Reko Diq rebirth translates into firm ECC action
- ECC allows Finance Division to arrange interest payable for the Balochistan government’s share amounting to $8,519,314
ISLAMABAD: In a bid to pave the way for an early start of billions of dollars goldmine project days after the apex court decision, the Economic Coordination Committee (ECC) on Sunday approved two important agenda items related to Reko Diq project in Balochistan.
Finance Minister Ishaq Dar chaired the committee meeting via a video link.
The Ministry of Energy submitted a summary on accrued interest pertaining to the amount held in an escrow account in connection with the Reko Diq project dispute settlement.
It was presented that the federal government and the provincial government of Balochistan entered into an out-of-court dispute settlement with Tethyan Copper Company Pvt Ltd with respect to the Reko Diq Copper-Gold Project in the Chagai district of Balochistan.
On Friday, the federal government received a favourable opinion from the Supreme Court on the settlement agreement for the Reko Diq project, which was a condition for the finalisation of the settlement.
Supreme Court declares new Reko Diq mine deal legal
As per the settlement terms, the federal government has to clear liabilities to Antofagasta PLC, making a payment of $900 million plus accrued interest, which it has deposited in an escrow account.
In light of the terms of the agreed settlement, the ECC allowed the finance division to direct the Government Holdings Pvt Limited (GHPL), Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) to deposit the aggregate amount of interest to the sum of $22,718,173 in the escrow account from March 31, 2022, to December 15, 2022.
The ECC further allowed the Finance Division to arrange the interest payable for the Balochistan government’s share amounting to $8,519,314 from the loan of Rs65 billion already raised by the GHPL with the federal government guarantee.
The ECC also considered and approved a proposal made by the finance division through a summary on the funding plan of the federal government for the share of the Balochistan government in the Reko Diq project.
Copyright Business Recorder, 2022
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