Gwadar - A Jewel in the Crown

[Neo]

Rs 25 billion projects to be completed in Gwadar

ISLAMABAD (November 03 2006): Work on plethora of development projects worth more than Rs 25 billion has been expedited in Gwadar aiming to transform it into a modern and developed city equipped with all basic amenities.

The construction of 350-bed hospital with the estimated cost of Rs 550 million, 250 acre sports complex, central park and a number of small recreational parks on western side would be completed within a period of next five years, PTV reported.

Work is nearing completion on two main boulevards of the city, Jinnah Avenue and Awaran Avenue. Numerous under-construction high rise buildings are enhancing the charm of the city and also providing job opportunities to the locals.

The government has recently allocated an additional amount of Rs one billion for expediting infrastructure development ventures being continued on accelerated pace in the city. Likewise an additional Rs one billion has been provided for the Gwadar international airport.

Gwadar Port would also have two modern fish harbours and would soon be the biggest port in the region making Pakistan the maritime hub for the region linking Europe and the West with the Central Asian states.

Planning has been finalised to set up water purification plant having capacity of providing 35 million-gallon clean water to the inhabitants. The government has allotted 2,000 acre of land for establishing Gwadar Industrial state.

 

[Neo]

Chinese firm gets new Gwadar airport contract

ISLAMABAD (November 07 2006): The federal government has decided to award the contract of new Gwadar International Airport (NGIA) to a public sector Chinese company, the China Harbour Engineering Company (CHEC), which will execute the project in the shortest possible time on fast track turnkey basis, official sources told Business Recorder here on Monday.

However, the Civil Aviation Authority (CAA) would be responsible for design review and supervision of the project, ensuring that the new airport is built as per best international practices, sources said.

The airport, which is expected to be a regional hub, would be developed primarily to cater to cargo market, with an investment of $70 million. CAA had invited proposals for project management and design consultants in March. Several firms expressed interest in the project, including CHEC, which also offered to undertake the entire airport project on fast track turnkey basis.

The firm also submitted its proposal to President Pervez Musharraf before his visit to China in June, 2006. Sources said that Defence Ministry examined the Chinese offer and found it to be an attractive proposition. It was also observed by the government and CAA that Pakistan could benefit by the early completion of the project through turnkey/EPC methodology due to its low cost and financing offered by the Chinese firm, they added.

"CAA's analysis of the Chinese offer showed that if it were to undertake the project in the conventional way then it would take 36-42 months to complete it, whereas the completion time given by CHEC is 24 months," sources said.

Other benefits of the offer are that the company is already mobilised in Gwadar and is familiar with the working conditions there. The firm had completed a major reference project in Pakistan--the Gwadar Deep Water Port Phase-I--and has vast experience of undertaking several engineering-based projects including airports (China-Macao-Hang Kong).

With the completion of the project at much earlier date than planned, both CAA and government could benefit from early realisation of revenue. Defence Ministry is of the view that being a State enterprise, the firm is in an ideal position to arrange finances for the project on the same lines as was done in the case of Gwadar Deep Water Project Phase-I ie preferential buyers credit and grants/soft loans.

Sources said that the offer of CHEC has already been approved by CAA Board in its meeting on July 8. In order to move forward, CAA has proposed to enter into a Memorandum of Understanding (MoU) with CHEC. After its signing, the firm would undertake a feasibility study, inclusive of site investigation, necessary surveys, preliminary design, cost estimates etc and finally submit a technical and financial proposal to the CAA.

The CAA would then review the technical and financial proposal to ensure that the requirements of ICAO are satisfactorily met. Once the technical and financial offers are accepted by CAA, the government would be requested to enter into a formal agreement with the firm on price and terms and conditions of the financial offer, as the project is being funded through PSDP.

The Planning Commission has supported the proposal, but it advised MoD to obtain approval of the Prime Minster for awarding the project to the Chinese company. Sources said that the MoU is likely to be signed during the visit of the Chinese President in due course of time.

 

[Neo]

DP World out of race for Gwadar

8 November 2006

DUBAI — DP World is no longer in the race to clinch the contract for Gwadar Port operations in Balochistan province of Pakistan after declining to submit an 'Expression of Interest' following the issuance of the revised tender last month.

"We have looked carefully at this opportunity and have decided not to pursue it," a DP World spokesperson told Khaleej Times yesterday.

According to sources, PSA International of Singapore is still in the race and is considered to be a strong contender for Pakistan's first deep sea port, which is due to become operational by the end of this year after completion of the first phase.

Globe Marine Services of Saudi Arabia, Westport of Malaysia and Pakistan International Container Terminal (PICT), Karachi, are the other pre-qualified and short-listed bidders for the final competition.

The authorities concerned have directed the four pre-qualified port operators to submit their bids by December 4, 2006 to Gwadar Port Implementation Authority (GPIA) so that the handing over of port operations is finalised by the end of December.

According to sources, a policy board headed by the Prime Minister Shaukat Aziz will finalise the port operator after evaluating the bids to be submitted by the short-listed firms.

"The awarding of the concession for Gwadar Port on BOT basis is at an advanced stage and the government will complete the process by the middle of next month," sources said.

GPIA through Lloyds List on October 16 invited Expression of Interest (EoIs) from international port and terminal operators for Gwadar Port. The Authority approved four companies out of a total nine companies who had submitted EoIs within the stipulated timeframe.

Nine companies and consortia, who have submitted EoIs were Port of Singapore Authority (PSA) International Pte Ltd, Singapore; Pembianaan Redzai Sdn Bhd, Malaysia; Globe Marine Service Co, Saudi Arabia; a joint venture of Pakistani and French group-Pakistan International Container Terminal (PICT) and CMA-CGM group, Engro Vopak, Pakistan; National Company, Pakistan; Noor Investment Company, Saudi Arabia; Sea Trade Grains, Pakistan; and Mansour Al Mosal, Saudi Arabia.

The tender committee headed by Farooq Rehmatullah in consultation with Arthur D. Little (ADL), consultants for Gwadar Port, evaluated and short-listed four companies including PSA International, Singapore; Globe Marine Services, Saudi Arabia; Pakistan International Container Terminal (PICT), Karachi; and Westport, Malaysia. "The tender committee will make its recommendation by the December 10 to the Ministry of Ports and Shipping in order to get final approval from the policy board," he explained.

"It is expected that the signing of the agreement for the concession with the successful bidder will be finalised before the close of current calendar year," he said.

In answer to a question about participation of DP World in the bidding process, sources say DP World didn't submit its EoIs in revised tender process.

In answer to a question, he said the agreement would be 40 years lease on Built Operate and Transfer (BOT) basis and three companies would have to be set up to run different operations — port and terminal operations, marine services and free economic zone.

http://www.khaleejtimes.com/DisplayA...=business&col=

 

[niaz]

Good there is a basic conflict on interest. DPA run Jebel Ali and Fujairah.

 

[Neo]

Zaver Pearl Continental inaugurated in Gwadar

KARACHI (November 21 2006): President General Pervez Musharraf, on his recent visit to Gwadar, inaugurated the first five-star hotel, Zaver Pearl Continental, amid great fanfare and celebration.

A project of Hashoo Group, built in record period of two-and-a-half years, the hotel poses richly furnished beautifully decorated 114 guestrooms, including 4 suites, and offering Chinese, traditional and continental food of highest quality.

President Musharraf on this occasion expressed his deep appreciation for Sadruddin Hashwani on his contribution towards the development of human resources not only in Gwadar but in the whole of Balochistan. He called this a momentous achievement by a man who had dared to invest in projects where no other businessman had ventured before.

He also commended the project of a filtration plant, which would provide clean drinking water to the people of Gwadar and the foundation of a high quality educational institute, providing education from primary to secondary level. Both projects were initiated by Sadruddin Hashwani.

The event was well attended by dignitaries from all over Pakistan and from abroad, including the governor and chief minister of Balochistan, federal ministers, secretaries and ambassadors of friendly countries.-

 

[Neo]

Gwadar port to start operation in March 2007

KARACHI: The Gwadar port would be operational in March next year after the completion of its channel dredging, said Minister for Ports and Shipping Babar Khan Ghauri here on Tuesday.

He was talking to reporters after inaugurating development work at Port Qasim and a briefing by the high officials of PQA.

He said the shipping protocol would be signed in December after which the proposed ferry service would start.

He said nine more terminals would be developed at the Port Qasim by 2010. About the twin islands issue, he said it was a joint venture between Emaar and PQA and that there should be no fears about it.

Earlier in the briefing, he was told that the development projects currently underway at the PQA Industrial Estate include construction of flyover at the junction of PQA main access road and National Highway.

A 113-kilometre road is being built to link different industrial zones. PQA access road is being dualized. A bridge is being constructed over Railway line. Water supply system is being laid along with installation of pump houses and construction of underground tanks to ensure efficient water supply.

A 114-kilometre-long storm water drainage is being built besides the construction of 153-kilometre sewerage system.

The projects also include a bridge over Pakistan Steel outfall channel and conveyor belt, a bridge over Pakistan Steel intake channel to serve as an alternate route for heavy traffic and construction of two additional customs gates and allied infrastructure. Besides, poles are being erected to ensure proper lighting at the roads.

With the completion of these projects, PQA will transform itself into a modern industrial port and a business hub, further accelerating industrial and commercial activities, which will help curb joblessness and bring the poverty level down.

With completion of infrastructure projects, a chain of commercial activities will be established, which will help local entrepreneurs with limited capital do business without any risk of loss.

The minister was informed that the PQA has recorded 11 per cent average growth in cargo handling over the last five years. The port accounts for more than 40 per cent of sea-borne trade of the country.

The PQA reduced tariffs by around 16 per cent in 2005 in order to cut cost of doing business. The authority is undertaking many projects at a cost of Rs11 billion, one of which is deepening of the channel to accommodate all-weather 14-metre draught vessels.

The officials told the minister that the authority aimed to focus on cost recovery rather than profit maximisation and reduction of cost of doing business by improving trade logistics to international standards.

 

[Neo]

Gwadar port milestone of time-tested friendship

KARACHI, Nov 25: The Gwadar deep water port project is yet another milestone of the glorious and time-tested friendship between China and Pakistan. The port is expected to start functioning by the end of next month as evaluation process of port operators is in final stages.

Pakistan and China signed the deal to build the $248-million (revised $298 million) deep sea port on the Arabian Sea coast in Southern Balochistan in 2002.

Chinese vice-premier Wa Banggao laid the foundation stone for Gwadar port in March 2002. The first phase of the project was to be completed by March 2005, for which China provided $200 million soft loans and grants and the balance was made available by the government of Pakistan.

After the first Gulf war in 1990, the Asian Development Bank (ADB) strongly felt that some deep water port are baldy needed just out side the Straits of Hormuz from where around 60 per cent of world oil supplies pass. As a result of this hunt Gwadar was selected for being strategically located at the opposite end of the Gulf of Oman but remained on the main shipping route.

The first phase of Gwadar port has been built with the assistance of a public sector Chinese company at a revised cost of $298 million. It included three multipurpose berths (602 metre quay length), one service berth (100 metre length), 4.35km navigable channel which is being currently deepened to 16 metre. Besides, roads, plinths and transit shed, operational craft and equipment, including navigational aids and shore-based port buildings and allied facilities, have been developed.

The government has also finalised arrangements to undertake the construction of second phase of the port in March 2005 at an estimated cost of $865 million. The completion of second phase will also help meet strategic needs and standby facility to Port Qasim and the Karachi Port in case of emergencies.

The construction of second phase will be completed on the basis of build operate and transfer (BOT). However, if the private sector did not respond favourably, the public sector financing will be required to develop the second phase of the port.The port will have far reaching geo-political implications in the region as will open up new vistas and could also change shipping activity to a greater extent. Pakistan is also interested in developing Gwadar not only as a trans-shipment port, but also as an energy port by establishing refineries, building storage capacity (farms) and laying pipeline ensuring secure and reliable supplies to western China and other landlocked countries of the region.

Gwadar could emerge as a key shipping point, bringing Pakistan a much-needed income, and when combined with the surrounding areas could become a trade hub, once road and rail links connect it to the rest of the country, including Afghanistan and Central Asia.

A road from Gwadar to Saindak, which is presently under construction, is the shortest route between Central Asia and the sea. It will provide landlocked Afghanistan and Central Asian states with access to the sea. Oil and gas reserves and other natural resources from these countries could be shipped to global markets through Gwadar port.

Looking at the future prospects the government is also keen to give Gwadar a status of free trade zone and an export processing zone. It will not only give boost to local business and trading activity but will also open up vast employment opportunities for the people of the region, particularly from hinterland which have huge human resource surpluses.

President Pervez Musharraf’s last visit to Beijing reflects the determination of both governments to promote comprehensive cooperation in the field of energy, including nuclear power, as well as realise the concept of building an energy corridor between Pakistan and China.

The current visit of President Hu Jintao is a step forward in achieving these common goals for both the countries. Both the sides have reaffirmed their pledge to further strengthen ties in defence, energy, economic and trade sectors and signed a free trade agreement. Besides, the two sides finalized a five-year joint development programme and signed seven important accords and will set up a joint investment company.

Gwadar Port Implementation Authority (GPIA) Chairman Captain Anwar Shah told Dawn that the success story of the port could well be judged from the fact that leading port operators had shown keen interest in running the port. He said the government had asked these operators to submit their bids by December 4, 2006.

Mr Shah disclosed that within days of receiving bids, the summary would be put before the GPIA board for its approval and thereafter will be forwarded to the ministry of ports and shipping to get ECC approval. He said that first phase of the port was complete and was ready to be commissioned as soon as the port operator was selected as per the laid down terms and conditions in the bid document.

http://www.dawn.com/2006/11/26/ebr4.htm

 

[Neo]

Dubai Ports drops bid to manage Gwadar port

DUBAI, Dec 1: The UAE's DP World has dropped a bid to manage Gwadar port due to commercial reasons, a local newspaper said on Friday. “We have looked carefully at this opportunity and have decided not to pursue it,” Gulf News quoted a Dubai Ports World official as saying.

The deep-sea port, built with Chinese assistance, is on the Arabian Sea, about 120km from the Iranian border.

The UAE company, the world's third-largest container port operator, was one of the bidders for the project alongside PSA International of Singapore, Globe Marine Services of Saudi Arabia and Pakistan International Container Terminal.

 

[Neo]

Sunday December 3, 2006

'Megaport' with no ships rises from sands of Pakistan

GWADAR, Pakistan (AFP) - Conceived as a gateway from China and Central Asia to the warm waters of the Arabian Sea, the Beijing-funded "megaport" of Gwadar is rising from the sands of Pakistan's poorest province.

At the foot of the rocky peninsula that overshadows Gwadar there are 600 metres (yards) of quays and five giant cranes. But with no decision yet on the port's foreign operator, not a single ship has docked here.

Past this brand new deep-water port, an inlet runs for dozens of miles (kilometres) towards the old town and fishing port of Gwadar, whose 100,000 residents have so far seen none of the fruits of the multi-million-dollar development that juts into the Gulf of Oman like a massive hammerhead shark.

And it's going to be a long wait yet.

"Here in 2015 you will see a mature Gwadar," says the proud director general of the Gwadar Development Authority, Ahmed Baksh Lehri.

Towards the eastern bay the authority plans to build a huge extension of the port with industrial and commercial zones, while to the west it envisages luxury building projects and modern infrastructure.

China, a close strategic and economic ally of Pakistan which has already co-built several projects including two nuclear power stations, has financed about 75 percent of the 250 million dollars it has taken to build the port. This will be the "Dubai of the 21st century", says one of the 62 estate agents in charge of renting out more than 1,000 square kilometres (620 square miles) of Baluchistan desert.

In sharp contrast to the enthusiasm of the developers, and others who hope to reap profits from the new port, the locals grumble that nothing has changed for the better since the construction began. Indeed, many complain that things are only getting worse.

So far all there is to show from all the work, investment, disruption and, for some, forced relocation is the construction of an unused port, overlooked by an empty five-star hotel inaugurated earlier in November by Pakistan's President Pervez Musharraf.

"There is no development, no teachers in the schools, no doctors in the hospital, no work for locals," says Niaz Ibrahim, from the Rural Community Development Council, a non-governmental organisation, only slightly exaggerating the paucity of services for residents in the area.

Doctor Aziz Baloch of Gwadar district hospital, which struggles to provide healthcare because it lacks equipment and personnel, complains: "This megaproject is causing nothing but frustration."

Work on the port and surrounding roads has already caused the displacement of some villagers, with varying results.

In Mullah Band district near the port, 37 families have each received between 500,000 and 1.5 million rupees (8,333 to 25,000 dollars) to move six miles north.

Saleh Mohammed, a 26-year-old bachelor, is happy with his compensation as he has been able to build a modern house on the 400 square metres of land he received from the government.

His neighbours Shaban Ayub, 35, and Mohammed Asim, 25, are equally happy with their new neighbourhood.

Nevertheless, as fishermen they have lost their source of work and future income is in doubt. In that, they are not alone.

Grandmother Medina is the matriarch of a family that long relied on the resources of the ocean for income, but all her five sons lost their livelihoods and had to move away to find work once the port development began.

She summarises their worries: "What good is getting a million rupees if you lose your job?"

The story is not the same for all the fishing families of the area.

At the fishing port there appears to be plenty of activity and one fisherman says: "The new port doesn't bother us at all."

Pointing to the fact that the port is not likely to open before the first quarter of 2007, another fisherman shrugs off questions about the impact of the development with a joke: "Of course, there aren't any boats."

He goes on to express his concerns, however, about the security measures, including naval patrols, that the fishermen will have to deal with once merchant ships do start arriving at the new port 300 metres away.

Eventually, the developers says, everyone will have to move.

The Gwadar Development Authority says it has overseen the "gradual and voluntary" transfer of 1,300 fishermen -- 3,000 to 5,000, according to the fishermen themselves -- to the villages of Pishukan and Sur Bandar, at the far ends of the west and east bays, 50 and 25 kilometers away respectively.

Around 100 families have already been forcibly relocated to Sur Bandar.

"They have sent us to a cemetery," laments Jan Bibi, the mother of a family living in a shack erected in one of the many unfinished houses that stand here, shells with rooves but no walls. She says she received no compensation.

"No more villagers will be displaced," says the development authority chief, Lehri, adding: "Our only hope is that people will themselves want to leave congested areas.

"From 100,000 inhabitants today, Gwadar is expected to have 1.7 million in 2030," he says, adding that amid the sands of Baluchistan "everything is yet to be built".

http://au.news.yahoo.com/061203/19/11ndr.html

 

[Neo]

Wednesday, December 13, 2006

Singapore’s PSA makes highest Gwadar port bid

KARACHI: A consortium led by Singapore port operator PSA International has submitted the highest bid to manage Gwadar Port but the tender has not yet been awarded, a Pakistani port official said on Tuesday.

“We cannot give the figure quoted by PSA International until the negotiations are final but they are the highest and the successful bidder,” the official of the Gwadar Port Implementation Authority said, declining to be named. The PSA bid was accepted at the weekend.

Under the concession, the winning bidder will take over the operation and management of the port for 40 years. The port official said the offer from the runner-up - Pakistan International Container Terminal - was ‘far behind’ that of the Singaporean operator. “We are in the process of finalising technical and financial terms and conditions with them and will take a decision very soon,” the official said. Pakistan’s AKD Group is part of the Singaporean consortium.

 

[Neo]

87 societies awarded NOCs for housing in Gwadar

ISLAMABAD (December 16 2006): Some 87 societies owning the required land have been given NOCs for housing projects at Gawadar, the National Assembly Standing Committee on Local Government and Rural Development was informed here on Friday. Director General Gwadar Development Authority briefed the committee about progress of development work in Gwadar.

He told the committee that two projects to desalinate sea water for drinking have also been approved. The meeting, chaired by MNA Maulana Hamid-ul-Haq Haqqani, was informed that around 99 percent schemes of MNAs pertaining to Lesco and Kesco respectively had been completed, while Pesco's representative informed that out of 4,221 schemes 3,308 had been completed and remaining will be completed before the end of March 2007. The SSGPL managing director told the committee that 85 percent schemes of SSGPL given by MNAs had been completed.

Chairman of the Committee, Maulana Hamid-ul-Haq Haqqani, directed the concerned that as per the announcement of President Musharraf in Nowshera the project for supply of gas should be completed and areas like Jehangir Mia Esa, Misriband, Pir Sabak should not be dropped from the project.

 

[Neo]

'ADB to incline foreign investors to invest in Balochistan'

QUETTA (December 17 2006): The Asian Development Bank (ADB) will incline the foreign investors to make investment in Balochistan in various sectors, including power and coal mining. This was revealed by ADB Country Director Peter Fedon during a meeting with Balochistan Chief Secretary K. B Rind here on Friday.

He lauded the Federal and provincial governments' steps for development of Balochistan, and said those steps would soon transform Balochistan into a hub of trade activities that would consequently boost the trade relations between Pakistan and the neighbouring countries, including Afghanistan, Iran and Central Asian Republics (CAR).

He expressed his satisfaction over uplift schemes in health, education and social sectors and assured more ADB assistance to the province in these sectors.

The Chief Secretary, on the occasion, informed the ADB Country Director about the development projects and law and order situation in the province, and said the provincial government was jointly working with the ADB and other organisations as development partners.

The government was paying special attention to promotion of fisheries and tourism sectors, while steps were also being taken to impart technical education to people, he said, and added that national and international highways were also being upgraded.

http://www.brecorder.com/index.php?id=508767&currPageNo=1&query=&search=&term=&supDate=

 

[dabong1]

Pakistan always has really good plans but when it comes to implementation that is when the problems happen.

How many balouchs are going to get jobs there or be able to afford to buy the luxury villas and apartments.

I think the money would have been better spent on health and education of the balouch people and made Gwadar a private enterprise .

 

[Neo]

Iran to use trade corridor for access to Chinese market

ISLAMABAD (December 20 2006): Iran would use National Trade Corridor (NTC) of Pakistan to get access Chinese market for imports and exports, said Deputy Iranian Commerce Minister, Dr Sadegh Mofattah.

"Iran can use Pakistani ports and land routes not only to get access to the emerging market of China but also the Far East countries for the exports of its products," the Iranian minister said while addressing a press conference at Iranian embassy here on Tuesday.

'Similarly, Pakistan can also use Iranian routes to approach markets of Central Asian states for transportation its goods," he added.

At present, Pakistan, which is the major rice exporter to Iran, is exporting over 200,000 tons of rice to Iran but it can be increased to 400,000 or 500,000 tons, as Iran's local produce is not sufficient to meet its domestic demand, he said.

When asked about the Iran-Pakistan-India pipeline, he was quick in responding that it was not in its purview, however, talks of working group on construction of the pipeline are under way in Tehran.

About the trade potential of the two neighbouring Islamic countries, he observed that it could be increased to $1 billion level in the coming years, as both the countries are heading to sign FTA.

http://www.brecorder.com/index.php?id=509551&currPageNo=1&query=&search=&term=&supDate=

 

[TomCat111]

Singapore to run Gwadar port

ISLAMABAD, Dec 22: The government has decided to give the management control of the Gwadar port to Port of Singapore from next year, a minister said on Friday.

“Today Prime Minister Shaukat Aziz approved a summary to hand over the management of Gwadar port to Port of Singapore,” Ports and Shipping Minister Babar Ghauri told AFP.

“We have formed a committee which will negotiate with Port of Singapore and within 15 days the port would be handed over to them,” Mr Ghauri said.

He said the port was expected to be in operation in March.

Mr Ghauri declined to give details about the financial aspects of the deal.—AFP