ISLAMABAD: The Economic Coordi­nation Committee (ECC) of the Cabinet on Thursday “endorsed” Rs739 billion Karachi Transformation Plan (KTP) and allowed revision in the Master Plan for five terminals at Port Qasim. The committee also appro­ved in principle the launch of $500 million international bond by Wapda.

The meeting of the ECC presided over by Finance Minister Dr Abdul Hafeez Shaikh also ordered shelving three LPG air-mix plants in Chitral and allowed duty and tax free import of oxygen tanks for Covid-19 patients.

Informed sources said the majority members of the ECC were bewildered by a detailed presentation of the planning ministry on KTP and noted that the matter did not pertain to the forum under relevant rules and procedures. Therefore, “the forum discussed the plan thoroughly and endorsed, in principle, with the direction to secure approval from all relevant quarters before submission to Cabinet”.

Dr Shaikh directed to follow all codal formalities with reference to various components of KTP.

The Ministry of Planning, Develop­ment and Special Initiatives had proposed that the Supreme Court of Pakistan should be requested for utilisation of Bahria Town penalty proceeds for projects adopted by the federal government for KTP. The matter pertained directly to the Cabinet. Bahria Town is reported to have deposited about Rs58bn to the apex court.

The Ministry of Finance, on the other hand, has suggested the Planning Commission to also work out some alternate plan in case of non-availability of Bahria Town compensation and advocated diversion of Public Sector Development Progra­mme (PSDP) funds through technical supplementary grants or PPP.

The Planning Division had reported that the federal government had committed to undertake Rs739bn worth of KTP projects through its agencies over the next three years and wanted to use three financing avenues — PSDP including foreign funding, PPP and Supreme Court funds. The major projects under the KTP include Greater Karachi Water Supply Project (K-IV) already given to Wapda, settlement of displaced persons in flats to ensure clearance of nullahs and rivers, Green Line BRT, Karachi Circular Railway and railway line freight corridor from Karachi Port to Pipri.

The ECC approved, in principle, the issuance of $500m debut Eurobond by Wapda to meet foreign financing needs of Diamer-Basha and Mohmand dams and directed to work out modalities in consultation with the Finance Division and the State Bank of Pakistan.

The ECC approved amendments in the Port Qasim Authority (PQA) Master Plan for establishment under Section 10 and 11 of PQA Act of 1973 for setting up of five terminals including two liquefied natural gas (LNG) terminals, two multipurpose cargo terminals and one integrated container terminal on build, operate and transfer (BOT) basis.

It was reported that PQA Master Plan was originally prepared by state-owned Nespak with the support of Swan Wooster Engineering Canada in 1975 for a period up to year 2000. In order to incorporate changes made in the master plan since 2001 and for future planning, the PQA was currently in the process of appointment of a consultant for revision in master plan. The firms have been short-listed and being presented to the infrastructure board of PQA board for selection of consultant.

The PQA “intends to establish two LNG terminals, two multipurpose cargo terminals and one integrated container terminal on BOT basis” as per modern design and practice.

The ECC decided that Sui Northern Gas Pipelines Limited should abandon the three LPG air-mix projects namely Drosh, Ayun and Chitral Town and dispose the land and equipment with minimal losses.

The ECC also approved a summary for duty and tax free import of cryogenic oxygen tanks for better handling of Covid-19 situation. It directed that uninterrupted supply of oxygen gas should be ensured at competitive rates. The meeting also approved the change in the shareholding structure of the Pakistan Credit Guarantee Company (PCGC) under which GOP shareholding in the company will be reduced to 49 per cent from the existing 70pc.

Published in Dawn, December 25th, 2020