ISLAMABAD: The Gwadar Port Authority has finalised a 40-year concessionagreement with a Chinese state-owned company for the development andoperation of Gwadar Port and its free zone for the next forty years,officials confirmed on Friday.
Under the terms made available to the media, the port’s ownership willremain with Pakistan while the Chinese operator will construct, develop andmanage both the port and the North Free Zone. Monthly revenue payments tothe Gwadar Port Authority will begin within one week of commercialoperations.
Revenue distribution forms the core of the pact. Gwadar InternationalTerminal Limited and Gwadar Marine Services Limited will transfer nine percent of gross revenue directly to the port authority, leaving over ninetyper cent with the operator. In the Free Zone Company, the authority willreceive fifteen per cent while the Chinese firm retains the major share.
The agreement mandates priority employment for local residents of Gwadarand requires the operator to fund all basic infrastructure upgrades fromits own investment. Provisions for extension of the concession period incase of force majeure or disputes have been included, though suchextensions remain capped and cannot be demanded unilaterally.
Analysts describe the deal as a major milestone for the China-PakistanEconomic Corridor flagship project, expected to attract fresh investmentand create thousands of direct and indirect jobs in the coastal region.
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The pact also allows the Chinese company at least ten per cent equity inthe Free Zone Company with the right to sell shares later, while it mustmaintain fifty-one per cent control in port operations to ensure managerialauthority.
Source: www.dawn.com/news/1876543″>https://www.thenews.com.pk/print/1134567-gwadar-port-concession-agreement-signed”>https://www.dawn.com/news/1876543Source:www.thenews.com.pk/print/1134567-gwadar-port-concession-agreement-signed”>https://www.thenews.com.pk/print/1134567-gwadar-port-concession-agreement-signed
