Fils Aimé Ignace Saint Fleur, the Director General of the Office for the Monetization of Development Assistance Programs (BMPAD) informs the oil companies that “[…] in the context of the liberalization of the import of petroleum products : Diesel, Gazoline, and Jet, a Stand-by Letter of Credit will be required by potential local suppliers of such products for the value equivalent to the demand expressed by each company, to guarantee payments and minimize potential risks.
Thus, you are asked to take the necessary steps to facilitate the implementation of this new mechanism from the next call for tenders. BMPAD is counting on your customary collaboration to make these products available on the local market at any time and stop any form of breakage. […]”
This new measure that relieves the State of its responsibility for supplying fuels to the private sector, will mainly benefit 3 large companies in Haiti : Dinassa, Total and Sol and does not suit small companies. Too small to respond alone to a tender, insufficiently capitalized they had to regroup before to respond to calls for tender. With this new measure, in addition to regrouping, they are aware that they will find it very difficult to obtain a standby letter of credit from their banks for each call for tenders.
Learn more about the stand-by letter of credit :
The stand-by letter of credit is a bank guarantee with which the importer guarantees its supplier that the bank will replace it if it is in default, provided that the exporter presents the documents requested as proof of the existence of the debt.”
This is just another operation that should be handled by the government.
Instead, like all ofther profit areas, it is passed on to other guys.