Education and Human Resources, Tertiary Education and Scientific Research Hon. Anil Kumarsingh Gayan, SC Minister of Tourism Dr. the Hon. Mohammad Anwar Husnoo Minister of Health and Quality of Life Hon. Prithvirajsing Roopun Minister of Arts and Culture Hon. Marie Joseph Noël Etienne Ghislain Minister of Social Security, National Solidarity, and Sinatambou Environment and Sustainable Development Hon. Mahen Kumar Seeruttun Minister of Agro-Industry and Food Security Hon. Ashit Kumar Gungah Minister of Industry, Commerce and Consumer Protection Hon. Maneesh Gobin Attorney General, Minister of Justice, Human Rights and Institutional Reforms Hon. Jean Christophe Stephan Toussaint Minister of Youth and Sports 4 Hon. Soomilduth Bholah Minister of Business, Enterprise and Cooperatives Hon. Marie Roland Alain Wong Yen Minister of Social Integration and Economic Cheong, MSK Empowerment Hon. Premdut Koonjoo Minister of Ocean Economy, Marine Resources, Fisheries and Shipping Hon. Soodesh Satkam Callichurn Minister of Labour, Industrial Relations, Employment and Training Hon. Purmanund Jhugroo Minister of Housing and Lands Hon. Marie Cyril Eddy Boissézon Minister of Civil Service and Administrative Reforms Hon. Dharmendar Sesungkur Minister of Financial Services and Good Governance 5 PRINCIPAL OFFICERS AND OFFICIALS Madam Speaker Hanoomanjee, Hon. Mrs Santi Bai, GCSK Deputy Speaker Lesjongard, Georges Pierre Deputy Chairperson of Committees Jahangeer, Hon. Ahmad Bashir Clerk of the National Assembly Lotun, Mrs Bibi Safeena Deputy Clerk Ramchurn, Ms Urmeelah Devi Clerk Assistant Gopall, Mr Navin Clerk Assistant Seetul, Ms Darshinee Hansard Editor Jankee, Mrs Chitra Serjeant-at-Arms Pannoo, Mr Vinod 6 MAURITIUS Sixth National Assembly --------------- FIRST SESSION ------------ Debate No. 28 of 2019 Sitting of 13 August 2019 The Assembly met in the Assembly House, Port Louis at 11.30 a.m. The National Anthem was played (Madam Speaker in the Chair) 7 PAPERS LAID The Prime Minister: Madam Speaker, the Papers have been laid on the Table. A. Office of the Speaker The Biennial Report 2017-2019 of the Parliamentary Gender Caucus. B. Ministry of Local Government and Outer Islands Ministry of Gender Equality, Child Development and Family Welfare The District Council of Savanne (Environmental Health) (Amendment) Regulations 2019. (Government Notice No. 132 of 2019) C. Ministry of Industry, Commerce and Consumer Protection (a) The Rodrigues Consumer Protection (Control of Price of Taxable and Non-taxable Goods) (Amendment No. 22) Regulations 2019. (Government Notice No. 130 of 2019) (b) The Rodrigues Consumer Protection (Control of Price of Taxable and Non-taxable Goods) (Amendment No. 23) Regulations 2019. (Government Notice No. 131 of 2019) D. Ministry of Financial Services and Good Governance The Annual Report 2017/2018 of the Competition Commission of Mauritius. 8 ORAL ANSWERS TO QUESTIONS PETROLEUM PRODUCTS – PROCUREMENT AND SUPPLY The Leader of the Opposition (Mr X. L. Duval) (by Private Notice) asked the Minister of Industry, Commerce and Consumer Protection whether, in regard to the supply of petroleum products through Emergency Procurement for an amount of some Rs14 billion, he will, for the benefit of the House, obtain from the State Trading Corporation, information as to the – (a) names of the respective suppliers for Clean Petroleum Products and Dirty Petroleum Products, respectively; (b) period covered by the contracts; (c) relative prices, premium and freight rates for Clean Petroleum Products and Dirty Petroleum Products, respectively, and (d) basis on which negotiations were held with the lowest bidders. Mr Gungah: Madam Speaker, the contract for the supply of Petroleum Products between the State Trading Corporation (STC) and Mangalore Refinery and Petrochemicals Limited (MRPL) expired on 31 July 2019. In this respect, on 25 March 2019, the STC launched a tender for the supply of 915,000 Metric Tons of Clean Petroleum Products (CPP) and 325,000 Metric Tons of Dirty Petroleum Products (DPP) for the period 01 August 2019 to 31 July 2020, on both FOB (Free on Board) and DAP (Delivery at Place) basis. Eleven (11) bidders submitted their offers, out of which nine (9) were for Clean Petroleum Products (CPP) and eight (8) were for Dirty Petroleum Products (DPP). Following the evaluation exercise, the most competitive substantially responsive bids were from Vitol Bahrain E.C. for Clean Petroleum Products and PetroChina International (Singapore) Pte. Ltd for Dirty Petroleum Products. In parallel, on 03 May 2019, the STC also launched tenders for Contract of Affreightment (COA) for the transport of petroleum products should tender for the supply of the products be allocated on a FOB basis. On 22 May 2019, the Board of the STC approved the award for supply of Clean Petroleum Products to Vitol Bahrain E.C. and to PetroChina International (Singapore) Pte. Ltd for Dirty Petroleum Products. 9 However, on 31 May 2019, the Supreme Court, in the case of STC v Betamax Ltd, set aside the arbitration award of the Singapore International Arbitration Centre and provided guidance on the application of the Public Procurement Act (PPA). In the wake of the judgement of the Supreme Court, the STC sought the advice of the State Law Office on the procurement proceedings to be followed by the STC. The SLO advised that the STC has to follow the provisions of the PPA. On 07 June 2019, STC had a meeting with the Central Procurement Board (CPB) to discuss the procedures to be followed under the PPA. A timeline for launching of the tender for supply of petroleum products was defined as per the provisions of the PPA and the process worked out to last over a period of about 6 months. Considering that the contract for procurement of Petroleum Products with MRPL would expire on 31 July 2019, and to avoid any shortage of Petroleum Products, the Board of the STC on 10 June 2019, approved that - a) STC annuls the tender exercises for the supply of clean and dirty petroleum products launched on 25 March 2019 and for Contract of Affreightment for these products launched on 03 May 2019; b) STC carries out an Emergency Procurement for the period 01 August 2019 to 31 January 2020 in accordance with the section 21(3)(b) of the PPA, that is, the Public Procurement Act, which stipulates – “life or the quality of life or environment may be seriously compromised”; c) negotiations be carried out with the lowest substantially responsive bidders in the tender exercise launched on 25 March 2019 which are Vitol Bahrain E.C for Clean Petroleum Products and PetroChina International (Singapore) Pte. Ltd for Dirty Petroleum Products, and d) the Panel for the negotiations be composed of representatives from the Ministry of Industry, Commerce and Consumer Protection, the Ministry of Finance and Economic Development, the Central Procurement Board and the State Trading Corporation. 10 On 17 June 2019, STC attended a meeting at the Central Procurement Board (CPB) to discuss on the process for the Emergency Procurement exercise. The CPB informed that in line with the Provisions of the PPA, they cannot participate in any negotiation exercises. This would tantamount to being judge and party. However, in line with Circular 15 of 2008 issued by PPO, the CPB agreed to assist STC and guide them on the negotiation process. The CPB further requested the STC to prepare a Strategy Paper for the negotiations and to submit same for clearance. Given that MRPL has been the supplier of the STC since 2006, it was proposed that MRPL also be invited to participate in the negotiation process; the CPB had no objection to the proposal as this would enhance competition. Following discussions with the CPB, the Strategy Paper was finalised and approved by the CPB on 21 June 2019. Madam Speaker, with regard to part (a) of the question, I am informed by the STC that the negotiating panel held meetings with Vitol Bahrain E.C. and MRPL for Clean Petroleum Products and with PetroChina International (Singapore) Pte. Ltd and MRPL for Dirty Petroleum Products at the seat of the STC on 25 and 26 June 2019. The negotiation panel recommended that the contract for the supply of Clean Petroleum Products for the 6 months’ period be awarded to Vitol Bahrain E.C. and that the contract for Dirty Petroleum Products be awarded to PetroChina International (Singapore) Pte. Ltd. Madam Speaker, as regards part (b), the contracts