KARACHI, April 23: Federal Finance Minister Shaukat Aziz is leading a team of bankers and businessmen to Gwadar port on Monday (April 28) to assess the business and investment potential of this strategic project being built with $200 million Chinese assistance.

Wasim Haqqie, Chairman of the Board of Investment (BoI), told reporters on Wednesday that businessmen and bankers would be given a briefing on the development work and the business potential of the port.

They are also expected to visit the nearby Pasni port and the hinterland.

The port which has strategic and regional importance is poised to serve as the main conduit for the economic growth of the largest but economically the most backward province of Pakistan. It is also expected to provide the most strategic and business links between Pakistan through Balochistan and the Central Asian Republics.

Early this month, Mr. Shaukat Aziz informed a team of top Chinese experts in Islamabad that included that Asian the Development Bank was coordinating convening a conference of Turkmenistan, Tajikistan, Uzbekistan and Afghanistan for construction of linkage facilities with Gwadar port.

The development plan for Gwadar includes an industrial area and a five-star hotel. The port has already earmarked a residential area Singhar where many leading politicians, businessmen and influential businessmen have acquired residential plots.

On Wednesday, the Executive Committee of the National Economic Council (ECNEC) also discussed a multi-million rupee development project for Gwadar. The approved plan for construction of infrastructure facilities would be part of the 03-04 federal budget.

With a population of less than 50,000, the small sleepy town of Gwadar on Mekran Coast is now set on the way to becoming a hub of shipping, commercial and industrial activities in the next one or two decades following the foundation stone laying ceremony of Gwadar Deep Sea port on March 22 last year by President General Musharraf.

The project remained a talking issue with virtually all the successive governments in Pakistan that came and went in the last 30 years. Headway was made after Pakistan and China formally signed a comprehensive agreement on March 16 at Beijing and President Musharraf laid the foundation stone with Chinese Vice-Premier Wa Bangguo last year.

There were doubts even following this. The political and economic fallout of the 9/11 attacks and the retaliatory war on Afghanistan raised many questions. But things brightened up some time in late November 2001 and eventually the two governments in Islamabad and Beijing decided to go ahead with the project.

China has offered $198 million while the Pakistan government is providing $50 million in the first phase to be completed in next three years. This phase includes construction of three berths with a depth of 12.5 metres and approach channels. On completion and commissioning after three years, these three berths will be used for loading and unloading of general cargo that may come from as far as West

China, Europe and the American continents. In the second phase 21 more berths will be completed to make Gwadar appear on the world shipping map as a most strategically located port in this part of the world.

While the construction work of port building is on, a whole set of supporting infrastructure facilities is being laid down. The government established a Coastal Development Authority.

Mekran Coastal Highway linking Gwadar with Karachi on a 675 miles stretch is going to be lifeline of the Gwadar project. It will be completed in four phases. President Musharraf has already performed the ground breaking ceremony of second phase under which Gwadar-Pasni patch was constructed by the Frontier Works Organization. Completion of this highway will open up the area exposing all business opportunities in Gwadar and on Mekran coast to the international investors.

Oman, the next door neighbour has offered a grant of $7 million to take up various development schemes. An electric power house is being constructed at a cost of Rs50 million. A major project financed by the Omani grant is upgradation of Gwadar airport to enable it receive wide bodied aircraft. A sum of $2.3 million was utilized from Omani grant. Pakistan government and Civil Aviation Authority are also contributing additional Rs563.35 million for this purpose. Water supply is being improved, seven jetties are being constructed and local fishermen are being given motor boats. The local hospital is also being upgraded.