http://www.mccpk.com/viewnews.asp?vnews_id=659

ISLAMABAD, Oct 25: The second phase of Gwadar deep seaport construction is
expected to be started before the year-end by the Singapore Port Authority (SPA)
for which it is lining up new investment in the country.
“The government has taken a decision to allow the SPA to undertake the mighty
second phase of the Gwadar Port preferably within this year,” Director General
of Gwadar Development Authority (GDA) Ahmad Buksh Lehri told Dawn on Thursday.
He said that Phase-1 had cost $298 million and the SPA, the operator of the port
which had been given a lease for a long period of time to run it efficiently,
was currently working out its investment plan for the second phase.
The government, Mr Lehri said, had given to the SPA 16 acres of land which
included a tax-free zone.
Answering a question, the GDA chief said that the SPA had successfully overcome
initial problems and that the port was likely to be fully operational in
December with three berths handling the ships. However, to handle big ships more
berths would be required, he added.
He said that the SPA was being provided all the necessary equipment including
cranes and buildings.
“New equipment, provided by the government, is also being installed by the SPA,”
Mr Lehri said.
In reply to a question, he said that there was no law and order problem in
Gwadar. However, he said that the Coastal Highway, which was damaged by the
recent floods, should be repaired on a priority basis.
More warehouses and other equipment were also needed to enhance country’s
foreign trade, he added.
Earlier, the Singapore-based operators were told to expedite the work especially
after having received a 40-year tax holiday despite the concern expressed by
other investors and the World Bank and Asian Development Bank (ADB).
The GDA director general said since the government had already been extending
tax exemptions and tax holidays in various industrial and duty-free economic
zones, the SPA was also offered a tax holiday.
He said export processing zones were also enjoying certain tax holidays and
exemptions and there was nothing exceptional in the case of SPA, which was
investing $550 million.
The Gwadar port located in Balochistan is being considered a future trading hub
in the region because of being so close to the Gulf region.
Initially, it is expected to face competition from the Iranian port of Salalah,
but after the completion of Phase-2 by 2010 at a cost of $840 million, it is
likely to become one of the busiest ports in the region. It will provide
warehousing, transhipment and industrial facilities for trade with over 20
countries including the Gulf countries, Iran, Central Asian states, India, China
and East Africa.
The government has also planned some other concessions for the proposed Export
Processing Zone (EPZ) to be located near the Gwadar port for local and foreign
investors. There will be customs, sales tax and excise duty exemptions in the
EPZ to promote substantial investment in Gwadar.
A number of foreign investors have shown interest in establishing mega
refineries, building storage capacity and undertaking other businesses in Gwadar
to help expedite the process of industrialisation in Balochistan.
Land for the new international airport has been acquired after giving due
payments to the landowners. The government is said to have released about Rs4
billion for acquiring land for the proposed oil city. Prices of land in Gwadar
have gone up.
With the completion of Gwadar port, a special industrial development zone, about
30km off the port, will also be set up on 4,000 hectares.
The federal government has also provided Rs700 million to Balochistan to meet
water demand of the Gwadar Industrial Estate (GIE) for 15 years by installing a
foreign-assembled desalination plant.
The water demand will be met partly by recycling the waste water (irrigation and
industrial cooling) and partly by the desalination plant as there is no water
resource available in the area.
The Balochistan government has provided 3,000 acres of land, of which 20 acres
will be made available for free through the GIE to set up water desalination
plant, intake work, storage tanks and other facilities.
There will be approximately 2,000 industrial units in the GIE creating 30,000
jobs. Most of the production will be export-oriented.
Engr. Hameed Baloch
MEKRAN CONSTRUCTION & REAL ESTATE
Opposite Dashti Market, Airport Road,
Gwadar, Balochistan, Pakistan.
Mobile: 0092-300-2074394
Tel: 0092-86-4211913, 4211347
Fax: 0092-86-4211914
Email: hameedbaloch@...
Website: www.mccpk.com




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