IPI gas line project completion by 2013

Islamabad: While calling it a project of peace and progress, Pakistan and India on Friday declared that they have made substantial progress on controversial issues regarding $7.5 billion Iran-Pakistan-India (IPI) gas line project and a formal agreement to commence practical work was now only a matter of days.

Petroleum ministers of both countries held a crucial round of talks here and discussed three outstanding issues. These included the structure of pipeline company, which will execute and mange the project, transportation tariff and transit fee.

At a joint press conference, Petroleum Minister Khawaja Asif and his Indian counterpart Murli Deora sounded confident over reaching a formal agreement on IPI project timeframe and completion of the gas line by 2013. They also had identical approaches on the issue of US pressure for blocking IPI.

They ruled out any such possibility and said India and Pakistan were badly in need of the project to meet their growing energy demand and none of them could succumb to external pressure. They said their own countries' economics will dictate priorities for IPI gas line project.

Khawaja Asif and Murli Deora said they will present the report on the outcome of Islamabad meeting to their respective governments and this would be followed by formal signing of the agreement on execution of the project.

On the question of Pakistan's invitation to China to join IPI project, Deora said Pakistan side did not convey any such thing during the talks and he has nothing to say on it. He also did not divulge on the details of transit fee and security cover to be given to IPI gas line. He said these issues were discussed at the meeting and their outcome will be announced at an appropriate time.

Khawaja Asif denied any change in the gas line route and said the initial route was intact and gas line will pass through Pakistan along coastal highway in Balochistan and then from southern Punjab to reach the Indian part from Wagha, Lahore. He said that financial support will be sought from international donors once the project reaches that stage.

A joint written statement issued after the meeting said the petroleum ministers of Pakistan and India met on Friday in Islamabad with their respective delegations to discuss bilateral issues pertaining to IPI gas line project.

It added the meeting was held in a cordial atmosphere and both sides had complete mutual understanding on key issues relating to the structure of the pipeline company, which will execute and manage the project. Other issues which were discussed during the meeting were transportation tariff and transit fee. It maintained that consensus was reached in principle and this will be followed by a bilateral agreement between the two sides.