KARACHI, March 22: With a population of less than 50,000, the small sleepy town Gwadar on Mekran Coast is now set on way to become a hub of shipping, commercial and industrial activities in next one or two decades following the foundation stone laying ceremony of Gwadar Deep Sea Port on Friday afternoon.

A 32-member Chinese delegation led by vice premier Wu Bangguo watched on Friday afternoon Pakistan President Pervaiz Musharraf laying foundation stone of 248-million dollars Gwadar Deep Sea Port Project.

Gwadar sea port project remained a talking issue of virtually all the governments in Pakistan that came and went in last 30 years. A head way now seems to be well in sight after Pakistan and China formally signed a comprehensive agreement on March 16 at Beijing.

There were doubts on the Gwadar port project making a head way in the recent past too. The political and economic fallout of the September 11 attack on the US and the retaliatory US air raids on Afghanistan since October 7, 2001, has raised many questions. But things brightened up sometimes late November 2001 and eventually the two governments in Islamabad and Beijing decided to go ahead with the project which is bound to be a vital landmark in economic development of this region.

This project is designed to bring an economic and social revolution in Balochistan. Gwadar is now destined to be the most important upcoming coastal town located on the interjection of the three most strategically and economically important regions of the world that are oil rich Middle East, South Asia where one- fifth of world population lives and the Central Asian Republics endowed with mineral wealth and an educated and highly skilled and disciplined workforce.

The size of the Chinese delegation and the members who attended the ceremony on Friday speak of the strategic and economic importance of the project for both Pakistan and China. The delegation includes Chinese communications minister Huan Zhendong, deputy secretary general of the State Cabinet You Guang, vice foreign minister Zhou Wanzhong, vice minister of Foreign Trade and Economic Affairs Madam Xiuhong and president of China Harbour Construction Corporation.

China has offered 198 million dollars while the Pakistan government is providing 50 million dollars in the first phase to be completed in next three years. This phase includes construction of three berths with a depth of 12.5 meters 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 has established a Coastal Development Authority headed by Balochistan Governor Justice Amirul Mulk Mengal.

Mekran Coastal Highway linking Gwadar with Karachi on a 675-mile 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 is being 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.

There are reasons to believe that by the end of 21st century, the entire 800 kilometres Mekran coast will be dotted with townships and settlements of international investors, tourists, workforce coming from distant lands.

Oman, the next door neighbour, has offered a seven million dollars grant to take up various development schemes. An electric power house is being constructed at a cost of Rs50 million (around 0.760 million dollars). A major project financed by the Omani grant is upgradation of Gwadar airport to enable it receive wide bodied aircrafts. A sum of 2.3 million dollars is being utilized from Omani grant. The Pakistan government and the 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 engine run boats. The local hospital is also being upgraded.

In the fast changing world, Balochistan has acquired a special significance. Ignored for last three decades, Balochistan is now expected to get a federal funded development outlay of more than Rs65 billion. More than Rs6 billion have been provided in the current fiscal year. Gwadar sea port remains the key project of all the development being taken up in Balochistan. Mirani dam construction is another major endeavour being made to develop water resources in the province. A sum of Rs800 million is already being spent in the current fiscal.

Then of course the Mekran highway occupies a strategic position in the economic development of the province. More than Rs15 billion would be spent on this project for which the federal government has provided Rs2 billion in the current fiscal year.

Water remains a scarce commodity in Quetta where water supply is being improved at a cost of Rs6 billion. In the current fiscal, the federal government has given Rs700 million. The engineering study will cost more than Rs145 million dollars. There are many other road construction projects to link various towns and cities of the province.