Gwadar - A Jewel in the Crown

[Neo]

Minister rejects negative propaganda on Gwadar project

LAHORE (February 05 2007): Categorically rejecting negative propaganda on Gwadar project by certain political elements, the Federal Information Minister Muhammad Ali Durrani averred in a press conference here on Sunday that development tempo set in Balochistan would not be allowed to be reversed. He said with the Gwadar project, financial activity involving $50 billion would occur.

Speaking on building of water reservoirs in the country, he unequivocally declared that all mega water projects, including Kalabagh dam, would be constructed. He said the cabinet had taken a decision on that and the government was going to implement that, he vowed.

Criticising acts of terrorism occurring in the country, he urged thepeople to fight against this menace in unison with the government.

He also called upon students of Madarsa to wage a Jehad against acts of terrorism as Pakistan was the citadel of Islam and it was their responsibility to preserve this stronghold against nefarious designs, including that of terrorist acts, he pointed. He also implored opposition to be positive in their approach on the issue of terrorism.

Durrani on the question of holding fair elections in the country asked the opposition to play its part in holding transparent elections in the country.

The minister invited the opposition to forward its suggestions on holding the transparent elections in the coming session of the National Assembly. The government would welcome opposition's point of view provided it remained within the ambit of constitution of the country.

Durrani said the era of development had commenced in the country and in the earlier months of the year, a record foreign investment had been made in the country.

To a question of probing any project by press or opposition, the minister said the government and his ministry in particular would provide all assistance in this regard.

He said the ruling political party would contest the next general elections with its impregnable record on development. He said gone were the days of industrial estates such as Ittefaq and Zardari Estate. He said the present government had ventured on industrial estates like Sundar Estate instead, he added.

Durrani said the pace of development would continue unabated and the present government would expand its ventures of industrial estates throughout the Country, he vowed. to another question on rising prices of certain commodities in the country, the minister said they were constantly monitoring these trends. He said due to this effective monitoring there had been a decrease in prices of sugar and cement in the past.

He said he would in near future present a comparative analysis of development under the present regime and previous governments before the nation.

http://brecorder.com/index.php?id=525453&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

Shaukat eyes Gwadar port regional hub as PSA takes control

GWADAR: February 06, 2007: Pakistan on Tuesday signed an accord with Singapore port operator Port of Singapore Authority (PSA) International, allowing the south-east Asian firm to take control of Gwadar deep-sea port.

Pakistan plans to inaugurate Gwadar port, which is on the Arabian Sea in the south-western province of Balochistan, in March. PSA International, which is owned by the Singapore government investment holding Temasek, won the contract to operate the port in December.

"With the PSA running this port, down the road this can be a regional hub for sea transport and trade," Prime Minister Shaukat Aziz told reporters after a signing ceremony.

Aziz said the first vessel is likely to anchor at Gwadar in March. The government aims to turn Pakistan's second deep-sea port after Karachi into a free-trade zone.

Gwadar is looking to handle trans-shipment traffic for the Gulf and ports on the Arabian Peninsula. Pakistan also plans to use it as the main trade link with land-locked Afghanistan and Central Asia.

"We hope this will be the beginning of an era which will change the map of shipping in the world," Aziz said.

"This can also be a potential energy port for the region. We are also looking at Gwadar as a major refining point as it is located near the largest hydrocarbon reserves of the world."

China bankrolled 80 percent of the project's $248 million initial development costs.

A consortium led by PSA won the contract to operate the port, which is about 450 km (280 miles) west of Karachi and about 70 km (45 miles) east of the Iranian border.

SECURITY WORRIES

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

Pakistan has also abolished all duties on any equipment and machinery imported to develop the port for 20 years.

PSA has estimated investment at $5 billion to $8 billion in the project over 40 years. It expects the port will generate revenue of $17 billion to $31 billion over the same period.

"Gwadar will be an important and significant addition to PSA's global network of deep sea ports, which globally provide employment for over 22,000 people across Asia and Europe," said Eddie Teh, Group chief executive officer for PSA.

AKD Group is part of the Singaporean consortium.

Conceived more than a decade ago, the port was delayed repeatedly because of a lack of funds and security concerns.

In 2005, Pakistan delayed the port's inauguration after a bomb killed three Chinese technicians working on the project.

http://www.brecorder.com/

 

[Neo]

Gwadar Port to contribute $42.2 billion in 40 years: concession agreement to be inked today

KARACHI (February 06 2007): The Gwadar Port will contribute $42.2 billion, in terms of investment, revenues and income received from its entire operations to the exchequer, over a period of 40 years. According to sources, the concession agreement is going to be inked on Tuesday, February 6, between the Gwadar Port Authority (GPA).

Which represents the Government of Pakistan, and the Concession-Holder Company (CHC), which is a subsidiary of PSA (Port of Singapore Authority) International PTE Limited.

The agreement has a duration of 40 years. Besides, it regulates the rights and obligations of both parties. The GPA will receive revenues (not profit) from the PSA over a period of 40 years. The investment, revenues and income received from Gwadar port's entire operations are between $23.6 billion to $42.2 billion.

Firstly, the GPA expects $5 billion to $8 billion foreign investment in the area of Multi-purpose (MP) terminal and related equipment's to cost PSA at Gwadar Port which would be $1 billion to $1.5 billion; container terminal and others $2billion to $4 billion; the cost of Free Zone development $1.5 billion to 2.5 billion; while the marine services and others would cost $0.5 billion.

Secondly, the GPA to receive revenues from CHC over next 40 years is expected between $17 billion and $31 billion. The expected revenues generated from containers and others would be $10 billion to $18 billion; Free Zone to generate $3 billion to $6 billion; while the MP terminal and others would produce $4 billion to $8 billion revenues during the period.

Thirdly, the GPA would receive income from PSA over the period of four decades between $1.6 billion and $3.2 billion, in which the CHC of containers and others would give $0.9 billion to $1.6 billion (9 percent of CHC revenue); Free Zone $0.45 billion to $0.9 billion (15 percent of CHC revenue); and the MP terminal and others would provide $0.36 billion to $0.72 billion (9 percent of CHC revenues).

The Concession-Holder Company (CHC) will establish separate three operating companies for each of the above business areas. Where appropriate, the CHC can cooperate with strategic partners at the level of the operating companies.

The Port-CHC manages terminal and cargo operation. The CHC will take over the marketing and operations of the current terminal area, which provides 602 metres of berthing and will invest in and expand berthing space in line with demand during the concession period up to a total maximum of berthing space of 14 berths at an area of 4.2 km. These facilities will cater for container cargo and miscellaneous cargo.

The Marine CHC services consist of piloting, tugging, mooring, and vessel traffic control and anchorage management and related marine services, such as bunkering facilities. The CHC shall expand the fleet of pilot and tugging vessels in line with demand.

The AKD Group would have majority CHC and operate the 'Free Zone CHC' and shall develop and operate this area and market its facilities and services. The area set aside within this concession for Free Zone activities related to the port has a size of approximately 923 hectares.

THE ROLE OF GPA: As Port Authority, it will remain responsible for the development and maintenance of common port infrastructure, such as access channels, breakwaters and access roads as well as navigational safety and port security.

The terminal areas under the concession, two terminal areas will be developed including multipurpose terminal area. This terminal includes the existing facilities and the areas will be expanded in easterly direction up to a total length of 4.2 km. It caters for various types of cargoes.

The container terminal area is located along the western and north-western coastline of the 'East Bay' and is to be developed by the CHC. The financial arrangements between the parties are simple and the CHC will pay a fixed share of its revenues to the GPA.

For the cargo operations and for marine services, this percentage is set at 9 percent of the revenues. For the Free Zone business, the percentage is set at 15 percent of revenues. The tax incentives for the CHC are given a complete tax holiday for the first 20 years of the concession. This applies to federal, provincial and local taxes.

The materials and equipment that will be used in the construction and operations of the port will be kept free of taxes. Likewise, the bunker oil used in the port or sold to visiting ships will be kept free of duties. These privileges will remain throughout the concession period.

The purpose of the Free Zone is to develop and operate facilities and businesses that are conducive to and dependent on the development of the port. The companies and business activities that are targeted for operations in the Free Zone, which is a customs-bonded area within the land area of the port, will be given a tax holiday of 20 years.

The concession holder will develop at least 20 percent of required facilities within the Free Zone area. The remainder will be developed by either the concession holder or by other investors.

The exports of goods from the 'Free Zone' into Pakistan are subject to normal import duties. Exports of goods from Pakistan into the Free Zone are subject to normal export duties, if any.

The imports and exports of goods that are only moving through the Free Zone, but do not enter Pakistan (transit and transhipment), are kept free of duties, which is in line with normal practices for such facilities.

THE START-UP: The concession holder has committed that the first ship and the first cargo will be handled in Gwadar port in March 2007. The concession holder has committed to install two additional quayside gantry cranes for the handling of containers within nine months period.

THE SELECTION AND NEGOTIATIONS PROCESS: The international management-consulting firm of Arthur D. Little has overseen the entire process and has acted as technical advisor to GPA during the process. This consulting firm has extensive global experience and expertise in port planning and in negotiations with port and terminal concession holders.

The selection process has followed the normal procedure of invitations for expressions of interests (EoIs), pre-qualification and short-listing of bidders, issuance of tender documents and technical and financial evaluation of tender proposals, followed by negotiations with the winner of the tendering process.

The tender proposals were received on December 4, 2006 and the negotiation process started on December 27, 2006. The entire selection process was started on September 27, 2006, and completed on February 5 this year.

http://www.brecorder.com/index.php?id=525606&currPageNo=1&query=&search=&term=&supDate=

 

[Neo]

February 06, 2007
Govt indecisive on role, status of Gwadar port

By Pervaiz Ishfaq Rana

KARACHI, Feb 5: The government appears to be indecisive about the status and role of Gwadar port, and shipping circles are not clear whether it will be a hub port accommodating mother ships for trans-shipment trade or merely a feeder port catering on to the needs of the hinterland.

The issue came up during a presentation given by a government official to a gathering of experts from shipping circles and ports. He downplayed the trans-shipment role of Gwadar. Instead, he assigned priority to industrial free zone, petrochemicals and storage. This is not an issue as simple as it looks, because there is a huge difference between the two categories of ports. Engineering, infrastructure and back-up requirements for the two differ widely, as do the port development costs. The two types of parts also demand different marketing skills.

Why did the government spend millions of dollars on a deep draft up to 14.5 metres when it did not want Gwadar, strategically located outside the Strait of Hormuz, to be a hub port? The question is going the rounds ever since an official of the Gwadar Port Authority indicated this during a seminar organised by the Pakistan International Freight Forwarders Association.

More intriguing is the role of relevant authorities which advertised for bids from port operators regarding the draft at 11.5 metres while the actual draft was planned to be 14.5 metres. This perhaps was meant to block certain bidders, alleged some people in port and shipping circles. Some experts are of the opinion that its strategic location and importance in the region demand lots of care and thorough investigation regarding linkages and interests of the entities to be allowed access to it.

They have reservations about endowing pilotage to a foreign firm because, according to them, this should be the responsibility of the Gwadar Port Authority owing to the port’s importance for national security. It should be the GPA’s responsibility to determine the category of vessels being brought into the port for berthing, whether warships or merchant ships.

Though officials are not ready to divulge details of contracts, it is generally perceived that a major part of fee charged by consultants is being used for marketing the port. Some experts maintain that marketing of the port should be the responsibility of operators and not of consultants.

Another area of uncertainty concerns the government’s reluctance to give priority to trans-shipment, meaning that no shipping line would commit itself to Gwadar port and only feeder vessels will call there. This will definitely provide relief to Dubai and Salalah ports which had reasons to feel threatened by the potential of Gwadar.

The 50-year lease period for Gwadar is another factor worrying the experts who say that nowhere in the world a long-term contract is of more than 25 years, mid-term for more than 10-15 years and a short-term contract for more than 5-7 years.

Even in cases where a port is given on ‘build, operate and transfer’ (BOT) basis and operators bring in all the required equipment, the maximum lease period never exceeds 20 to 25 years – in no case 50 years as has been the case with Gwadar port.

As for revenue factors, the experts believe that the revenue-sharing formula goes against the interest of the port. By moving away from the conventional method, the negotiators seem to have overlooked the fact that in case of the port stopping operations there would be no revenue. According to the experts, the GPA or the national exchequer will bear the cost of navigational channel maintenance, dredging, security and fire-fighting, all of which are of permanent nature.

The port, by all standards, is more suitable for trans-shipment cargo because of its location on the world sea route. It would cater to the needs of the Central Asian states through Iran as the first border post is a mere 70km away from the port.

Iran has the entire infrastructure along with rail and road links, while on the Pakistani side the National Highway Authority has already built a road from Gwadar to the Iranian border.

Above all, the country’s cargo which at present comes through Dubai and Salalah as transhipment cargo will then directly land at Gwadar to be carried by road to Karachi and other parts of the country. This will not only save freight and time but will also enable Pakistani exporters and importers to compete in the world market, the experts said.

http://www.dawn.com/2007/02/06/top2.htm

 

[Neo]

Tuesday, February 06, 2007

Gwadar port: Cargo handling to be enhanced to 300MT

ISLAMABAD: The cargo handling capacity of Gwadar port would be expanded upto 300 million tonnes from current 50 million tonnes within the next two decades.

The Gwadar port has been completed with the cost of more than Rs 16 billion with the assistance of China in record three years' time, PTV reported.

Gwadar is situated at a location where 40 percent oil ships are passing. Gwadar a new economic hub of Pakistan is located at the entrance of Persian Gulf. It has immense geo economic significance. Instability in Middle East and emergence of new central Asian states has intensified its significance. With the functioning of Gwadar port, Pakistan will become a key player in the Gulf region and serve as an energy corridor for Central Asia, South Asia and Western Part of China. The government has focused on strengthening infrastructure of Balochistan as 35 percent budget of NHA was being spent on building a network of roads and highways in the province, which would open up more income generation and employment opportunities in the province.

An amount of Rs 40 billion were being spent on the development of road networks across Balochistan aimed at connecting Gwadar port with the entire region. Gwadar would be connected with Afghanistan through Sarab- Quetta and Chaman.

http://www.dailytimes.com.pk/default.asp?page=2007\02\06\story_6-2-2007_pg5_10

 

[Janbaz]

Gwadar Port to change destiny of Balochistan people

GWADAR: Prime Minister Shaukat Aziz Tuesday said Gwadar deep seaport project will change destiny of people in Balochistan province by improving their living standards and providing increased job opportunities.

Talking to newsmen after signing of agreement by the government with Port Singapore Authority for Gwadar port's operation and management, he said port will become attractive destination for cargo traffic providing better facilities to large vessels.

The port will be formally inaugurated next month by PresidentPervez Musharraf.

Prime Minister said Port Singapore Authority will invest US$550million in next five years. No duty will be imposed on machinery imported for development work in this area.

He said port will enhance Pakistan's strategic importance in South West Asia and usher in new era of socio-economic development in Balochistan. A new airport and industrial zone will also be developed at Gwadar.

“We want to operate this port in best possible manner and selected best company, which is operating ports in 11 countries.'' It will be linked with Central Asian Republics.

A rail link with whole country was also being actively considered.

Earlier, speaking at signing ceremony, he said through implementation of mega projects like Gwadar Port, government will embark on increased socio-economic development in the country.

“As a result of competitive services expected to be offered at Gwadar Port, there will be investment, employment and increased economic activity.''

He spoke Chinese technical and financial support and said China “greatly helped us in translating dream of Gwadar Port into a reality.''

Shaukat Aziz said reducing cost of doing business improved investment environment in Pakistan, positive impact on economic growth and employment generation.

Geo TV.
http://www.geo.tv/geonews/details.asp?id=1776&param=1

 

[genmirajborgza786]

Agreement signed for Gwadar Port operations


By Shamim-ur-Rahman

GWADAR, Feb 6: The deep-sea Gwadar Port will emerge as a central energy port in the region, said Prime Minister Shaukat Aziz after the signing of a 40-year agreement between the Gwadar Port Authority (GPA) and the Concession Holding Company (CHC) — a subsidiary of the Singapore Port Authority — for operating and managing the port. The agreement was signed by Eddie Teh, CEO of the SPA Group, Commodore Muneer Wahid, acting chairman of the GPA, and Aslam Hayat, chairman, GP Implementation Authority.

Federal Minister for Ports and Shipping Babar Khan Ghouri, Balochistan Governor Owais Ghani and chief ministers of Balochistan and Sindh were present on the occasion.

“Gwadar port will become an important and strategic storage destination because it is located near the world’s largest hydro-carbon resources,” said Mr Aziz, adding: “With the passage of time the port will help improve the living conditions of the people of Balochistan. It will also increase job opportunities in the area.

“Gwadar will become an attractive destination for cargo traffic as it will provide better facilities to larger vessels.”

He further said the cost of doing business in Gwadar would be less than in Dubai while it had all prospects to become a support centre for Dubai.

The port will be formally inaugurated by President Pervez Musharraf in March when a cargo vessel will be docked at the harbour built with the Chinese assistance. Mr Aziz did not give a particular date but according to sources it is around March 22.

The SPA, which operates 22 ports in 11 countries will invest $550 million in next five years, said the prime minister.

Duties will not be imposed on the machinery to be imported for development work in the area, he said, adding that plans were afoot to establish a new airport and an industrial zone at Gwadar.

Delving on the government’s plan to develop network of roads and other infrastructure, he said a rail link encompassing the entire country is also being actively considered.

Discussing the technical and financial support, he said, “China has greatly helped us in translating the dream of Gwadar Port into a reality.”

The areas where the concession agreement is to be implemented are terminal and cargo handling operations, marine services and free zone development.

The GPA will receive a fixed share of revenue. About nine per cent has been set for cargo operations and marine services and 15 per cent for free zone business.

http://www.dawn.com/2007/02/07/top2.htm

 

[Neo]

Defence, navy refuse land for Gwadar Port

ISLAMABAD (February 07 2007): The Ministry of Defence (MoD) and the Naval Headquarters (NHQ) have jointly refused to hand over 584 acres for the envisaged 'free zone area' at Gwadar Port despite persistent requests by the Prime minister Secretariat, official sources told Business Recorder.

According to the concession agreement, due to be signed between the Government of Pakistan and the Port of Singapore Authority, International/AKD, Gwadar Port Authority (GPA) is required to purchase additional land of 350 hectares for 'free zone area' in addition to 584 acres in the possession of Pakistan Navy and 70 acres with the coast guards at Gwadar.

The Economic Coordination Committee (ECC) of the cabinet in its meeting on February 1 had approved tax holiday on corporate income of three companies to be established for Gwadar Port operation for 20 years. Besides, exemption of import duties on materials and equipment for construction, operation of the port and development of free zone for 40 years have been agreed upon. In addition, the ECC has also granted exemption of duties on ship bunkers oils for Gwadar for 40 years.

Pleading the case of Pakistan Navy, Defence Ministry said that cognisant of the geo-strategic importance of Gwadar and the national defence requirements to safeguard the maritime interests and seaward defence, PN acquired 584 acres of land with sea front in 1980, the sources added.

The facilities required on this area include jetties, yard services and logistics housing and associated base infrastructure for SSG (N) and Pak Marines for port security and harbour defence, the sources said adding that master plan for the project has been completed and ready for implementation.

The ministry is of the view that with the coming up of Gwadar Port, such requirements have become all the more important, PN operational requirements are, therefore, needed to be dovetailed in the Gwadar Port Master Plan by providing seafront for jetties to the PN.

The sources said that the case for handing over the subject land to GPA has also been deliberated earlier at the highest forum. Proposal to retain the land by PN for operational purpose was explained, which was agreed upon. According to sources, Prime Minister secretariat decided that PN would hand over only 30 acres to GPA, which would be sufficient.

The defence ministry further said that GPA has long enough waterfront available for mercantile needs and development of free zone. Waterfront is not required for a free zone while the same is a necessity for naval operations infrastructure.

" It is reiterated that 584 acres of land with PN at Gwadar is essentially required for defence of maritime interests of Pakistan as well as for the protection of the port itself. There is ample land available at Gwadar for setting up of free zone and other commercial activities," the sources quoted the MoD as saying in its comments on the summary of Ports and Shipping Ministry which was cleared by the ECC.

The defence ministry said it endorses operational dictates by the NHQ, but proposed a separate meeting amongst the ministries of defence, ports and Shipping and PN, the sources concluded.

http://www.brecorder.com/index.php?id=525904&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Development revolution in the offing at Gwadar: Prime Minister

GWADAR (February 07 2007): Prime Minister Shaukat Aziz on Tuesday hinted that a development revolution is in the offing in Gwadar, which includes setting up of series of new industries after the start of Gwadar Port operation.

Speaking at the signing ceremony of the 'Concession Agreement' between Gwadar Port Authority (GPA) and Port of Singapore Authority (SPA) International-AKD Group here.

After Gwadar Port, the government has approved another big project for this city (Gwadar), the master plan of Gwadar international airport and directed the Civil Aviation Authority (CAA) to start its construction, he said, adding that the new airport would attract wide-bodied aircraft for passengers traffic as well as provide base for air freight cargoes.

He said: "A development revolution is coming in Gwadar after the port becomes operational with its allied industries. We have also another industrial areas in the city (Gwadar)."

The Gwadar Port is located on the edge of world's largest hydrocarbon reserves and capable to become energy corridor and we are heading towards it, he added.

Shaukat Aziz said, the Gwadar Port would accommodate mother and panamax vessels in its proximity and encourage feeder services for Middle Eastern ports like Dubai and Salalah ports due to its low port charges.

The Gwadar Port would also serve as a support port for many Middle Eastern ports, especially Dubai port, he said, adding that first vessel is expected to arrive in the fourth week of March which would be a great achievement for the present government.

He said, the government acquired a land area of 500 acres from Pakistan Navy for cargo handling of Gwadar Port. The construction of coastal highway has given a boost to the Gwadar and other coastal cities and would definitely help the third port (Gwadar) of the country, Shaukat said, adding that now we are concentrating on the north part of Gwadar to build a communication link with other parts of the province, especially Central Asian countries.

He said: "The government is committed to protect the heritage of Gwadar city as during my journey, I witnessed lots of fishing boats were in process of construction as in the past such activities were limited." He lauded the co-operation made by the former Chinese Premier for the development, construction and providing funds for Gwadar Port.

Earlier, Aslam Hayat, acting chairman Gwadar Port Implementation Authority (GPIA) and Commodore Muneer Wahid, acting chairman Gwadar Port Authority (GPA) from PSA side, Eddy Teh, the Group Chief Executive Officer of Port of Singapore Authority (PSA) International and Khurram Abbas Chairman PSA Gwadar inked the concession agreement in presence of Prime Minister Shaukat Aziz.

The Group CEO of PSA International, Eddy Teh said the Gwadar Port has now linked with the world's largest and deepest ports that was operated by the PSA group.

"The PSA to work link this port (Gwadar) to facilitate trade and become part of important chain of ports internationally," he added. He said the PSA and members of GPIA work hard and round-the-clock for achieving this agreement.

According to project detail, the agreement has duration of 40 years. Besides, it regulates the rights and obligations of both parties. The GPA will receive revenues (not profit) from the PSA over a period of 40 years. The investment, revenues and income received from Gwadar Port's entire operations are between $23.6 billion to $42.2 billion.

The Concession-Holder Company (CHC) will establish separate three operating companies for each of the above business areas. Where appropriate, the CHC can co-operate with strategic partners at the level of the operating companies.

The GPA expects $5 billion to $8 billion foreign investment in the area of Multi-purpose (MP) terminal and related equipment's to cost PSA at Gwadar Port which would be $1 billion to $1.5 billion; container terminal and others $2billion to $4 billion; the cost of Free Zone development $1.5 billion to 2.5 billion; while the marine services and others would cost $0.5 billion.

The GPA to receive revenues from CHC over next 40 years which is expected between $17 billion and $31 billion. The expected revenues generated from containers and others would be $10 billion to $18 billion; Free Zone to generate $3 billion to $6 billion; while the MP terminal and others would produce $4 billion to $8 billion revenues during the period.

The GPA would receive income from PSA over the period of four decades between $1.6 billion and $3.2 billion, in which the CHC of containers and others would give $0.9 billion to $1.6 billion (9 percent of CHC revenue); Free Zone $0.45 billion to $0.9 billion (15 percent of CHC revenue); and the MP terminal and others would provide $0.36 billion to $0.72 billion (9 percent of CHC revenues).

The Port-CHC manages terminal and cargo operation. The CHC will take over the marketing and operations of the current terminal area, which provides 602 metres of berthing and will invest in and expand berthing space in line with demand during the concession period up to a total maximum of berthing space of 14 berths at an area of 4.2 km.

These facilities will cater for container cargo and miscellaneous cargo. The Marine CHC services consist of piloting, tugging, mooring, and vessel traffic control and anchorage management and related marine services, such as bunkering facilities. The CHC shall expand the fleet of pilot and tugging vessels in line with demand.

The AKD Group would have majority CHC and operate the 'Free Zone CHC' and shall develop and operate this area and market its facilities and services. The area set aside within this concession for Free Zone activities related to the port has a size of approximately 923 hectares.

http://www.brecorder.com/index.php?id=525888&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Wapda inks power purchase agreement with Iran

LAHORE (February 08 2007): An agreement for purchase of 100 MW electricity from Iran for Gwadar was signed between Pakistan Water and Power Development Authority (Wapda) and M/s Tavanir here at Wapda House on Wednesday.

Anwar Khalid, Member (Power) Wapda and Muhammad Shabbir Chaudhry, Chief Executive Officer NTDC and Engineer E. Mohseni Kabir of M/s Tavanir signed the agreement on behalf of Wapda-NTDC and the Iranian Company, respectively. Chairman (Wapda) and members of the Iranian delegation were also present on the occasion.

Under the agreement, the import of power will be through a 170-km long 220 KV double circuit transmission line between 220 KV Polan sub station at Iran side and 220 KV GIS Gwadar sub-station. A 100-km long line will be constructed in Pakistan and remaining 70 km in Iran.

The total cost of the project is 86 million dollars, out of which 26 million dollars will be borne by M/s Tavanir and is included in the tariff, which is 6.25 cent, applicable from December 31, 2008, whereas the remaining 60 million dollars will be borne by NTDC. Subsequently the import of power can be enhanced up to around 400 MW to meet the future requirement of Gwadar as well as the coastal area of Balochistan.

It may be mentioned that at present 35 MW power is being imported from Iran through Mand interconnection on 132 KV, Tuftan 2 MW on 20 KV and Mashkehl 2 MW on 20 KV.

http://www.brecorder.com/index.php?id=526279&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Defence, navy refuse land for Gwadar Port

ISLAMABAD (February 07 2007): The Ministry of Defence (MoD) and the Naval Headquarters (NHQ) have jointly refused to hand over 584 acres for the envisaged 'free zone area' at Gwadar Port despite persistent requests by the Prime minister Secretariat, official sources told Business Recorder.

According to the concession agreement, due to be signed between the Government of Pakistan and the Port of Singapore Authority, International/AKD, Gwadar Port Authority (GPA) is required to purchase additional land of 350 hectares for 'free zone area' in addition to 584 acres in the possession of Pakistan Navy and 70 acres with the coast guards at Gwadar.

The Economic Coordination Committee (ECC) of the cabinet in its meeting on February 1 had approved tax holiday on corporate income of three companies to be established for Gwadar Port operation for 20 years. Besides, exemption of import duties on materials and equipment for construction, operation of the port and development of free zone for 40 years have been agreed upon. In addition, the ECC has also granted exemption of duties on ship bunkers oils for Gwadar for 40 years.

Pleading the case of Pakistan Navy, Defence Ministry said that cognisant of the geo-strategic importance of Gwadar and the national defence requirements to safeguard the maritime interests and seaward defence, PN acquired 584 acres of land with sea front in 1980, the sources added.

The facilities required on this area include jetties, yard services and logistics housing and associated base infrastructure for SSG (N) and Pak Marines for port security and harbour defence, the sources said adding that master plan for the project has been completed and ready for implementation.

The ministry is of the view that with the coming up of Gwadar Port, such requirements have become all the more important, PN operational requirements are, therefore, needed to be dovetailed in the Gwadar Port Master Plan by providing seafront for jetties to the PN.

The sources said that the case for handing over the subject land to GPA has also been deliberated earlier at the highest forum. Proposal to retain the land by PN for operational purpose was explained, which was agreed upon. According to sources, Prime Minister secretariat decided that PN would hand over only 30 acres to GPA, which would be sufficient.

The defence ministry further said that GPA has long enough waterfront available for mercantile needs and development of free zone. Waterfront is not required for a free zone while the same is a necessity for naval operations infrastructure.

" It is reiterated that 584 acres of land with PN at Gwadar is essentially required for defence of maritime interests of Pakistan as well as for the protection of the port itself. There is ample land available at Gwadar for setting up of free zone and other commercial activities," the sources quoted the MoD as saying in its comments on the summary of Ports and Shipping Ministry which was cleared by the ECC.

The defence ministry said it endorses operational dictates by the NHQ, but proposed a separate meeting amongst the ministries of defence, ports and Shipping and PN, the sources concluded.

http://www.brecorder.com/index.php?id=525904&currPageNo=2&query=&search=&term=&supDate=

Defence agrees to hand over Pakistan Navy land to GPA


ISLAMABAD (February 08 2007): The Ministry of Defence and Pakistan Navy have agreed to hand over 584 acres land to Port of Singapore Authority, International/AKD, the operators of Gwadar Port, on the directives of the President and the Prime Minister, official sources told Business Recorder.

"The 584 acres of land, in possession of Pakistan Navy at East Bay of Gwadar, is to be handed over to the Gwadar Port Authority (GPA) as soon as possible," a letter from the Defence Ministry sent to NHQ, President and Prime Minister Secretariats said, according to sources.

Sources said that the Pakistan Navy would work out its operational requirements at an alternative site, and submit its plan through Joint Chiefs of Staff Committee (JCSC) for approval and funding by the government.

Earlier, Pakistan Navy had refused to hand over the land to GPA, saying that the land at Gwadar was essentially required for looking after maritime interests of the country as well as for protection of the port itself. It argued that there was ample land at Gwadar for setting up 'free zone area' and carrying out other commercial activities.

http://www.brecorder.com/index.php?id=526238&currPageNo=2&query=&search=&term=&supDate=

 

[Neo]

Gwadar: a gateway to progress

GOING by the international practice, the Gwadar Port Authority (GPA) has signed an agreement with Singapore Port Authority (SPA) and its subsidiary, Concession Holding Company, for the development and operation of the country’s tax-free port and duty-free trade zone. The 40- year agreement is a milestone in creating an economic hub and an energy corridor located as Gwadar is close to the world’s largest gas and oil reserves and fast growing energy-guzzling Asian economies. The building of a seaport is a major initiative by Pakistan for increasing regional cooperation. The GPA-PSA accord on Tuesday was followed a day later by another agreement by Wapda with an Iranian firm for the supply of 100 mw of electricity to Gwadar. The first vessel to dock at the port will arrive sometime next month. Roads, highways and other lines of communication are being developed to link Gwadar with the rest of the country and Central Asia.

The construction of an international airport is to start soon. Landlocked Central Asia would get speedy access to a modern and efficient feeder port for its transit trade. China can cut much of its freight costs and save time by routing its trade through Gwadar with the Middle East and Africa, particularly for its western region and especially for oil imports. To enable Gwadar to compete with its regional peers, the port fees will be kept low by allowing a wide range of tax concessions to the PSA subsidiaries to cut operational and business costs. These include exemption from corporate tax for 20 years, duty-free imports of materials and equipment for the port and a free zone and zero rate of duty for shipping and bunker oil for forty years. Any change in the port tariff would be subject to approval by a ministerial authority. With a worldwide reputation, the SPA is expected to induct the state of the art technology and provide modern and efficient maritime services. But a major breakthrough in transit and bilateral trade with Pakistan with Central Asia would come when the much awaited peace and security returns to Afghanistan.

A regional seaport and an economic hub in one of the most under-developed but strategically important areas can bring prosperity to the people of Balochistan. Gwadar would be a high-growth point, providing impetus to investment in oil, gas and mineral resources in the province. But an improvement in the lot of the locals depends on an effective policy to provide them jobs and business opportunities. While suffering from huge fiscal deficits with no major resources within its jurisdiction, the province has been made to exempt the CHC from the levy of provincial and district taxes. It has been deprived of funds which could help develop its human resources to enable the locals to actively participate in, and benefit from, economic development in their province. Balochistan needs to be compensated by providing a share in revenues of the Gwadar port. The GPA will get a fixed share of nine per cent of the revenue from cargo and maritime services and 15 per cent of the revenue earned from the free trade zone. It is important that skills development centres are set up to train people in the jobs required for the port and the free zone. The fruits of economic progress need to be widely shared.

http://www.dawn.com/2007/02/09/ed.htm#1

 

[Janbaz]

Real estate prices rise 100pc in Gwadar

By Saleem Shahid

QUETTA, Feb 10: The real estate business responded differently in Quetta and Gwadar reacting to administrative actions and the political climate with varying prices at different level.

There is a steep rise in prices of real estate in this provincial capital attracting massive investment from all corners--from genuine buyers to the drug barons--or people having black money.

The rise in prices has been constant in Quetta for years. Even, the military operation in the province during the recent months did not stem the growth of prices of real estate and the people were ready to pay the higher prices.

Some people thought that the Quetta valley was the most costly township where real estate prices are higher than any other city of Pakistan.

The reason was the induction of drug money into the business. Buying and selling of property was inseparably linked with the poppy crops in the neighbouring Afghanistan.

However, the real estate prices crashed after the death of Nawab Bugti in military operation and widespread agitation in different parts of Balochistan making the property insecure.

"The prices of property frizzed at a level after falling 10 to 20 per cent in Quetta since August last," Iftikhar Pervez, a real estate businessman told Dawn, adding that the people were contacting property dealers for selling their property but there was no purchaser. He said that last year the market of real estate was up and people were getting good price of their property.

Deteriorating law and order and worsening political situation are badly hampering the real estate business. Bomb blasts, rocket attacks and hurling of grenades in houses in posh localities was another big reason that is also restricting investment in the property business. "We are waiting for the spring season when people would return to Quetta after spending winter vacation," he said.

According to another property dealer the drug barons and people having black money usually like to purchase property having commercial value and they pay good price to the owners of houses near main commercial centres.

With the passage of time the old residential areas of Quetta city were converting into commercial areas. "The old Quetta city is becoming the city of multi-story buildings and plazas as people are investing their money in this business," Ifranullah another property dealer said.

However, the situation in Gwadar is totally different. There is a fall in prices following unearthing the land scam involving big people. The fall in property prices was linked with the fears about security of investment. The people were reluctant to invest their money in residential, commercial and industrial plots in Gwadar.

This trend affected the prices of real estate as people who purchased residential or commercial plots started selling them to save them from further loss.

However, the agreement signed with the Singapore Port Authority for operating the Gwadar Port, and the government announcement to establish a huge industrial estate, a free trade zone and other projects, including oil terminals, huge refineries, attracted the investors again to spend money in buying property in Gwadar.

"Signing of agreement and announcement of various incentives by the federal government increased the prices of real estate by 100 per cent in last one week," Fazalur Rehman a leading property dealer told Dawn. He said that a residential plot of 1,000 yard in Singhar Housing scheme was available at Rs1 million but after last one week the price of such plot has reached up to Rs.1.8 million to Rs2 million.

He said that after the formal inauguration of the Gwadar Port the price would further go up in Gwadar. He said that presently 50 private housing and commercial schemes were selling plots and after agreement with the Singapore firm the sale of plots has increased.

The project director of Gwadar Industrial Estate M. B. Magsi also indicated that the real estate business would further flourish in Gwadar as the confidence of the investors was restored after the steps taken by the federal government.

"A large number of industrialists are approaching us for purchase of industrial plots in Gwadar Industrial Estate," he said. Investors from abroad including Dubai have also shown interest in investing in the industrial sector. In view of increasing demand the provincial government is considering to allocate more land for the expansion of industrial estate in Gwadar.

The Dawn.
http://www.dawn.com/2007/02/11/ebr8.htm

 

[Janbaz]

7pc of Gwadar Port income to be given to Balochistan: Ghouri

GWADAR: Federal Minister for Ports and Shipping Babar Ghouri said Friday that seven per cent of the total income of Gwadar Port would be given to Balochistan, whereas, the port jobs from grade one to 16 would given to the people who belong to the province.

He said this while he inaugurated the construction work of Civic Centre in Gwadar.

Federal minister said four-storeyed building of Civic Centre would be completed within 18 months at the cost of 188 million, adding that the building will contain offices of all civic institutions.

“The Gwadar Port civil work has been completed; whereas, the arrangements are being finalized for the inauguration of port by President Musharraf in the third week of March,” Port and Shipping minister said adding that Prime Minister Shaukat Aziz will also attend the inauguration ceremony.

Geo TV.
http://www.geo.tv/geonews/details.asp?id=2264&param=3

 

[Neo]

'Technical education being provided to locals in Gwadar'

KARACHI (February 17 2007): Senator Babar Khan Ghori Federal Minister for Ports & Shipping visited the Gwadar Port and shown satisfaction on the ongoing work there. He said that the development of Gwadar is the development of Balochistan and the progress in Balochistan is the development of Pakistan.

He said that the Gwadar Port would be operational in the 3rd week of March. It has been handed over to Singapore Port Authority. He said Gwadar Port would bring prosperity for the people of Balochistan. It will connect the Central Asia and open new avenues of trade and business in the region.

He said the present government is working to enhance the network of development by launching mega projects in Balochistan. He said jobs are been given to local people. He said technical education is provided to the local people of the Gwadar. At least 120 persons have been trained for this purpose and have been employed so far. The federal minister inaugurated tree plantation campaign by planting date palm tree at Gwadar.

http://www.brecorder.com/index.php?id=529530&currPageNo=2&query=&search=&term=&supDate=