Infrastructure and Transport News

[Neo]

PR plan to buy China engines under scrutiny ​

Thursday, November 13, 2008

ISLAMABAD: Pakistan Railways’ plan to purchase 75 Chinese locomotives for Rs8 billion has come under fresh scrutiny after Federal Railways Minister Ghulam Ahmed Bilour was informed that out of 20 locomotives purchased in 2005 by Malaysia from the same company, 15 were abandoned within 30 months.

Top railway officials have presented to the railway minister an investigative report published by a Malaysian newspaper, which quoted top government officials as saying that a contract for procuring 20 locomotives for Malaysian railways from the Chinese company proved a nightmare as more than 80 per cent of these locomotives were completely scrapped because of inferior quality and excessive weight.

According to sources in the Ministry of Railways, the minister, after assuming charge, had met both old and new technical committee members to get their comments on the issue.

Railways Secretary Kashif Murtaza, who is also the PR chairman, had dismissed the old technical committee.

According to official documents, the previously procured 69 locomotives from the same company have caused a serious problem to the country’s railway system due to cracks in engines, damage to railway tracks and consistent maintenance on a daily basis.

Sources said the minister would take further presentation from the technical officials on Thursday in Lahore.

 

[Zaheerkhan]

PR plan to buy China engines under scrutiny ​

Thursday, November 13, 2008

ISLAMABAD: Pakistan Railways’ plan to purchase 75 Chinese locomotives for Rs8 billion has come under fresh scrutiny after Federal Railways Minister Ghulam Ahmed Bilour was informed that out of 20 locomotives purchased in 2005 by Malaysia from the same company, 15 were abandoned within 30 months.

Top railway officials have presented to the railway minister an investigative report published by a Malaysian newspaper, which quoted top government officials as saying that a contract for procuring 20 locomotives for Malaysian railways from the Chinese company proved a nightmare as more than 80 per cent of these locomotives were completely scrapped because of inferior quality and excessive weight.

According to sources in the Ministry of Railways, the minister, after assuming charge, had met both old and new technical committee members to get their comments on the issue.

Railways Secretary Kashif Murtaza, who is also the PR chairman, had dismissed the old technical committee.

According to official documents, the previously procured 69 locomotives from the same company have caused a serious problem to the country’s railway system due to cracks in engines, damage to railway tracks and consistent maintenance on a daily basis.

Sources said the minister would take further presentation from the technical officials on Thursday in Lahore.

Why pay so much and go for bad Chinese engines, when you have one of the world's largest railways next door and can buy better locomotives at a cheaper price and save some $$$$...???

 

[fatman17]

New China-Pak N-cooperation need approval from NSG: US

Sridhar Krishnaswami

Washington, Nov 21 (PTI) The US has asked China to halt its plan to construct two more nuclear reactors in Pakistan and indicated that any new Sino-Pak cooperation in the atomic field would require "consensus" approval from the NSG, a "difficult" task to achieve.

"Although Pakistan's energy needs are real and increasing, we believe Pakistan's proliferation record would make NSG consensus difficult were China to request an exception," State Department Assistant Secretary for Legislative Affairs Matthew Reynolds said in a letter to Democrat Congressman from Massachusetts, Edward J Markey.

Reynolds said Washington has already communicated its "position clearly" to Islamabad and Beijing that the proposed cooperation between the two countries to construct two more nuclear reactors in Pakistan should not move forward.

"We have communicated our position clearly to our Chinese and Pakistani interlocutors at multiple levels in Washington, Beijing, and Islamabad, and have made plain our view that proposed cooperation on Chasma III and IV should not move forward." The US position is that cooperation on the construction of two new reactors, Chasma III and IV, would be inconsistent with the commitments China made at the time of its adherence to Nuclear Suppliers Group (NSG) guidelines in 2004.

"We also have been in contact with other NSG members, a number of whom have expressed similar concern at the recent reports," the State Department said in the letter, which was made public today.

Reynolds also said that the US has sought and continue to seek clarification from Islamabad and Beijing on this matter. PTI

 

[Neo]

KPT handles 12.94 million tons cargo​

KARACHI, Nov 21: The Karachi Port handled 12.94 million tons or 12.72 per cent more cargo during the first four months of the current fiscal year (2008-09), compared to 11.48 million tons handled during the corresponding period of last year.

According to official figures, there was a substantial increase in the number of vessels called at the port during the period under review.

A total of 735 ships were handled during July-October as against 652 ships handled in the same period last year, showing an increase of 12.73 per cent in ship handling.

Similarly, container handling also increased from 374,653 TEUs to 413,384 TEUs, showing an increase of 10 per cent as compared to the corresponding period of last year. This means that daily cargo handing (import and export) increased to 105,209 tons during July-October period of the current fiscal year from 101,620 tons of the corresponding period of last year.

The Karachi Port handled 37.2 million tons cargo during the last fiscal year (2007-08) compared to 27.7million tons handled by Port Qasim.

However, when performance of both the ports is compared with regional ports, it is pathetic and it could easily be stated that they are victim of lethargy and inefficiency, ports and shipping experts said.

 

[Neo]

Foreign companies agree to establish $ 2 bln infrastructure fund in Pakistan​

ISLAMABAD, Nov 26 (APP): Federal Minister for Investment Senator Waqar Ahmed said Wednesday that the foreign investment companies operating in the country had agreed to establish an infrastructure fund amounting to $ 2 billion.

“This amount will help boost economic activity in the country,” he said after a dinner meeting, he hosted in honour of representative of different foreign investment companies here.

He said his ministry was working on a comprehensive investment strategy and expressed the optimism to fetch share from different countries, especially from China and Middle East states.

The minister said he would encourage foreign investors to come forward to benefit from investment friendly policies of the government. Pakistan has great potential, especially in agriculture, livestock, power sector and oil and gas exploration, he added.

He said the ministry of investment would work as a facilitator and remove bottlenecks and ease the official procedure.

Earlier, the representatives of the foreign investment companies assured the minister of their full cooperation and said they would try to bring other investors of their respective countries to Pakistan.

The meeting was attended by Senior Vice President Arif Habib Group Khursheed Zafar, Managing Director Pak-Libya Holding Company Kamaluddin Khan, Managing Director Pak-Oman Investment Company Zafar Iqbal, Managing Director Pak-Kuwait Investment Company Istaqbal Mehdi, Managing Director Pak-Brunei Investment Company Ayesha Aziz, Deputy Managing Director Pak-China Investment Company Syed Iqbal Asharaf and senior government officials.

 

[Neo]

CDA to hire consultants for Margalla Tunnel's feasibility study​

ISLAMABAD (November 27 2008): The Capital Development Authority (CDA) would shortly hire the consultants to conduct the feasibility study of Margalla Tunnel Project to evaluate the pros and cons of the project. "It is too early to say anything about the project before a feasibility study is conducted to evaluate all aspects of the project with particular focus on the environmental, cost, engineering, social and economic impact," said a senior CDA official Wednesday.

He said the Authority would soon hire NESPAK or any foreign consultant, to conduct the feasibility of the project but hoped that it would be okayed as the Authority would take all measures to protect flora and fauna of the Margalla Hills.

According to the proposed plan, the tunnel would link federal capital with Haripur, proving easiest access to the Northern Areas of the country, opening new scope for real estate market and boosting business activity on both sides.

The official admitted that the project was shelved after controversy between the Authority and environmentalists but the new CDA chairman announced that the project would be executed without further delay as it would also provide the residents cheaper housing facility on the other side of Margalla Hills.

"The project becomes more essential owing to the prevailing shortage of over 50,000 housing units as the project would help the residents of federal capital to avail housing facility at far lesser rates. According to the official, the project was opposed by CDA-hired consultant in its report in 2005, but the official said this time, the Authority has selected some points providing shortest way to Hazara Division.

"It would be two or one and half kilometer from Islamabad. We have pointed out two spots, one near Bhara Kahu and other near Margazar Zoo. These points are far nearer than those were selected previously," said the official.

Chairman, CDA, Tariq Mehmood Khan, said that the tunnel project would not have drastic impact on the natural beauty of Margallla Hills as the Authority would spend more than ten-time on the environmental beauty than the loss reached to it during the execution of the project.

He further said that the tunnel would be as wide as having four-lane road and providing space for rail link and mono-train in future, and hoped that if all things go smooth, the project would be executed within two-year period. He said the project would also be discussed with the top slot to get green signal in this regard.

According to the CDA's master plan for the Islamabad Capital Territory, the hills are a national park area since they are an extension of the Himalayan range and the northern boundary of the Potohar plateau and there are also some 82 bird species in the area. Many reptiles are also found in this area including the Russell's viper, Indian cobra and saw-scaled viper.

 

[Neo]

Infrastructure maintenance: Pakistan spends below three percent against eight percent in Asia​

LAHORE (November 30 2008): Pakistan is lurking much below on the spending yardstick for maintenance and repairing of existing infrastructure in the Asia where majority of countries spend 8 percent of the total cost of the asset annually against less than 3 percent in Pakistan, causing a big blow to the growth of overall economy here.

Since a major chunk of the infrastructure development work in Pakistan depends upon the lenders' releases, often disrupted due to one or the other reason. Therefore, a constant deadlock is the hallmark of the infrastructure set up in Pakistan where the scarcity of funds has put the maintenance and repair of existing infrastructure on priority than rapidly building up new infrastructure assets.

Particularly, the recent energy deficiency has hit the national industry hard, which has experienced the worst-ever load shedding throughout the calendar year 2008 due to snail pace work on developing new energy resources. To cover the ugly face of country's infrastructure, the planners have chosen a short cut of concentrating on major cities like Lahore and Karachi, the provincial capitals, for launching new infrastructure projects.

This approach is supported through the argument that the existing infrastructure in major cities would be choked down in the absence of a timely expansion. But no serious attention is given to country's 80 percent rural-based population living in abject poverty generation after generation where members of national and provincial assemblies are siphoning off development funds under the garb of street soling and drainage.

To add fuel to the fire, the vindictive mindset of political leadership proves last nail to the coffin, hampering again the growth of infrastructure development in Pakistan.

Just to have an idea of this mindset, one may give a serious attention to the Punjab government sources who pointed out in a dejected tone that the Chief Minister Punjab Shahbaz Sharif has put the project of Lahore Rapid Mass Transit System (LRMTS) on the backburner despite a heavy spending of Rs 1.0 billion on its designing by the previous government of Chief Minister Chaudhry Parvaiz Elahi.

Instead of asking for speed up the development work, according to the sources, the Punjab Chief Minister has directed an evaluation of the project before proceeding any further on the project. Fears are getting high with every passing day that the spending of Rs 1 billion from the public exchequer would go unnoticed if such unnecessary delays are attributed to the fate of the project.

Interestingly, the Chief Minister Shahbaz Sharif had himself initiated the idea of LRMTS back in 1996-99. However, further development took place the regime of Chaudhry Parvaiz Elahi. Now when the policy makers are pulling a long over shelving of the LRMTS, the Chief Minister Punjab has initiated another Rs 50 billion idea of Lahore-Rawalpindi Elevated Express Highway while desiring from the infrastructure planners to put all their energies to make it a success story. It may be noted that the Punjab government is already executing Rs 100 billion Ring Road project, a major spending of which is again on the provincial capital.

Therefore, a total spending of about Rs 150 billion on developing infrastructure of Lahore and areas adjacent to it has resulted into a deep sense of deprivation among under developed regions of the province. The planning developers of the province are of the view that one major reason behind this deprivation is the highly selfish approach of the public representatives from those regions.

It is worth noting here that the road development fund allocated for the whole Punjab for 2008-09 is Rs 18 billion, out of which Rs 13 billion is to be spent on maintenance and repairing of existing roads, Rs 2 billion for new roads and Rs 3 billion to appease the MNAs and MPAs.

 

[Neo]

IT Tower construction: Punjab government's rejoinder to Pervaiz Elahi​

LAHORE (November 29 2008): A spokesman of Punjab government has reminded Chaudhry Pervaiz Elahi that the Chinese company, engaged in the construction of IT Tower, has stopped the project before the present government came into power due to impractical nature of the agreement which the Elahi's government had signed.

Moreover, the construction of a huge building in the middle of the city would have been of no use to the information technology (IT) sector, he said, adding it seemed that the project was aimed at real estate business rather than promotion of IT sector.

In a rejoinder issued on Friday, he said that IT parks were set up the world over on large areas so that they could be expanded for future needs. The spokesman further said Pervaiz Elahi's statement that the efforts of Punjab government to attract foreign investment had failed, was perhaps motivated by his own experience.

He said the fact was that the planning and focus with which Punjab Chief Minister Mian Muhammad Shahbaz Sharif had undertaken the visit resulted in far greater success than Chaudhry Pervaiz Elahi could have imagined. He said that the Singaporean experts left the project when Elahi's government failed to control law and order and Pervaiz Elahi was trying to hide his own failures.

He further said that Chinese experts were made all payment for the contracts signed during the tenure of the last government. However, due to non-feasibility of the project, the cost of expenditure of Chinese company had increased tremendously and consequently the Chinese companies had to make request for more funds from the government.

The spokesman further said that the Punjab Chief Minister, P in view of Sino-Pak friendship, had assured the chairman of the Chinese company that the Punjab government would extend all out help to him, upon which he reposed full confidence in the Punjab Chief Minister and left this issue to the discretion of the chief minister, and assured that any decision of the Punjab government would be acceptable to the Chinese government.

The spokesman said that by using such terms as rage and wrath, Chaudhry Pervaiz Elahi had shown a highly irresponsible attitude, which did not behave a senior politician like him.

He said that the Punjab government was still trying to cope with the administrative and financial mess created during the tenure of Elahi. The spokesman said that Elahi's assertion that the Chinese company had registered a claim for Rs 1.15 billion was totally baseless and concocted as no such case was being heard in any court.

The spokesman said that as far as the setting up of IT park was concerned, it was totally against the statement of Chaudhry Pervaiz Elahi. He said the Punjab government and Shenzen government had not only agreed to set up IT park, but mayor of Shenzen X.UZU Zong Hong, during the luncheon, gave the task of drafting of a memorandum of understanding (MoU) by Chinese experts and the Punjab government, which was signed by representatives of both the governments.

He said that it showed the seriousness of Shenzen government in the project. The spokesman expressed the hope that Pervaiz Elahi would look into the facts before issuing such statements and instead of negative criticism would show a positive attitude.

 

[Neo]

PIA to recover Rs 38 billion losses soon: managing director ​

LAHORE (December 02 2008): Pakistan International Airline (PIA) Managing Director Captain Muhammad Aijaz Haroon has said that PIA would soon recover its accumulated losses of Rs 38 billion. He was addressing to the oath taking ceremony of the newly elected office-bearers of PIA Senior Staff Association (PIASSA), Lahore Zone, a spokesperson of PIA said here on Monday.

The MD said contract officers of the PIA would be regularised by the end of December 2008, while the pension of the retired PIA employees would be raised. He said the salaries of PIA officers would be increased as soon the airline's finance improve, adding that a policy was being formulated to ensure merit and transparency in the recruitment under the PIA employees' sons quota.

In response to the demands of the new office-bearers of the association, the MD assured that matters pertaining 50 per cent discount in the aviation courses fees for children of the PIA employees would be done in accordance with the prescribed rules.

Aijaz Haroon also advised the national airline's employees to abstain from putting political pressure on the management for promotion in their services so as to maintain seniority of their colleagues. To another demand about establishment of a PIA Training Centre (PTC) in Lahore, the MD said Karachi's training centre is for the entire country, however there is dire need to revise its courses by incorporating in it the modern aviation techniques and skills.

He assured the employees that he would make every effort with regard to provision of maximum facilities to them, and they must discharge their duties with utmost devotion and sincerity for the development of the airline.

The new office-bearers of the PIASSA included President Ghazanfar Bashir, SVP Athar Hasan Awan, VP Ziauddin Rana, General Secretary Sohail Mahmood, Organising Secretary Mian Muneer, Finance Secretary Syed-uz-Zaman Mufti and Joint Secretary Muqddas Anwar Butt. The PIASSA Central President Abid Saleem Khan and the Lahore Zone's President Ghazanfar Basheer also addressed the ceremony attended by a large number of PIA employees.

 

[Neo]

Rs 520 billion to be spent on National Trade Corridor by 2012 ​

ISLAMABAD (December 05 2008): The government would spend Rs 520 billion by 2012 to develop National Trade Corridor (NTC) to boost trade activities and exports. A source in the Ministry of Communications told newsmen here on Thursday that the NTC would link upper parts of the country in the North with ports in the South to reduce travel time and fuel cost by improving existing road network and introducing new highways and motorways by 2012.

The development of NTC would cause multi-faceted benefits, reduce the losses and significantly contribute to the national exchequer, he added. On completion of the NTC by 2012, the cargo travel time from Karachi to Peshawar would be reduced from 72 hours to 36 hours, and road losses would be reduced to the tune of over one billion dollar per annum which would reduce annual transportation cost by 10 percent, the source added.

Talking about steps being taken for development of road network, he said 600 kilometres portion of Karakoram Highway was being upgraded and expanded by Chinese help with the cost of 350 million dollars.

He said the main artery and the main North-South Corridor linking Karachi with Torkham on Pakistan-Afghanistan border via Lahore, Rawalpindi and Peshawar the National Highway N-5 was the mainstay of the country's road network and its economic lifeline.

The Great Trunk Road N-5 has been converted into a dual carriageway and it is being rehabilitated on priority basis. Similarly Indus Highway (N-55), which is on the left bank of the Indus River, is also being constructed according to the specifications of the Asian Highways recommended by the Asian Development Bank. After construction of the Kohat Tunnel, N-55 was set to play a vital role not only for Pakistan but for inter-regional connectivity also, he added.

The transport cost of trade goods would be reduced through restructuring and modernisation of railway under the NTC programme, which will contribute in terms of saving of two to 2.5 billion dollars per year.

The administrative measures, reducing documentation would result in saving of 1.2 billion dollars per annum, he said. He said the modernisation of existing trucking fleet was also planned, which would reduce fuel import bill by 25 percent and road maintenance cost by one billion dollar.

 

[fatman17]

Zorlu installs first wind turbine in Pakistan

Thu. December 04, 2008

Karachi, Dec 04, 2008 (Asia Pulse Data Source via COMTEX)On Wednesday night first turbine of wind energy was installed in Pakistan in Jamphir, Sindh, which is fully complete and totally renewable while it will start generating power within this month.
CEO of M/s Zorlu Enerji Group, Murat Sungur Bursa said this at a press conference arranged by Board of Investment (BOI) in collaboration with M/s Zorlu Enerji Pakistan Limited (ZEPL) at a local hotel on Wednesday.

Arif Elahi, Director General, BOI Karachi, Mehboob Haq, Investment Advisor, BOI, Muslim Abbassi COO, Provincial Committee on Investment and Director Alternate Energy Development Board Nazir Ahmed Soomro were also present on the occasion. In Pakistan 30% of the peoples dont have any accessibility to electricity, said Murat Sungar.

This step would usher an era of investment in very important area of energy in Pakistan and this region, he added. The turbine is 100 meter high and Zorlu Energy Group will build first wind farm in Pakistan which after the completion of first phase by January 2009 provide electricity to 60000 households, he said.

The plant will reach a capacity of 50 MW in the second phase with plans to increase the capacity up to 300 MW, he said. Zorlu Energy group will then be providing electricity comparable to the generation capacity of the Kanupp nuclear plant in Pakistan with totally green, totally renewable and totally indigenous resource, he added.

The investors face problems of high political risk, social unrest, rise of exchange rate, terrorist attacks, natural disasters and other risks in Pakistan, said Murat. But there is no safe haven on this piece of earth and one could be subjected to natural or manmade disaster, he added.

Murat Sungur Bursa said that economic and investment environment in Pakistan is improving and the country has a vibrant economy. He said that the country needs energy as blackouts have been in half of the country.

He said that Pakistan has its strategic importance and the bureaucracy is very friendly in this country while there is a transparent regulatory environment. He said that the infrastructure available is well developed for the energy production and the country has high calibre trained manpower.

There is a fundamental need of present gap and growth demand of electricity, said Murat. He added that power policy offers liberal incentives and there is a competitive return on investment.

Murat said that standardized and tested agreements are done between the government and his company for the investment. He added that Pakistan has one of the best and unexploited wind potential in the world.

Murat said that the company gives commitment for the renewable energy investment. He added that Pakistani government is trying to pursue renewable energy investment.

The total generation of energy in Pakistan is 20 thousand Mega Watt out which 61 % is produced by public sector and 39 % is produced by private sector, said Bursa. There is a huge demand for the new energy generation in the country, he added.

In almost every developing country the energy demand is little over GNP per capita income while in developed countries it is not the case, said Bursa. He exemplified that if Pakistan wants to maintain 6 to 7 percent GNP rate then it would require 8 percent of energy.

He said that NDTC would purchase the power generated form them.

Director General BOI, Arif Elahi said that Pakistan would generate 700 MW in coming five years through wind energy. Pakistan could produce 50 MW energy from the coastal belt of 750 kilometre if it invests in wind energy sector, he added.

He informed that as part of its first phase Zorlu Enerji Pakistan Limited (ZEPL) has commissioned one turbine with a capacity of 1.2 Mega Watt (MW) and the other four turbines would be commissioned by the end of December, 2008 hence providing 6 MW of energy for the first phase.

The second phase which includes installation of 29 turbines with a capacity of 44 MW is expected to be completed till December, 2009, he said. The power generated from the first phase would be evacuated to the Jhampir Grid Station by HESCO, he said. All the equipment for the first phase of 6 MW including the towers, rotors, transformers and other auxiliary equipment has been transported to the site, he said.

While commenting on the background of the company Elahi said that Zorlu Holding is one of the largest and leading groups in Turkey and it has been active in the energy sector through the nine companies of the Zorlu Energy Group since 1993. Despite global economic uncertainties/turnaround Pakistans economy has been able to attract a FDI of US $ 1.321 billion in the current fiscal year (July-October) reflecting investor confidence, said Elahi while commenting on the overall investment climate.

For full details for ZRLUF click here.

 

[Neo]

Lack of infrastructure impeding Gwadar Port’s functioning ​

Saturday, December 06, 2008

ISLAMABAD: Lack of complete road connectivity at certain points, absence of will on the part of some federal authorities and strong opposition from the “Karachi lobby” are principal stumbling blocks in the way of making the Gwadar port operational, official sources revealed on Friday.

“There has not been much movement forward on making flawless road link between Gwadar and Ratodero in Sindh and completing its connectivity with some parts of Balochistan,” a senior official told The News.

He admitted that Karachi Port and Port Qasim were too overburdened to take the entire load. The result, he said, was that not only some government departments but also private importers and exporters had to pay a sizeable demurrage every year. For example, the source added, the Trading Corporation of Pakistan (TCP) had to shell out $1.8 million in demurrage last year. Another official said the incumbent Balochistan chief minister had urged the federal government to do away with the obstacles to operationalisation of the Gwadar port so that the province could get its benefits.

The official said the present road infrastructure starting from Gwadar port was not in a position to bear the brunt of heavy trucks laden with goods. He observed if trucks did not carry goods up to their capacity, it would not be a viable proposition for them, considering the expenses incurred on transportation.

But Port and Shipping official told the correspondent that ‘Karachi lobby’ within the bureaucracy and the business community was poised to confine imports and exports through Karachi, arguing it was not feasible for businessmen to foot the hefty bill of transportation from Gwadar.

Last week, the government announced it would start huge exports and imports of commodities like wheat, fertilisers and cement through port. But informed officials did not see the announcement being translated into reality in the near future.

One source said there was no reluctance on the part of Port of Singapore Authority International (PSAI), selected as the operator of the Gwadar port, to undertake the job. “There is no doubt that PSAI is ready to operate, but the government needs to do what it is required to do so that the Singaporean company starts its work.”

The PSAI is to invest $4 billion in phase two and three to complete new berths while the China Harbour Engineering Company (CHEC) executed the first phase. The PSAI is a global leader in the port and terminus business and operates 20 port projects in 11 countries, including Singapore, Belgium, Brunei, China, India, Italy, Japan, the Netherlands, Portugal, South Korea and Thailand.

Kyrgyzstan Ambassador to Pakistan Nurlar Aitmurzaev, in a recent meeting with Ports & Shipping Minister Nabeel Gabool, said that his country was interested in availing the Gwadar port facility as well as having a terminal there. The Gwadar port is the closest to Central Asian Republics (CARs).

Officials conceded Pakistan had suffered losses of billions of dollars due to the delay in making the Gwadar port operational. The project faced an inordinate delay for a variety of reasons. One of the reasons was the late execution of some projects by Pakistani contractors.

The Gwadar port is the third deep seaport in Pakistan after Karachi and Port Qasim. As compared to the Karachi Port and Port Qasim, which operate on a royalty basis, the selection of PSAI for Gwadar is on the basis of a gross revenue-sharing formula.

 

[Neo]

Multi-billion rupees Railways project put on ice​

ISLAMABAD (December 06 2008): The Ministry of Railways' multi-billion rupees plan to replace 'old and obsolete' signal gear from Lodhran-Khawnewal-Shahdara bagh main line section has been put on ice after United States embassy in Islamabad challenged the tender awarding process, official sources told Business Recorder.

The project was initially approved on February 6, 2008 at a cost of Rs 10.721 billon with a foreign exchange component (FEC) of Rs 7.989 billion. Sources said that tender committee of Pakistan Railways had finalised the tenders on the basis of recommendations of the committee constituted by the Central Development Working Party (CDWP) to look into the rationality of rates and scope of work.

They said that the Executive Committee of National Economic Council (Ecnec) which met on November 6, 2008 has been informed that the US Councillor expressed reservations on the transparency of the tender awarding process.

"Technical irregularities were committed in this case, and the real issue was that tenders for two contracts were invited, and both contracts were amalgamated and awarded to one bidder, later on, sources quoted US Economic Councillor as saying in a letter to the federal government.

Sources said that Ecnec deliberated on the issue in detail and observed that the contract was controversial, and may require re-bidding. The committee, after taking into account all aspects of the tender awarding process, decided to defer the project with the direction that the whole matter be thoroughly re-examined by the Minister for Railways in conjunction with the Planning Commission, as it involved a violation of the earlier decision of the Ecnec. Minister for Railways Ghulam Ahmad Bilor, who has been assigned the responsibility of investigation into the 'fraud tender process', was not available for comment.

 

[Neo]

$1 billion needed to build underground storage for imported gas ​

ISLAMABAD (December 07 2008): Pakistan will require one billion dollars to build underground storage to store gas to be imported from Iran and Turkmenistan. Sources in Petroleum Ministry revealed to Business Recorder on Saturday that Asian Development Bank (ADB), in a joint study with Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), had disclosed that the proposed underground storage would cost one billion dollars to store gas imported from Iran and Turkmenistan.

The ADB has also noted that Sindh is the most suitable province as far as geographic, political and law and order situation is concerned. However, the work on the underground gas storages, sources added, would be initiated after gas import deals with Iran and Turkmenistan matured.

According to the sources, the government has already reconstituted a sub-committee of the Economic Co-ordination Committee (ECC) of the Cabinet that has a mandate to oversee Iran-Pakistan-India (IPI) gas pipeline and Turkmenistan-Afghanistan-Pakistan-India (TAPI).The committee will also monitor the underground gas storages project.

Sources said that SNGPL, SSGCL and ISGCL would be involved in building three to four underground gas storages to store imported gas from Iran and Turkmenistan. Pakistan will import 2.2 billion cubic feet gas from Iran, out of which Pakistani share stands at 1.05 billion cubic feet. If India does not join the project, Pakistan would consume the entire amount, i.e. 2.2 billion cubic feet.

Pakistan will import 3.2 billion cubic feet gas from Turkmenistan and this gas would be shared equally by Pakistan and India. Sources said that Pakistan would also need underground storages for gas reserves and the gas would be supplied to different areas of the country from these underground gas storages.

Pakistan and Iran have currently entered a dispute over the gas price that is the big hurdle to make further progress on the IPI gas pipeline project. The sources further said that Pakistani and Iranian officials were expected to meet soon in Tehran to resume dialogue on the gas price issue.

Iran has demanded an increase in price according to a new pricing formula; the earlier gas sales purchase agreement (GSPA) had been agreed between Pakistan and Iran.

Sources said that the steering committee on TAPI gas pipeline project was scheduled to meet in New Delhi during the current month, but the Mumbai carnage had caused a delay. Turkmenistan, during the meeting, was expected to present certification on its gas reserves, a demand made by Pakistan and India several times. Turkmenistan has failed so far to provide the gas reserves certification.

 

[solid snake]

New China-Pak N-cooperation need approval from NSG: US

Sridhar Krishnaswami

Washington, Nov 21 (PTI) The US has asked China to halt its plan to construct two more nuclear reactors in Pakistan and indicated that any new Sino-Pak cooperation in the atomic field would require "consensus" approval from the NSG, a "difficult" task to achieve.

"Although Pakistan's energy needs are real and increasing, we believe Pakistan's proliferation record would make NSG consensus difficult were China to request an exception," State Department Assistant Secretary for Legislative Affairs Matthew Reynolds said in a letter to Democrat Congressman from Massachusetts, Edward J Markey.

Reynolds said Washington has already communicated its "position clearly" to Islamabad and Beijing that the proposed cooperation between the two countries to construct two more nuclear reactors in Pakistan should not move forward.

"We have communicated our position clearly to our Chinese and Pakistani interlocutors at multiple levels in Washington, Beijing, and Islamabad, and have made plain our view that proposed cooperation on Chasma III and IV should not move forward." The US position is that cooperation on the construction of two new reactors, Chasma III and IV, would be inconsistent with the commitments China made at the time of its adherence to Nuclear Suppliers Group (NSG) guidelines in 2004.

"We also have been in contact with other NSG members, a number of whom have expressed similar concern at the recent reports," the State Department said in the letter, which was made public today.

Reynolds also said that the US has sought and continue to seek clarification from Islamabad and Beijing on this matter. PTI

So what is the US saying, that they will never "allow" us to build nuclear power plants? Reading this has pissed me off