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  • Sep 28th, 2017
  • Comments Off on Gwadar airport project marred by inordinate delay
Senate Standing Committee on Cabinet Secretariat on Wednesday expressed concern over inordinate delay in construction of new Gwadar international airport, saying that it may increase the project cost beyond $220 million. While briefing to a meeting of the cabinet committee chaired by Senator Talha Mehmood, Secretary Aviation Division Irfan Elahi told the committee about development work of new Gwadar airport and up-gradation of the existing one.

Chairman and members stated that the committee was informed in 2015 that one of three Chinese companies would be selected for award of contract. However, the work is yet to be started even in 2017. The meeting was told that original PC-I estimated new Gwadar international airport cost at Rs 7.5 billion in 2010 and it was increased to Rs 22.247 billion in the revised PC-I in 2015.

The secretary aviation explained to the committee that change of ministries in China and conversion of loan into grant are the primary causes of delay in the project. He further added that initially $220 million loan was approved for the project under the Ministry of China-Pakistan Economic Corridor Project (CPEC) but as loan was converted into grant, the project was also transferred from Ministry of CPEC China to the Ministry of Commerce China. The processes of change of ministries and change of loan into grant were very time consuming.

Elahi said that agreement with China on construction of new Gwadar international airport would be signed during Chinese vice prime minister's visit to Pakistan in October 2017. The two sides have signed minutes of agreement in March 2017 and a detailed agreement will be signed in October 2017. "We have been pursuing the matter through Chinese Embassy in Pakistan as well as through Planning Commission and Pakistani Embassy in China," he said. The committee decided that it will meet new Chinese Ambassador to Pakistan with a request to expedite the matter for early completion of the project.

The meeting was told that new Gwadar international airport is part of overall infrastructure development of Balochistan. This will be a green-field airport with all modern facilities for safe operation, passenger comfort and convenience.

The original PC-I estimated Rs 7.5 billion cost of the project in January 2010. The project PC-I was revised by the Ministry of Planning, Development and Reform in 2015 with Rs 22.947 billion and Executive Committee of National Economic Council (ECNEC) approved the project subject to the condition that it should have the landing facility for Boeing 777 and Air Bus A-380 aircraft. The cost of the project was rationalized with the same facilities at Rs 22.247 billion.

The new Gwadar airport project was inducted as early harvest high priority project of CPEC program in January 2014. The framework agreement for the construction of NGIA Project on EPC (Engineering, Procurement & Construction) basis by Chinese contractor was signed between government of Pakistan and government of China on 20th April 2015 during the high-level visit of the Chinese President.

During Pak delegation's meeting with the officials of Ministry of Commerce in Beijing, China, it was agreed that construction of new Gwadar international airport will be funded through a 100% grant instead of a soft loan as decided earlier by the Chinese side.

According to the secretary aviation, China Airport Construction Group Corporation (CACC) has been selected as Management Company from the Chinese side. Focal persons nominated from both sides and a CACC delegation is expected to visit Pakistan next month.

The construction of the new airport is projected to be completed in 36 months after start. The meeting also discussed the Islamabad Gun & Country Club (Administration and Management Bill, 2017) and Islamabad Club Administration and Management Bill, 2017 and got a briefing on the current status of construction of third runway at new Islamabad international airport and its exact location.



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