New Gwadar Airport gets ECNEC’s approval

**All Gwadar related projects should be completed on a war footing base. If we play our cards properly, Gwadar will be the next Dubai in 10 to 15 years **

Development schemes: New Gwadar Airport gets ECNEC’s approval

By Shahbaz Rana
Published: January 13, 2015

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Oman has promised a grant of $17.5 million for the new airport while the Civil Aviation Authority will bear one-tenth of the total cost from its resources. STOCK IMAGE

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ISLAMABAD: **The Executive Committee of National Economic Council (Ecnec) on Monday approved nine mega development schemes requiring a total expenditure of Rs105 billion including construction of the New Gwadar International Airport at a cost of Rs26.6 billion.

Called the apex project-sanctioning authority, Ecnec directed the Aviation Division to change the design of the Gwadar project in order to facilitate the landing and take-off of Boeing 777 aircraft.

The Planning Commission proposed to revise down the project cost to Rs21.5 billion, but because of further modifications in the design, it would cost no less than Rs26.6 billion, said an official of the Ministry of Finance.

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As part of its** $46.6 billion investment programme** for Pakistan, China is expected to provide $662 million in assistance for developing land, airport and seaport facilities in Gwadar.

Oman has promised a grant of $17.5 million for the new airport while the Civil Aviation Authority will bear one-tenth of the total cost from its resources.

Initially, Ecnec had approved the Gwadar airport in January 2010 at a cost of Rs7.7 billion. Since then, the project has been facing delays because of its cost estimate and design structure. Until June last year, Rs803 million had been spent on its development.

The project featured on the PML-N government’s priority list following a strategic partnership accord between Pakistan and China for establishing an economic corridor.

**Under the partnership, China is planning to use the Gwadar Port for developing its western parts, which have been roiled by insurgency and separatist movement because of its largely underdeveloped status.
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Ecnec gave its seal of approval to the construction of an **expressway on the east bay of Gwadar Port at a cost of Rs14.1 billion. **China will provide Rs13.5 billion for the project, part of the early harvest programme of the economic corridor.

The committee considered and cleared the development of** Gorkin-Matiltan hydropower project **of 84 megawatts at a rationalised cost of Rs20.7 billion.

The project will bring an annual income of Rs 3.5 billion after completion in about seven years. A fifth of the cost will come from the Annual Development Plan of Khyber-Pakhtunkhwa and the remaining 80% will be injected in terms of loan from the Hydel Development Fund of the province.

A project for the construction of 73.7km Torkham-Jalalabad road, costing Rs7.4 billion, also won Ecnec’s nod. The need of funds is proposed to be met out of the $500 million pledged by Pakistan for the reconstruction and rehabilitation of Afghanistan.

The committee cleared the Balochistan educational project with an expenditure of Rs 3.6 billion. Finances are being arranged in the shape of a grant from the Global Partnership for Education under the supervision of the World Bank with guidelines for the province to provide access to primary education.

The project will cover the entire 32 districts of Balochistan. A total of** 2,000 mixed-gender primary schools** will be established and 60 girls’ schools will be upgraded. This will bring 100,000 out-of-school children to educational institutions and will provide employment to 4,000 teachers.
A project for the rehabilitation, upgrading and conservation of 400 coaches of the Pakistan

Railways also got Ecnec’s green signal. With an investment of** Rs 5.2 billion, 400 coaches **will be rehabilitated. Ecnec approved, in principle, the construction of Amri-Kazi bridge over Indus River at a cost of Rs7.2 billion. The federal government will bear half of the cost and the rest will be paid by the Sindh government.

With spending of Rs7.7 billion, the water sector capacity building and advisory services project was also cleared. The project will lead to improvement in water resources management and investment planning in the Indus River basin in order to strengthen the water sector’s sustainability.

The committee cleared the 500-kilovolt sub-station Faisalabad west project at a rationalised cost of Rs9.4 billion.

Published in The Express Tribune, January 13[SUP]th[/SUP], 2015.

Re: New Gwadar Airport gets ECNEC’s approval

May be off topic but I always wanted to visit Gawader. Never been there but have seen so many photos and have read so many articles.

Planning to visit the place for couple of days during my next Pakistan trip (inshallah). Is it safe to travel by road from Khi to Gawadar? Can anyone from the area give first hand views?

Re: New Gwadar Airport gets ECNEC’s approval

Free trade zone in Gwadar

Amin Ahmed Updated about 11 hours ago

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A view of the Gwadar Port.

A lease agreement is being processed to hand over 2,281 acres of land to the China Overseas Port Holding Company for the establishment of a ‘free trade zone’ in Gwadar.

According to a senior official of the ministry of ports and shipping, the lease agreement is currently being reviewed by the law division. After the government’s formal approval, the land will be leased out to the Chinese company for 40 years. The ministry has paid over Rs6.69bn to acquire the land through the deputy commissioner of Gwadar.

The free trade zone is seen indispensable for the success of the Gwadar port, as they are an integral part of all modern ports. The zone is expected to ensure optimal use of the deep sea port. In Gwadar port’s master plan, prepared by foreign consultants, the mouza Dor Gatti area had been earmarked for the free trade zone.

A free trade zone is a designated area that eliminates traditional trade barriers such as tariffs, and minimises bureaucratic regulations. Its goal is to enhance global market presence by attracting new businesses and foreign investment.

The Chinese company has been incorporated as the ‘Gwadar Free Zone Company’. It will finance infrastructure development of the zone area, with the exception of access roads, which will be financed by the Gwadar Port Authority. The company will bring local and foreign investment to establish the manufacturing assembly and processing plants.

The zone will be located immediately west and adjacent to the planned container terminal. Out of 2,281 acres, 654 acres are naval and coast-guard land, for which the owners will compensate with 1,000 acres under a deal approved by the Senate Standing Committee on Ports and Shipping.

In the customs-free zone, all imports would be subject to the applicable duties and charges if and when they are taken out of the free zone, except for the purpose of export. The area will be used exclusively for port-related business and industry.

A 20-year tax holiday will apply to businesses in the free trade zone. Under the agreement, 15pc of gross revenue from the free zone will be paid to the Gwadar Port Authority by the Chinese company. It is expected that the development of the zone will help create job opportunities, and lead to transfer of technology and business activities.

Plans are also afoot to link the Gwadar deep sea port with the hinterland through rail to fully realise the port’s potential.

The chief engineer of Pakistan Railways who is dealing with the project, Basharat Waheed, said out of the total cost of around Rs1.3bn for the 285 acres of land, Pakistan Railways has paid Rs450m for the acquisition of the land required by it through the Board of Revenue of Balochistan’s secretary. The remaining amount of Rs700m is expected to be approved by the Central Development Working Party of the planning commission at its next meeting.

Initially, Pakistan Railways had planned to acquire 373 acres of land, but due to the escalation in the market price in the wake of the port’s construction, the area was reduced to 285 acres.

The land will be used for the construction of a railway container yard, station and other operational facilities and a 30-metre-wide corridor to the deep sea port on one end, and a point outside Gwadar’s limits, at a distance of 25km on the Gwadar-Turbat-Hushab-Besima-Mastung rail link on the other side.

The proposed container yard will have the capacity to handle about 500 railway freight wagons, including marshalling of freight trains. The laying of a double-track from the container yard to the deep sea port has also been proposed.
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Published in Dawn, Economic & Business, February 2nd, 2015*

Re: New Gwadar Airport gets ECNEC’s approval

I thought that happened when the gawadar-kashgar MOUs were signed? At least start building something then more show bazzi.

Of course, that is imran's fault in islamabad that construction in gawadar doesn't happen. There non league be happy that I provided their response.

Re: New Gwadar Airport gets ECNEC’s approval

What about the ISB airport?

heard its a flop project now