ISLAMABAD: A meeting of the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) decided to take the approval of the federal cabinet for the outsourcing of Cargo Terminal East Wharf at Karachi Port to UAE port.
The CCoIGCT meeting presided over by the caretaker prime minister was submitted a proposal by the Ministry of Maritime Affairs regarding the outsourcing of operations of Bulk and General Cargo Terminal East Wharf at Karachi Port.
The secretary Maritime Affairs briefed the meeting on the process of outsourcing of port terminal and earlier decisions of the CCoIGCT in this regard.
The meeting was informed by the secretary Maritimes Affairs that the decisions of the then CCoIGCT taken in the earlier meeting dated 09-08-2023 not be ratified by the then Cabinet due to its dissolution.
The CCoIGCTdecided after discussion that recommendations of the perviousCCoIGCT09-08-2023 may be submitted to the current federal cabinet for a decision/approval.
The CCoIGCT held on 9th August 2023 reviewed the recommendations of the negotiation committee which held its deliberation in two sessions on 8th August, 2023, for the development of Bulk and General Cargo Terminal at Karachi Port.
The then committee approved the recommendations of the negotiating committee subject to conditions that the concessioner will pay US$25 million non-refundable/non-adjustable upfront as a goodwill.
The UAE government owned firm will pay another US$25 million upfront adjustable against revenue sharing in next seven years with US$3 million/annum for first five years and US$ 5 million each in the next two years.
In order to modernise the terminal, the concessioner will start development work from September 2023.
It was also decided that all liabilities regarding KDLB will be the responsibility of Abu Dhabi ports.
The committee recommended the commercial agreement as amended to the federal cabinet for its approval.
The meeting was attended by Minister for Communications, Railways, and Maritime Affairs Shahid Ashraf Tarar, Minister for Commerce, Industries, and Production Gohjar Ijaz, Minister for Power and Petroleum Muhammad Ali, Advisor to PM on Finance Dr Waqar Masood, Advisor to PM on Aviation Air Marshal Farhat Hussain Malik (retired), Advisor to PM on Establishment Ahad Cheema, SAPM on Maritime Affairs Vice Admiral Iftikhar Ahmad Rao (retired), Secretary Finance, Secretary Maritime Affairs, Secretary Law and Justice, Chairman KPT and team, and other senior officers from the Finance Division, Maritime Affairs Division, and the KPT attended the meeting.
Copyright Business Recorder, 2023