The Executive Committee of the National Economic Council (ECNEC) is to approve Gwadar Deep Water Port Project with the revised cost of Rs 16.675 billion. ECNEC is expected to meet prior to the announcement of federal budget 2011-12 and National Economic Council (NEC) meeting.
Official documents suggest that the revised scheme provides for construction of three multipurpose berths having total designed length of 602 m, 4.35km, approach channel dredged to 12.5m - 14.5m along with allied facilities to cater for up to 50,000 DWT container vessels under phase-I at Gwadar Deep Sea Port. The project has been implemented through co-financing by the Pakistan and Chinese governments (major chunk of cost is borne by Chinese government comprising of grant, soft loan and buyer''s credit).
The 1st revised PC-I envisaging construction of three multipurpose berths (602 m) with 4.35 km long navigation channel having a designed draft of 11.6 - 12.5m with allied facilities costing Rs 14.905 billion (FEC Rs 8,674.00 million) was approved by Ecnec on February 28, 2002. During execution, due to increased scope of work, cost increased.
The revised cost of Rs 16.380 billion (FEC: Rs 11,880 billion) was approved by Ecnec on February 25, 2005. The final cost of project under phase-I has again increased due to completion of additional dredging works at increased cost of Rs 2.338 billion against the provision of Rs 1.5 billion under the revised approved project.
The re-revised cost of the project is Rs 16.675 billion which is 1.8% more than the already revised approved cost. Owing to increased cost, the sponsoring agency (Ministry of Ports and Shipping) has prepared a re-revised PC-I for processing through CDWP/ECNEC.
The project stands completed at the above re-revised cost. The increase in cost of additional dredging works has necessitated preparation of 2nd revised PC-I for approval of ECNEC. Reasons for increase in cost are additional dredging of Rs 838 million, cost of consultancy Rs 12 million and establishment charges and miscellaneous expenses by Rs 144 million in the phase -1.
The documents further reveal that CDWP in its meeting on March 18, 2010 recommended the project for approval of ECNEC at the revised actual cost of Rs 16,675.00 million (FEC: Rs 13,005.60 million) including Rs 25.00 million for provision of navigation aids, subject to the condition that the sponsoring agency would submit amended copy of revised PC-I in light of observations raised in the working paper for the CDWP before submission of Summary to ECNEC for approval.
In compliance with the CDWP decision, the sponsoring agency has submitted an amended copy of revised PC-I to the Planning Commission. The amended PC-I also includes provision of Rs 25 million for navigational aids within the actual completed cost of the project.