PICT may get contract for coal and clinker terminal at Port Qasim

Islamabad: Port Qasim Authority (PQA) is likely to award the contract for setting up of coal and clinker/cement terminal at the Port Qasim to M/s Pakistan International Container Terminal Limited (PICT). Sources told Business Recorder that PQA has sought the approval of the government to negotiate awarding a contract to successful bidder - PICT to set up the said terminal at Port Qasim.

Sources in PQA said that the PQA Board held its meeting on March 11, 2009. The summary of the case providing all the details regarding steps taken for evaluation of technical and financial proposals and the recommendations of PQA in-house committee was presented in the PQA Board meeting.

The board was informed that PQA in-house committee upon conclusion of the competitive bidding process cleared the bidder and allowed the authority to seek approval from the government to negotiate and award the contract to the successful bidder.

Following issuance of the board resolution, PQA has forwarded the case of the project on BOT basis to the Ports and Shipping Ministry for approval, so as to negotiate and award the contract to the successful bidder. This master plan was duly approved by the government of Pakistan for setting up of a coal and clinker/cement terminal designed to handle 75,000 Dead Weight Tonnage (DWT) bulk carriers.

It will be a Greenfield development without PQA or government funding and guarantee of throughput for a concession period of 30 years on BOT basis extendable for further 30 years on mutual agreed terms and conditions. In the event of disagreement of terms and conditions the project company shall be obliged to transfer entire assets to PQA at Re1 only.

Expression of Interests (EoIs) for the project was invited through press on July 30, 2006 and six companies submitted their EoIs. The process of selection of the firm as per laid down criteria was carried out by PQA in-house committee and PQAs consultant M/S Nespak, who recommended PICT for the terminal at Port Qasim on BOT basis.