Islamabad: Federal government, before the dissolution of the National Assembly, approved the outsourcing of Karachi port terminals to Abdu Dhabi.
According to details, the Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) made the approval under which the Bulk and General Terminal at Karachi Port (East Wharf) has been handed over to Abu Dhabi Ports (ADP). The deal has been made for a period of 15 years.
The CCoIGCT, that made the decision, included Maritime Affairs Minister Syed Faisal Ali Subzwari, Commerce Minister Syed Naveed Qamar, Power Minister Khurram Dastgir Khan, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pahsa, Secretary Maritime Affairs, Secretary Law & Justice, and Chairman KPT. Federal Minister Ishaq Dar chaired the meeting.
The CCoIGCT, after reviewing the recommendations of the negotiation committee, approved the process. As per the conditions, the concessioner will pay $25 million non-refundable as goodwill. The Abu Dhabi Ports will make the next $25m payment as an upfront adjustable against revenue sharing in the upcoming seven years. The payment is broken into two parts:
- $3m per annum for the first five years
- $5m in the next two years
The concessioner will start development work in September for modernising the terminal. All the liabilities regarding the Karachi Dock Labour Board are the responsibility of ADP after the agreement.