China express displeasure over delay in launching Gwadar Port

Islamabad: The Gwadar deep sea port project is once again embroiling in controversies, as its inauguration - scheduled for June this year - may be delayed further due to non-completion of civil works in stipulated time.


The Chinese government, which is not only providing billions of rupees but is actively engaged in construction work of the port, has conveyed its serious concern over possible delay in implementation of the project.


Sources in the Ministry of Ports and Shipping said that, higher-ups have taken strong exception of the inordinate delay in completion of civil works and a protest letter has been written to the Project Director.


The inauguration of the project that lies at the heart of President Musharraf's vision of prosperity has already been rescheduled twice.


'Formal ceremony was expected to be held in March last year but unfortunately it could not take place due to some unavoidable reasons,' an official said.


Ministry of Ports and Shipping Secretary had approved award of contract of civil works at a total cost of Rs 958.89 million, as was decided by the Gwadar Port Authority board in its meeting held on April 29, which was confirmed in the board's meeting held on September 1, 2005. However, according to the letter written to the Gwadar port Project Director, a copy of which was obtained by this correspondent, the Secretary has expressed displeasure over the delay in finalisation and submission of the case for award of contract to undertake these works.


The letter says, progress on civil works is also very slow. The Planning Commission Deputy Chairman, during the first quarter PSDP review meeting, had directed concerned authorities to expedite pace of civil works.


On the other hand, the Chinese have completed the marine works before the target date of April 2005 but the equipment provided by them could not be installed on time to make the port operational due to incomplete civil works and they conveyed their concerns over it.


It is learnt that authorities had to complete civil works till December 31, 2005.


President General Pervez Musharraf, who is very eager to make the country hub of commercial activities for the energy-rich Gulf and Central Asian states, has also directed that work relating to Gwadar port should be completed by June 2006 and the port be made operational in all respects.


According to the letter, civil works completion is much behind schedule and it seems that the task is not likely to be completed even by March this year. This is a source of embarrassment as authorities were not able to install the equipment to make the port fully operational in time.


It is heartening to note that the delay in leasing out the port to private operators by due date and funds allocated for the project during current financial year may lapse due to non-payment to the Chinese contractor and contractors of civil works.


The Project Director has been advised to consider fixing priority in the construction of ongoing civil works by evolving a mechanism in consultation with contractors to make the port fully operational by the target date of June 2006, which was fixed by the President.


In the background of increased pace of globalisation and greater demand for oil, Gwadar is the shortest possible route to landlocked, oil-rich Central Asian states.


Export of oil through Gwadar is going to change the plight of millions of poverty-stricken people in Pakistan, especially of Balochistan.


The design and construction of residential buildings and civil works of various port operation buildings and related infrastructure development is being undertaken by Pakistani contractors.


The construction of the Gwadar port began in March 2002 after China agreed to provide $198 million out of $248 million for phase-I of the project.


Estimated cost of phase-II is $600 million that includes building of nine additional berths, one bulk cargo terminal