Cabinet panel seeks $25m upfront from UAE firm before terminal handover

ISLAMABAD: The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) Wednesday night reviewed the recommendations of the negotiation committee for the development of Bulk and General Cargo Terminal at the Karachi Port. Minister for Finance Senator Mohammad Ishaq Dar chaired the committee meeting.

Federal Minister for Maritime Affairs Syed Faisal Ali Subzwari, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pasha, secretary maritime affairs, secretary law & justice, chairman KPT and team and other senior officers attended the meeting.

The committee approved the recommendations of the negotiating committee subject to conditions that the concessioner will pay USD25 million non-refundable/non-adjustable upfront as goodwill.

The UAE government-owned firm will pay another US$25 million upfront adjustable against revenue sharing in the next 7 years with USD3 million/annum for first 5 years and USD5 million each in the next two years.

In order to modernize the terminal, the concessioner will start development work from September 2023.