ISLAMABAD, 22 January 2007 — The Gwadar Port Implementation Authority (GPIA) and the Port of Singapore Authority have finalized terms of an agreement under which PSA will invest $550 million in five years to make the port functional and expand its infrastructure.
Pakistan government last month selected PSA out of four international seaport operators to run the strategic Gwadar deep seaport, which has the potential to become hub of trade and commerce in the region.
According to official sources the two sides agreed on 17 terms of the deal in two days of talks. The PSA negotiating team expressed complete satisfaction over the cooperative manner and cordial atmosphere in which the parleys were held.
They said that terms of the concession agreement relate to the establishment of a free trade zone, duty exemption for 20 years, development of infrastructure, PSA’s right to tariff, land acquisition and sharing of profit.
They said that prior to the signing of the “Concession Agreement” that is scheduled for tomorrow, Prime Minister Shaukat Aziz will preside over a meeting of the Gwadar Port Policy Board, which will also be attended by ten federal ministers. The meeting will approve the deal.
Sources said that PSA will make the port functional by March 23, 2007, when President Musharraf will inaugurate the port with the arrival of a merchant ship.
They said that PSA will run the port with three companies i.e. Marine Security Co., Business Co. and Business Development Co. while GPIA will act as a facilitator for these activities.
The sources said that the PSA was selected because of its international standing, sound financial position with a vibrant cluster of maritime activities and technical and management skills.
Singapore merchant fleet is the largest in Asia and fourth largest in the world and spearheads attractive programs for maritime industry. It is noted for its wide range of maritime services, including pilotage, towage, heavy lift services, offshore support, salvage work, freshwater supply, crew change, ship supplies and slop disposal.
13 Killed in Clashes
Thirteen people were killed when armed tribesmen from two militant outfits — Lashkar-e-Islami and Lashkar-e-Ansar — clashed in the semi-autonomous tribal area. The fighting broke out after the two groups failed to iron out their differences at a jirga (tribal meeting) in the morning. Gunmen from the two groups fought pitched battle in Tirah, a town in the Khyber Agency.
Meanwhile, a bomb exploded near a police pickup truck patrolling a road in northwestern Pakistan yesterday, wounding three policemen, an official said.
