The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) wants UAE’s AD Ports Group to pay USD$ 25 million upfront before taking over Karachi Port Terminal.

Federal Minister for Finance and Revenue Ishaq Dar chaired the meeting of CCoIGCT on Wednesday, where the meeting reviewed the recommendations of the negotiation committee which held its deliberation in two sessions on 8th August 2023, for the development of Bulk and General Cargo Terminal at Karachi Port.

The Committee approved the recommendations of the negotiating committee subject to conditions that the concessioner will pay USD$ 25 million non-refundable /non-adjustable upfront as goodwill.

The UAE government-owned firm will pay another US$25 million upfront adjustable against revenue sharing in the next 7 years with USD $3 million/annum for the first 5 years and USD 5 million each in the next two years.

In order to modernize the terminal, the Concessioner will start development work in September 2023. It was also decided that all liabilities regarding KDLB will be the responsibility of AD Ports.

The Committee recommended the commercial agreement as amended to the Federal Cabinet for its approval.

Federal Minister for Maritime Affairs Syed Faisal Ali Subzwari, Federal Minister for Commerce Syed Naveed Qamar, Federal Minister for Power Khurram Dastgir Khan, SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Mehmood Pahsa, Secretary Maritime Affairs, Secretary Law & Justice, Chairman KPT and team and other senior officers attended the meeting.

Source: Pro Pakistani