Gwadar - A Jewel in the Crown

[Neo]

Desalination plant for Gwadar to cost Rs700m

ISLAMABAD, Dec 26: The federal government is urgently providing special Rs700 million funding to Balochistan to help meet 15-year water demand of the Gwadar Industrial Estate (GIE) through the installation of a foreign assembled desalination plant.

According to official sources, several suppliers of bigger size desalination plants have been contacted to provide two million gallons per day (mgd) desalination plant for GIE.

There are several suppliers of desalination plant, each having their proprietary system with different price tag. The objective would be to get a fully foreign assembled plant with sufficient warrantee from a reliable and experienced supplier, who can also guarantee ready supply of spare parts and can promptly deal with emergencies.

The cost of two - train plant with accessories and allied civil, electrical and mechanical works, including departmental charges contingencies, and consultancy, is estimated as Rs700 million.

The future demand of water supply will be met partly by recycling of waste water (irrigation and industrial cooling) and partly by the desalination plant. At present there is no water resource available in the area.

The Balochistan government has provided 3,000 acres of land through two separate allotment letters, out of which 20 acres land will be made available free of cost through the Gwadar Industrial Estate to set up water desalination plant, intake work, storage tanks and other facilities.

The total cost of water supply from the plant (including depreciation) will be Rs0.25 per gallon against the cost of water supplied by tankers at Rs0.76 per gallon.

The total saving on full production of two million gallons will be Rs219 million per annum. However, the decision to install plant is the need based and not return based.

As the actual use of water in the industrial estate in the initial stages of development will be small, the water can be sold to their users on market rates, especially to the industrial and commercial development planned in the vicinity of the estate by the private sector.

There will be approximately 2,000 industrial units in the Gwadar Industrial Estate providing employment to 30,000 workers. Most of the production will be export-oriented and will bring foreign exchange to the country.

The project will be implemented by appointment of a consortium of consultants.

The development of infrastructure is the top priority of the government of Balochistan. The most basic requirements being roads, water supply, electrification and sewerage system.

The demand of water largely depends on the type of industries to be installed there. Whereas chemical and textile industries may have a large water demand, some value-added garments and electronics will require very little water.

On an average demand of 1,000 gallons per acre per day, the estimated water demand would be about 2.5 million gallons per day (mgd) during the year 2008, which will increase at 10 per cent per annum at an average. The requirements of irrigation of road-side plantation and green areas will be largely met from the recirculation of treated sewerage effluent.

The underground water in Gwadar is extremely deficient both in terms of quantity and quality. The only source of surface water that can be used for GIE is Saear Dam located some 24 km away. The cost of transmission of water over 24 km distance and filtration will be substantially high, roughly estimated at Rs250 - 300 million.

However, due to irregular and scanty rainfall in the area, surface water sources such as the dam, which wholly depend on the rainfall, cannot be relied upon as in times of draughts (which are not uncommon), the industrial production will greatly suffer. It has been decided that due to proximity with sea, the most reliable source of water supply for the GIE would be desalination of sea water.

http://www.dawn.com/2006/12/27/ebr2.htm

 

[Neo]

Gwadar Industrial Estate in last stages of completion

ISLAMABAD (January 04 2007): The infrastructure development activities in Gwadar Industrial Estate (GIE) has entered in last stage of completion as electricity and water facilities would be provided within a period of next two months.

Project Director Gwadar Industrial Estate, Maula Bakhsh Magsi Tuesday told PTV that 24 mw Grid station would start functioning in February next while desalination plant for providing 200,000 gallon water would be ready by March 2007. The spacious road network connecting GIE with rest of the world has already been completed, he said.

Around 12,500 small and mediocre industrial units would be established on 1,000 acre of land in the GIE in the first phase. As many as 600 residential buildings would also be constructed there, he said. Likewise, numerous commercial buildings like offices, business centres were also being constructed in GIE.Situated around 40 km from the main city, the biggest industrial estate of Balochistan would provide employment opportunities to numerous locals, he said.

Currently spread over 1000 acres the industrial estate could be extended upto 3,000 acres to accommodate more and more investors as several industrialists have shown their willingness to establish pharmaceutical units, refineries and textile there, he said.

http://www.brecorder.com/index.php?id=513600&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Friday, January 05, 2007

Gwadar deep seaport to generate two million jobs

ISLAMABAD: The Gwadar Deep Seaport, which will become operational in March, is likely to generate around two million new jobs in next eight to ten years.

This was stated by Secretary Planning & Development Balochistan Government Sohail Qadeer while speaking to the state television on Thursday.

He further said that the future business hub deep seaport would provide cheapest trade route to ships. The work on the development projects at cost of over Rs 25 billion has been expedited in Gwadar to transform it into a modern and developed city equipped with all amenities.

The construction of 350-bed hospital costing Rs 550 million, 250-acre sports complex, central park and small recreational parks will be completed in next five years, he said.

The water purification plant to provide 35 million gallon clean water to people will start functioning soon.

The 950km rail track will be built to link Gwadar port with rest of the country for which a survey is being done.

He said 950km motorway would also be constructed to facilitate port users. Of this 190km motorway will be completed by end current year, and remaining portion ready in stipulated period.

http://www.dailytimes.com.pk/default.asp?page=2007\01\05\story_5-1-2007_pg5_2

 

[Neo]

15, 2007 Monday Zilhaj 24, 1427

Gwadar and oil politics

By Syed Fazl-e-Haider

AFTER selection of Port of Singapore Authority International (PSAI) as operator for the Gwadar port, the deep-sea port in Gwadar is likely to be operational in next two months.

The Gwadar port, and future plans of cross-national oil pipelines traversing the state would further enhance the region’s strategic value. Gwadar in southern Balochistan would be the terminus of gas pipelines from CARs including multibillion dollar pipelines reaching either from Daulatabad’s fields in Turkmenistan, South Pars fields in Iran or from Qatar.

The developments in the surrounding region of Gwadar like the unrest in Balochistan, America’s virtual control of Afghanistan, the emerging role of Shanghai Cooperation Organization (SCO), big powers’ quest for energy security are all indicative of the ‘oil politics’ brewing up in the region..

The SCO is planning to form an "energy working group" that would bring together experts from member states to consider regional gas and oil pipelines, hydropower projects and other ventures. Gwadar on the confluence of South Asia, West Asia and Central Asia can provide a strategic base to China for expanding her stakes.

China needs Gwadar port facilities for future oil and gas imports. While there is a suggestion in Pakistan that Gwadar should be declared a free oil port, Beijing is reportedly negotiating with Islamabad for around five oil and gas pipelines from Central Asian Republics (CARs).

China has shown interest in a trans-Himalayan pipeline to carry the Middle Eastern crude to western China. It would allow Beijing to reduce the portion of its oil shipped through the narrow and unsafe strait of Malacca carrying up to 80pc of its oil imports. The proposed pipeline would link Gwadar port with China's remote western regions, and it would be partly financed by Beijing.

The Chinese oil companies are also in talks with Pakistan about construction of a refinery at the Gwadar port . Islamabad is reportedly considering a raft of incentives from free land for refinery construction, to allowing unlimited duty-free import of crude for processing, sales tax exemption for refined product exports and infrastructure.

It wants to build a refinery and petrochemical complex with an initial 10m tons per year (200,000bpd) capacity, later expanding to 21 million tons. The route over the Himalayas would be an expensive and challenging engineering feat, and once the oil reached China it would likely have to be shipped thousands of kilometres further east to coastal areas, where most energy demand is centred. The pipeline would go in tandem with the Karakoram Highway.

For being strategically located outside the sensitive area of the Strait of Hormuz, the Gwadar port could play an important role in future containerised trade in Asia. The large crude containers of up to 0.5 million tons dead weight form a crucial part of the international oil movement. For every one million barrels daily outlet capacity at Gwadar, Pakistan could possibly net over a third of a billion dollars a year in revenues besides other indirect economic benefits.

China’s stake in Gwadar is causing much discomfort among regional players of geo-politics. Her involvement in the Gwadar port project has also caused suspicions in the minds of strategic thinkers in the Pentagon. The US strategy of advancing into the Central Asia and the Gulf was mainly aimed at pre-empting China from the Central Asia and the Gulf.

The proposed TAP gas pipeline would involve the construction of a pipeline about 1,700 kilometres up to Gwadar. From Gwadar, this gas would then go onto the world markets. Pakistan and India are currently involved in talks with Iran to get Iranian gas by building a gas pipeline from Iran to India via Pakistan.

http://www.dawn.com/2007/01/15/ebr13.htm

 

[Neo]

Friday, January 19, 2007

Musharraf will inaugurate Gwadar Port on March 23

By Zulfiqar Ghuman

ISLAMABAD: Senator Babar Khan Ghauri told the Senate on Thursday that Gwadar Port was almost complete and President General Pervez Musharraf would inaugurate it on March 23.

“The Gwadar Port will usher in a new era of prosperity in Balochistan,” Ghauri said while answering questions during the Senate proceedings. He said that the federal government had launched several major projects in Balochistan to bring it at par with other provinces. Ghauri said that the government was also providing jobs to Baloch youths to remove the sense of deprivation among the people of the province.

The PML’s Pari Gul Agha joined her opposition colleagues from Balochistan in their token walkout against what they said was the federal government’s discriminatory behaviour towards their province. They were protesting over the fact that there was not a single employee from Balochistan in the Ministry of Labour, Manpower and Overseas Pakistanis among the 84 sanctioned posts of the Overseas Pakistanis Division in BPS-1 to 15. They criticised Labour and Overseas Pakistanis Minister Ghulam Sarwar Khan for saying that this practice was being followed since 1979.

However, Khan said that there were five employees from Balochistan in the 353 sanctioned posts of Grade-1 to 15 in the Overseas Pakistanis Foundation (OPF), of which 91 posts were still vacant. “The ministry is following the quota. The cabinet has increased Balochistan’s quota from 3.5 to 6 percent,” he said.

“We want our rights and due share in our resources, not special job quotas. We know the situation will remain the same and the people of Balochistan will continue to be ignored in jobs,” said senators Raza Muhammad Raza and Kamran Murtaza before they walked out from the session.

Federal Communications Minister Shamim Siddiqui was caught on the back foot when Senator Dr Said asked him about the location of Mughalkot during his briefing on the Dera Ismail Khan-Mughalkot section of the national highway. Senator Raza accused Siddiqui of misleading the house and all the Baloch and NWFP senators irrespective of their party affiliation supported Raza’s stance. “The government gives the deadline of December every year but the situation is the same for the last eight years,” he said.

Chairman Mohammadmain Soomro tried to pacify Raza, but he ignored Soomro’s repeated requests and continued speaking. Soomro agreed to arrange a trip for the senators to inspect the situation on the ground.

http://www.dailytimes.com.pk/default.asp?page=2007\01\19\story_19-1-2007_pg7_3

 

[Neo]

PSA to invest $550 million to run Gwadar port

ISLAMABAD (January 21 2007): The Gwadar Port Implementation Authority (GPIA) and the Port of Singapore Authority (PSA) have finalised terms of the Concession Agreement under which PSA will invest $550 million in five years to make the port functional and expand its infrastructure.

The government in December 2006 selected SPA out of four finalist international seaport operators to run the strategic Gwadar deep seaport. Official sources told Business Recorder here on Saturday that the two sides have agreed on 17 terms of the agreement in just 2 days of the negotiations.

The PSA negotiating team has expressed complete satisfaction over the co-operative manner and cordial atmosphere in which parleys were held. They said that terms of the concession agreement related to the establishment of Free Trade Zone, waiver from duty for 20 years, development of infrastructure, SPA's right of tariff, land acquisition, sharing of profit etc.

They said that prior to signing the Concession Agreement, Prime Minister Shaukat Aziz would on Tuesday preside over a meeting of the Gwadar Port Policy Board, which will also be attended by ten federal ministers to approve the agreement. Sources said that SPA would make the port functional by 23rd March 2007 when President Musharraf inaugurates the port with arrival of a merchant ship.

They said that SPA would run the port on corporate structure with three companies ie Marine Security Co, Business Co and Business Development Co while GPIA will act as catalyst for these activities. They said that the SPA had been elected because of its international standing, sound financial position with a vibrant cluster of maritime activities and technical and management skills.

They said that Singapore merchant fleet is the largest in Asia and fourth biggest in the world and spearheads attractive programmes for maritime industry. It is noted for its wide range of maritime services, including towage, heavy lift services, offshore support, salvage work, freshwater supply, crew change, ship supplies and slop disposal.

http://www.brecorder.com/index.php?id=519727&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Gwadar port handing over to SPA approved

ISLAMABAD (January 24 2007): The government on Tuesday approved the handing over of the multi-billion dollars Gwadar port operations to Singapore Port Authority (SPA).

The approval was given by Prime Minister Shaukat Aziz while at a meeting of Policy Board on development of Gwadar port following the recommendations of Gwadar Port Implementation Authority (GPIA) and a special committee constituted to negotiate the agreement for operations of the port.

Balochistan Chief Minister Muhammad Yousaf, Defence Minister Sikandar Iqbal, Ports and Shipping Minister Babar Ghauri, Industries Minister Jehangir Tareen, Petroleum and Natural Resources Minister Amanullah Jadoon, Advisor to Prime Minister on Finance Dr Salman Shah and other senior officials attended the meeting.

The Prime Minister also gave approval to the master plan and business strategy to develop Gwadar as a port and industrial city. The meeting was given detailed briefing by Secretary, Ports and Shipping, Naheed Haider, who said that Gwadar port would be operationalised by the end of next March.

Furthermore, the meeting was informed that SPA, under the agreement, would invest $550 million for improvement of Gwadar Port, besides building additional berths. The Prime Minister said that Gwadar has the potential to become a regional maritime hub because of its geo-strategic location.

Gwadar port, he said, would emerge as national gateway and it would be a major port of the region to cater the needs of Pakistan and Central Asian States. He said that the 14.5 metres deep draft of the port would be able to attract up to 'Fifth Generation' ships, including Panamax and mother vessels. In addition to the location of Gwadar and the depth of the channel, low operations cost would provide competitive advantage to the Gwadar Port, he added.

For many reasons, the inauguration of the country's biggest seaport, that lies at the heart of President General Pervez Musharraf's vision of prosperity, has been rescheduled.

The Prime Minister said that the government had fulfilled another commitment with the people of Balochistan by completing the Gwadar port. The operationalisation of Gwadar port would usher in a new era of development and prosperity for the people of Balochistan, he remarked, and added that it would generate economic activity and a significant number of jobs.

He said he believed that free zones, which would be set up along the port, would contribute to the harnessing of Balochistan's potential in natural resources and development of heavy and large-scale industries, petrochemicals and manufacturing.

The Singapore Port Authority has vast experience in handling big ports, world-wide, and is fully capable to get good business for Pakistan by making the Gwadar port an attraction for big shipping lines.

The multi-billion dollars project is seen as a catalyst to give boost to the country's economy and it would serve as a centre for different corridors to help Pakistan meet its growing demand in various key areas and provide the shortest and viable route to the entire region for supply of energy and quick transportation of goods.

http://www.brecorder.com/index.php?id=520582&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

ECC announces concessions in duties and taxes for Gwadar

ISLAMABAD: The Economic Coordination Committee (ECC) on Thursday announced several concessions in central, provincial and local taxes required to implement the operation of Gwadar Port

The Economic Coordination Committee (ECC), which met here today with Prime Minister Shaukat Aziz in the chair has also approved long-term automobile policy of the country

Under the policy, the tariff on localised parts of completely knocked down (CKD) cars would be reduced from 50 per cent to 45 per cent and on non-localised parts from 35 per cent to 30 per cent in five years. On CBU (completely built unit) cars up to 1500cc, the existing tariff of 50 per cent would continue for five years.

The long-term automobile policy has been made after developing consensus among all stakeholders. According to the policy, the tariff on cars from 1500cc to 1800cc would be reduced from 65 per cent to 60 per cent in three years up to 2009-10 and it would continue by 2011-12. For cars exceeding 1800c, the tariff would be reduced from 75 per cent to 70 per cent by 2009-10 and it would continue till 2011-12.

The meeting has also announced tax-holiday for 40 years on goods imported to facilitate Gwadar Port and 20 years exemption on corporate income tax for the port.

State-run Sui Southern Gas Co.Ltd. (SSGC) has gained government approval to seek bids to build and to supply Pakistan's first liquefied natural gas (LNG) terminal, a government official.

"The ECC has allowed Sui Southern to go ahead with the project and issue a tender," said Ashfaque Hasan Khan, an adviser at the Finance Ministry.

"It will be an integrated project with one company building the plant as well as supplying LNG," Khan told media.

"The first phase of the project is expected to provide 3.5million tonnes of LNG per annum in 2010 and 2011," Khan said.

He said SSGC will be allowed to expand the project in a second phase, under which it could bring in an additional 3.5million tonnes of LNG a year by 2012 and 2013.

SSGC has already short-listed international companies, including Persian LNG, BP Plc , Royal Dutch Shell, ENI and several others for the project. Dutch bank ABN AMRO is the financial adviser for the project.

http://www.thenews.com.pk/updates.asp#17189

 

[Neo]

February 02, 2007

40-year tax relief for Gwadar port operators

By Khaleeq Kiani

ISLAMABAD, Feb 1: The Economic Coordination Committee (ECC) of the cabinet on Thursday granted 40-year tax exemptions to the proposed operators of Gwadar port, making it a virtual tax-free port to the extent of its development and operations.

The ECC, which met here on Thursday under Prime Minister Shaukat Aziz, also approved a five-year automobile policy, sale of 1,423 acres land of Pakistan Steel Mills to industrial sector, import of liquefied natural gas (LNG) and gas diversion from KESC to Wapda.

Dr Ashfaq Hassan Khan, economic adviser to the finance ministry, told a news briefing that the tax concessions were granted to Gwadar Port operators i.e. the Port of Singapore Authority (PSA). The concessions had been approved by the prime minister on January 23.

He said the PSA would invest about $550 million in five to 10 years under the concession agreement while the government would provide them incentives and facilities. The agreement also entails ministerial authority over the operators to fix port fees to attract shipping lines.

He said the list of tax exemptions was long. Some of the major tax incentives included complete exemption from corporate income tax for 20 years, duty exemption on import of material and equipment for construction and operations of Gwadar Power and Development Free Economic Zone for 40 years and duty exemption for shipping, bunker oil for Gwadar port for 40 years, he said, adding that the port operators would also be exempted from all local and provincial taxes for 20 years.

"They will make Pakistan an economic hub," said Dr Ashfaq when asked what the port operators would give in return. He agreed that it would be an ‘almost tax-free port’.

He said the ECC approved a five-year policy for the automobile industry allowing a gradual tariff reduction on import of cars and light commercial vehicles by up to five per cent to produce about 500,000 vehicles by 2011-12.

“The policy provides protection to the existing car manufacturers but offers incentives at the same time to the new entrants to grow and expand,” he said, adding that the existing policy on import of used cars would remain in place.

He said the tariff on localised parts of the completely knocked down (CKD) cars would be reduced form 50 per cent at present to 45 per cent by 2011-12. Similarly, import tariff on non-localised parts of CKD units would be reduced from 35 per cent to 30 per cent in five years, he added.

Likewise, the tariff on the import of completely built unit (CBU) would remain unchanged at 50 per cent for cars up to 1500cc while the tariff on 1501-1800cc CBUs would be reduced from 65 per cent to 60 per cent in 2009. For CBU cars above 1800cc, the tariff would be reduced from 75 per cent to 70 per cent by the year 2009-10.

Moreover, the tariff on localised parts of light commercial vehicles (LCVs) in CKD form would be reduced from 50 per cent to 45 per cent by 2011-12 while existing 20 per cent tariff on the import of non-localised parts would remain unchanged. The existing 60 per cent tariff on LCVs in CBU condition would also remain unchanged.

The adviser said the auto-policy would enhance total investment in this sector from Rs98 billion to Rs225 billion by 2011 and double its share in GDP to 5.6 per cent. The share of auto sector in manufacturing would increase from 16 to 25 per cent and its revenue contribution would increase from current Rs63 billion to Rs190 billion by 2011, he added.

He said the ECC also decided to sell about 1,423 acres of Pakistan Steel Mills to the industrial sector at a uniform rate of Rs7 million per acre, although 423 acres were partially developed and about 1,000 acres underdeveloped.

The development and management of this land would be done by the National Industrial Parks Development & Management Company (NIPDMC) that would also put in place terms and conditions for use of such land for industrial purposes, he said.

He said the plot would be non-transferable during the lease agreement but failed to explain if the land would be sold or leased out when asked about the lease period.

Dr Ashfaq said the ECC also approved a policy on exploration and development of coal bed methane in Sindh and authorised the provincial government to award the contract to M/S Cathy and Company. He declined to divulge the parameters of the policy but said the ECC had directed the Sindh government to conduct ‘proper due diligence’ with the company.

He said the ECC also allowed the Sui Southern Gas Company (SSGC) to go ahead with the project for import of LNG and start delivering about 3.5 million tons (500 million cubic feet of gas per day) in the first phase by 2010-11 with the option to expand further to import an additional 3.5 million tons by 2012-13.

He said the ECC asked the SSGC to adopt an approach of bringing in a completely integrated plant involving supply, plant for degasification and distribution instead of unbundled and segmented approach and invite request for proposals (RFPs) from 14 companies who had submitted comprehensive statements of qualifications. As such, the RFPs would be invited from Persian LNG and British Petroleum as suppliers while consortiums of Shell, ENI, Mitsui-Kogas, AES, Fauji Corporation-Fourgas and Fotco with Sojitz as plant operators and distributors.

The ECC also approved diversion of about 48 MMCFD of gas from two independent power producers -- Fauji Korangi Power and Western Electric -- to Wapda because the management of the KESC had refused to purchase electricity from the two IPPs.

http://www.dawn.com/2007/02/02/top1.htm

 

[Janbaz]

Agreement with PSA Int. Tuesday, Gwadar port opening in March: minister

KARACHI (updated on: February 03, 2007, 18:41 PST): The government of Pakistan plans in March to inaugurate a new port, built with Chinese help and to be operated by Singapore's PSA International, at Gwadar, in Balochistan.

'President Pervez Musharraf will inaugurate Gwadar port on March 22 or 24,' Babar Khan Ghauri, Minister for Ports and Shipping, told a news conference on Saturday.

He said a formal agreement with PSA International, owned by Singapore government investment holding Temasek, for handling port operations will be signed on Tuesday.

In December, a consortium led by PSA won the contract to operate the deep-sea port on the Arabian Sea.

Under the agreement, PSA will run the port for 40 years, during which time it will be exempted from corporate tax, Ghauri said.

"Also, no duty will be imposed on any equipment and machinery imported to develop the port during this period," he said.

PSA has envisaged investing $3 billion in the project, of which $550 million would be invested in the first five years.

Pakistan's AKD Group is part of the Singaporean consortium.

Business Recorder.
http://www.brecorder.com/index.php?currMIndex=00&currPageNo=1.

 

[joey]

Means gwadar would start functioning by march?
or
"work would start by march?

 

[joey]

someone should buy some apartments theren immediately, once it is build price would go so high.

neo a partnership? damn i'm a student

 

[Janbaz]

Gwadar Port to be operative by March 23: PSA to invest $550 million in five years, says minister

MASROOR AFZAL PASHA
KARACHI (February 04 2007): The Gwadar Port will start its operation by March 23 this year, which would bring economic prosperity to the country, especially to Balochistan province. This was stated by Federal Minister for Ports and Shipping, Babar Khan Ghauri, in an emergency press conference here at Karachi Press Club on Saturday.

He said that President General Pervez Musharraf would inaugurate the operation of Gwadar Port, but the date has not yet been finalised. The port would contribute $40 billion towards national economy and would also generate employment opportunities, he added.

The negotiations with Gwadar port operator, Port of Singapore Authority (PSA), have almost been finalised and an agreement between the PSA and the Ministry of Ports and Shipping would be signed in Gwadar on February 6, in the presence of Prime Minister Shaukat Aziz, he said.

Under the agreement, the PSA would undertake construction of 14 more berths in an area of 4.5 sq km, beside the existing three berths. The PSA would invest $550 million in the next five years.

Ghauri said that some of political leaders of PML (N) wanted to politicise the Gwadar Port issue that reflected an anti-Pakistan, anti-Baloch and anti-people attitude. He said, "Those criticising us today forget that they also offered same concessions, and planned a 50-year concessional period, while we have allowed a 40-year period for duties' concessions, and their government had also planned a 10-year tax holiday."

He said: "All process of Gwadar Port was carried out in a transparent manner and interested parties from private sector were involved in all negotiations." He said that only former Director General Shipping, Captain Anwar Shah, was from the government side in the entire process, and added that all prospective bidders attended the pre-bidding conference, including world-renowned port operating firms like Hutchinson, Globe Marine, etc.

He said that Gwadar would emerge as a hub for PSA and would be like Dubai port, which is a tax- and duty-free port. On the occasion, Arshad A Zuberi, Member, Board of Gwadar Port Implementation Authority (GPIA), who also negotiated with PSA from private sector side, said that best terms and conditions were negotiated with the PSA.

He said that corporate tax exemption was allowed for 20 years, and from the first day of operation, the government would get 9 percent share in income and revenue.

Three companies would work under one operator of Gwadar Port. One company would look after the port area and cargo operation; another one would handle marine affairs like pilotage etc; and the third company would operate 'Free Trade Zone' (FTZ) in which it would construct warehouses and other facilities, he added.

The government would get 15 percent of the revenue from FTZ company, where warehouses and other facilities would be constructed by PSA. Arshad Zuberi said that any dispute would be heard and decided by a court of Pakistan.

He said that the working of Karachi and Qasim ports would not be affected by the commencement of operations at Gwadar port as the latter has been designed to serve transhipment cargoes where mother-ships would unload their cargoes to be shipped to other ports by feeder vessels.

To a query that Balochistan government would lose revenue as local and municipal taxes were also revoked, he said that this decision of exemption was taken by the Balochistan government itself and announced by the Balochistan chief minister. "The federal government has nothing to do with this decision," Arshad Zuberi added.

Federal Secretary for Ports & Shipping, Miss Naheed Hyder, Director General Ports & Shipping, Rear Admiral Syed Afzal, a former Director General Ports & Shipping, Captain Anwar Shah, Arshad Zuberi, Mohammed Rajpur, Farooq Rematullah members of Gwadar Port Implementation Authority (GPIA) accompanied the minister on this occasion.

It may be mentioned that the country needed to develop third port, and even a fourth port, to cater future trade which is growing at over 10 percent per annum during last few years. The Karachi Port Trust (KPT) and Port Qasim Authority (PQA) are also expanding, but have limitation of draught (depth).

The port project comprises facilities to develop Gwadar as an industrial city and to provide facilities for private owned warehouses and cold storage, private cargo handling equipment, trucking yards, corporate infrastructure like offices for operating firms and agencies, on the same pattern of Jebel Ali, Hong Kong Malaysia and Singapore, development of industrial tax free zone and industries.

The port has been designed to be operated as the hub port and it was decided to offer incentive package better than the regional ports like Jebel Ali, Hong Kong Malaysia and Singapore.

Business Recorder.
http://www.brecorder.com/index.php?id=525086&currPageNo=1&query=&search=&term=&supDate=

 

[Janbaz]

Agreement on Gwadar Port operation to be signed on Tuesday

ISLAMABAD: An agreement between Port of Singapore Authority (PSA) and Pakistan for the operation of Gawadar port will be signed February 6, Tuesday in the presence of Prime Minister Shaukat Aziz.

In December, a consortium led by PSA won the contract to operate the deep-sea port on the Arabian Sea, about 450 km (280miles) west of the city of Karachi and about 70 km (45 miles) east of the Iranian border.

Under the agreement, PSA will run the port for 40 years, during which time it will be exempted from corporate tax.

PSA has envisaged investing $3 billion in the project; of which $550 million would be invested in the first five years. Pakistan's AKD Group is part of the Singaporean consortium.

Geo TV.
http://www.geo.tv/geonews/details.asp?id=1690&param=3

 

[Neo]

Sunday, February 04, 2007

Gwadar revenue to be shared with Balochistan: Babar

* President Musharraf to inaugurate Gwadar port on March 22 or 24

KARACHI: Shipping and Ports Minister Babar Ghouri has said that Gwadar Port which has been leased to a Singapore firm would earn a handsome revenue of $40 billion, which would be shared with the Province of Balochistan.

While addressing a press conference at the Karachi press club on Saturday, he informed that the inaugural for the 40-year lease would be signed on March 22 by PM Shaukat Aziz, and Balochistan would be given due share, talks for which are underway between the federal and provincial government.

He said that government efforts are specifically aimed at reducing the poverty in the Province, and announced that all employments of grades 1 to 16 would belong to thje locals, who would also be given a sizeable quota from within Upper grade officers.

He said that Gwadar Project was not being opposed by general provincial masses, but rather by some miscreant elements, and also claimed that despite some corrigible reservations, "nationalist elements" were also quite in favor of the project.

Replying to a question he said that Gwadar Port would be used solely for commercial and trade activities, however in case of any untoward emergency it can be and would be used for security purposes as well.

He denied that the construction of the Port would harm other ports of the country, since the port stands to compete with Dubai port. While replying in reference to another question about the port regarding fraudulent registration of estates he said that, he has no knowledge whatsoever about the issue, since it is a provincial issue and could be answered by the provincial government.

Pakistan plans in March to inaugurate a new port, built with Chinese help and to be operated by Singapore's PSA International, at Gwadar.

Pakistan has grand plans to turn the port into a major energy and container transport hub to open up trade routes with Central Asia.

"President Pervez Musharraf will inaugurate Gwadar port on March 22 or 24," Babar Khan Ghauri, Minister for Ports and Shipping, told a news conference on Saturday.

He said a formal agreement with PSA International, owned by the Singapore government investment holding Temasek, for handling port operations will be signed on Tuesday.

In December, a consortium led by PSA won the contract to operate the deep-sea port on the Arabian Sea, about 450km (280 miles) west of the city of Karachi and about 70km (45 miles) east of the Iranian border.

Under the agreement, PSA will run the port for 40 years, during which time it will be exempted from corporate tax, Ghauri said.

"Also, no duty will be imposed on any equipment and machinery imported to develop the port during this period," he said.

PSA has envisaged investing $3 billion in the project, of which $550 million would be invested in the first five years. Pakistan's AKD Group is part of the Singaporean consortium.

http://www.dailytimes.com.pk/default.asp?page=2007\02\04\story_4-2-2007_pg5_1