Govt defers construction of breakwater at Gwadar Port

ISLAMABAD: Without having a clear-cut commitment from China to provide a major chunk of its financial support for the construction of breakwater at Gwadar Port with an estimated cost of Rs 42.2 billion, the government has again deferred approval of its much-delayed project till confirmation from the Chinese side.

After its decision to scrap CPEC Authority, the government has approved CPEC Support Project (CPECSP) for three years with an estimated cost of Rs 732 million till 2024-25. The Project Director CPECSP will be the operational head of the CPEC-Support Unit and a team of 37 members comprising 18 officers and 19 support staff will assist the project director in the execution of the project. Further, one officer from Navy and SUPARCO will also be attached to the project. The Planning Department will report to the Secretary Ministry of Planning. The Ministry of Planning did not issue any official press release despite holding the Central Development Working Party (CDWP) meeting here on Thursday. One top official told The News that the forum approved the concept paper for Flood Protection Plan (IV) at a cost of Rs 96 billion.

For the Breakwater Project at Gwadar port, the official sources said its cost was estimated at Rs 42.2 billion including a local component of Rs 3.12 billion and a foreign exchange component of Rs 39.07 billion. This provides protection against waves, and monsoonal swells to to endure the safety of berthing, and cargo operation as well. Besides the development of 4.8km of East Bay proposed for Gwadar Port, Eastbay Fishing Boats Basin, future ship services and bunkering facilities proposed Naval Basin project and existing multipurpose wharf, during both construction and operational stages.

Gwadar Port expansion comprises the future construction of berths to cater for New Generation Ships. The Gwadar Port Breakwater is designed to protect the area within Master Plan (2007) including gentle sloping beaches while reducing coastal erosion and impacts of siltation in East Bay. Overall Gwadar Port Breakwater will provide protection for safe working in the port, navigation, cargo handling, berthing and un-berthing, dredging, hydrographic surveys, mooring, etc.

The PC-II was approved in 2016 as it was sponsored by the Ministry of Maritime Affairs (MoMA) and was to be executed by Gwadar Port Authority (GPA) for conducting a feasibility study for the construction of a breakwater at Gwadar at the cost of Rs.230 million. The Ministry of Maritime Affairs sought a No Objection Certificate (NOC) from the Ministry of Planning for signing a Memorandum of Understanding with a Chinese company but the Ministry of Planning did not provide this NOC. However, the Ministry of Maritime Affairs signed MOU with a Chinese company for conducting a feasibility study after the lapse of more than one year. On the basis of this feasibility study, the PC-I was prepared but the Ministry of Planning returned the PC-I with objections that MoMA should justify submission of the PC-I on the basis of the feasibility study conducted by the potential EPC contractor and not on the basis of the consultant hired through the approved PC-II in line with PPRA rules. Secondly, it was observed by the Ministry of Planning that the detailed breakup of the cost and basis of its rates have not been provided in the PC-I as 94% of the total cost of the project is proposed to be funded through a Chinese loan. The MoMA should clarify whether any firm commitment in this regard has been conveyed by the Chinese side to Economic Affairs Division.

The CDWP in its meeting held in July 2022 stated directed that the Ministry of Maritime Affairs will hold technical consultations with all stakeholders including the Ministry of Planning and Pak Navy to address observations contained in the Pakistan Navy report. The CDWP further added that the secretary, Economic Affairs Division (EAD) will submit a report on the availability of financing from the Peoples Republic of China for the Gwadar Port Breakwater project. The report must contain documentary evidence clearly suggesting that EAD had communicated in the past on the availability of funds specifically for this project to MoMA/GPA. The EAD will also provide documentary evidence in the report that firm commitment to financing this project has been made by the Chinese side.

The CPEC Support Project will provide secretariat support to the CPEC-related activities i.e. organizing JCC and JWG. Mo PD&SI has been declared as the coordinating and leading agency of the Joint Working Group (JWG) from the Pakistan side. The project is providing all kinds of technical and secretariat support in the formulation of plans and carries out work under the guidance of JWG.