ISLAMABAD: The outgoing Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) has finally decided to outsource the East Ghat Bulk Terminal and General Terminal of Karachi Port to Abu Dhabi Ports (ADP) for 15 years after a long deliberation. Approved.
The Cabinet Committee on Inter-Governmental Commercial Transactions meeting was held under the chairmanship of former Federal Finance Minister Ishaq Dar. The Cabinet Committee reviewed the recommendations of the Negotiating Committee which held two meetings on August 8 for the development of the Bulk Terminal and General Cargo Terminal.
The recommendations of the negotiating committee were accepted with certain conditions that the Emirati company would pay a non-refundable advance of $2.5 million.
The UAE government-owned company will pay an additional $2.5 million over the next seven years, with $3 million a year for the first five years and $5 million a year for the next two years, in return for revenue sharing.
Development work will be started in September to modernize both the terminals. It was also decided that all the responsibilities regarding Karachi Postal Labor Board will be of ADP.
The negotiation committee recommended sending the trade agreement to the federal cabinet for approval, which was approved.