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Govt chalks out plan for early construction of Gwadar deepsea port

LAILA A ALI

QUETTA: The present federal government has worked out a mechanism for an early construction of a deepsea port at Gwadar to provide warehouse, transshipment and industrial facilities for international import-export trade and commerce by Pakistan with the Central Asian states, Afghanistan, Gulf states, East Africa, Red Sea countries and north west India.

An authentic source told a select group of journalists here on Saturday that under the new mechanism, the project would be completed in two phases.

The first phase of the project would be under public-private partnership outside the Public Sector Development Programme (PSDP). Under the first phase, funds would be arranged from various organisations, on equity share basis and through foreign loans and suppliers credit.

The source said that the Gen Pervez Musharraf government has now accelerated its efforts for such foreign loans and suppliers credit. China, several other far eastern countries, middle eastern states, Europe and America are said to have responded favourably to investment in the construction, maintenance and operation of the Gwadar Deepsea port along the Balochistan Coast. At home the public sector agencies lined up so far include the Karachi Port Trust and the Pakistan State Oil.

Moreover, Balochistan government would provide 18,000-ha of free land for the project. Wapda, and National Highway Authority, would build an inter link road connecting Gwadar with Rattodero (Sindh) Indus Highway, for overland international and national trade and traffic. The cost of the first phase has been estimated at moreover Rs 8,080 million. The cost excludes duties and taxes to keep it within the range of construction on schedule. On completion of the first phase the Gwadar Port would accommodate vessels of 50,000 tonnes (DWT). The cost of the project, source said, is however, expected to exceed its present estimates, because the military government believes that there should be no special exemption from duties/taxes, for the Gwadar Deepsea Project. The present government is of the view that same standard terms as are available in the current investment policy should be applicable to the Gwadar Deepsea Project.

Asked when the tenders for the first phase of the project would be invited, the source said, that tenders, as a matter of fact, had already been invited. Tenders cost Rs 3.5 billion for dredging have also been finalised. Work is likely to be awarded to the Chinese Harbour Engineering Company for the first phase.

Asked also about the second phase, the source said, it would be taken up at an appropriate forum subsequently. Work on the first phase, they added, would be undertaken during the FY 2000-2001.