What's new

Breakthrough: Pakistan to award gas pipeline contracts to Russia

v9s

FULL MEMBER
Joined
Mar 28, 2010
Messages
1,248
Reaction score
-2
ISLAMABAD:

Pakistan has agreed to award contracts without bidding for multi-billion-dollar Iran-Pakistan (IP) and Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline projects to Russia, which will also extend financial assistance.


However, in an understanding reached with Russia, Pakistan made it clear that it would award the contracts on government-to-government basis only. Private Russian firms will not be entertained.

“Pakistan’s government will ask the cabinet to waive public procurement rules for award of pipeline contracts to Russia,” a participant of the meeting of Pak-Russia Joint Working Group on Energy told The Express Tribune.

A 15-strong delegation of Russia, led by the deputy minister for energy, participated in the meeting held in Islamabad on Wednesday.

The two sides would sign a memorandum of understanding (MoU) in next two to three months to move ahead with the projects, he said. Third meeting of the joint working group will be held in Moscow in 2013.

The government has already floated tenders, inviting bids for giving contracts for construction and pipeline procurement for the IP project, costing $1.5 billion.

“Russian energy giant Gazprom may also participate in bidding for the engineering, procurement and construction (EPC) contract, which gives an edge to the company that will pledge financing as well,” a government official said, adding Moscow also agreed to finance the rehabilitation of Guddu and Muzaffargarh power plants.

According to sources, Pakistan will submit a draft of agreement for financial and technical assistance for the IP pipeline in 15 days. Though the Russian side assured financial assistance for the pipelines, they did not indicate the amount.

In a preliminary meeting held in Islamabad on Tuesday, the Russian authorities offered cooperation in gas import through pipelines and the Central Asia South Asia (CASA) electricity import project, which would bring electricity from Central Asian states.

Besides Russia, Iran is also willing to provide $250 million on government-to-government basis for constructing the IP pipeline. Pakistan wants $500 million for the pipeline.

Iran has also come up with a plan to lay Pakistan’s portion of the pipeline based on a mechanism called ‘supplier’s credit’, which Pakistan will repay after two years.

Pakistan is also seeking China’s help for the IP pipeline. In a recent visit to Beijing, President Asif Ali Zardari and Adviser to Prime Minister on Petroleum Dr Asim Hussain succeeded in convincing the Chinese leadership to take part in bidding for the construction of the pipeline.

Electricity import

In addition to supporting the gas pipelines, Russia has also expressed its willingness to cooperate in import of 1,000 megawatts of electricity from Central Asia. Leading financial institutions including the World Bank and Islamic Development Bank have committed financial support for the power import project.

Construction of a cross-border transmission line is being considered for creating a dedicated link aimed at supplying surplus hydropower during summer months from Kyrgyzstan and Tajikistan to Pakistan.

Published in The Express Tribune, June 28th, 2012.

http://tribune.com.pk/story/400262/breakthrough-pakistan-to-award-gas-pipeline-contracts-to-russia/
 
.
Good to know, India will trust Russia more with making the pipeline rather then China.

Maybe India had a say who to make the pipeline, as it will be connected with India as well.
 
.
any pipeline that comes to Pakistan has to serve India as well, otherwise it doesnt make much profits for companies to invest. Major population centres are near Indo-Pak border. China knows this. Now that russia went ahead, china will sneak in.
This is good news for Pakistan.. hope this brings peace to troubled region.
 
.
this is only a guideline, hope govs can close the deal in less time. this land can not wait and wait.
 
. .
Good move by Pakistan , and hopefully China will also reap rewards in long run :P

dep_1253206-Heart-Russia-Flag.jpg
 
.
Hope the breakthrough actually transalates into action and Russia does not withdraw after some time - just like they suspended S300 sales to syria.
 
. . . .
Okay Excellent news for the country that the two old rivals are getting closer to each other and developing trust, cooporating in the regional development.......:)
 
. .
Awsome news for Pakistan and the region good move can't wait for it to take place.
 
.
It couldn't get much better than this PAKISTAN steal mills was the last JV they did with us which has supported us in a ginormous way till zardari and his appointed gones ******up every thing but lets see this deal will certainly help us in every energy demanding field

HURRAY TO THE RUSSO-PAK friendship chapter :yahoo:
 
.
The Gas pipeline between Iran Pakistan and India can bring about a great change in our troubled relationships.
However i feel that it may not suit certain lobbies.
Overall I sincerely hope and pray that such projects materialize so that we finally evolve and move towards a secure, stable and peaceful south asia.

Mutually beneficial ventures are the need of the day, let us hope that saner heads prevail and we see this pipeline in our lifetime.
 
.

Pakistan Defence Latest Posts

Back
Top Bottom