KARACHI, Oct 8: The federal cabinet decision to allot twin islands of Bundal and Buddo off the Karachi coast to a Gulf-based construction firm for developing a new city of international standard has put the city district government into a quandary as it had signed a memorandum of understanding with four concerns, including a Thai firm, to develop the ‘Karachi Technology Island City’ on one of the two islands.

Those associated with the city government project and at the moment are busy preparing its feasibility report are quite disgusted over the reported deal between the federal government and the Gulf-based firm, that has been assigned the task of working out modalities of developing its 12,000 acres of land into a modern city on the pattern of Dubai.

They had reportedly approached the then federal minister for science and technology Dr Attaur Rehman to take up the matter with the authorities concerned.

The CDGK, on October 7, 2002, had signed a memorandum of understanding with four companies for establishing an IT infrastructural project on the island located about six-seven kilometres off the coast south-east of Karachi.

This project, to be set up on a 300-acre piece of land, opposite the creek of Karachi, is designed to develop the land as a key technological infrastructure to help institutionalise and internationalise Karachi’s IT industry with the help of international donor agencies and investors.Those who had signed the MoU included representatives of the city government, Army Welfare Trust, Pakistan Software House Association, EDP Services and Access Capital (Thailand). Dr Attaur Rehman was the chief guest at the signing ceremony.

Under the terms and conditions of the MoU, all the partners agreed to jointly set up a limited liability public company under a joint venture for the management and operations of the KTIC project.

The AWT, the Access Capital and the EDP have undertaken to mange and provide technical assistance to the project in generating and arranging investments for the development of KTIC on a ‘build, operate transfer (BOT) basis under the patronage and assistance of P@SHA.

The CDGK will provide the KTIC with the piece of land on the island along with the basic infrastructure as equity in the project.

The AWT will provide technical support in designing, development, management and maintenance of the project.

The financial benefits and responsibilities of the KTIC project will be shared by parties as per the terms and conditions to be negotiated and agreed upon at a later date. The financial details outlining profits and project accounting will be laid down in the agreement also to be signed later.

There will be a mutual exchange of ideas/possibilities depending on the feasibility of each project. Decisions will be made with consensus between the partners.

The CDGK had consented to follow the rules and guidelines for assigning and operating the BOT/BOO projects.

On the occasion of the signing of this MoU, the then city nazim, Niamatullah Khan, had expressed the hope that the completion of the IT City project would prove a milestone.

Karachi has a population of 14 million people and houses 75 per cent of the country’s industries, according to him. The role of Karachi in contributing impetus to the country’s economy has given the city the status of economic jugular vein of Pakistan, which is an undeniable fact, he had observed.

The setting up of an IT City in Karachi would sure be a key step towards both economic and social development of the city and the country”, he added.