ISLAMABAD: The Cabinet Committee on Inter-Governmental Commercial Transactions (CCoIGCT) has constituted another committee to determine the price discovery mechanism and frame a commercial agreement to be signed between the nominated agencies of the UAE and Pakistan for the development of Bulk and General Cargo Terminal at West Wharf Karachi Port.
Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar chaired the meeting of CCoIGCT on Thursday.
Sources said that the federal cabinet on the recommendation of CCoIGCT approved the signing of the framework agreement. The next steps are to decide the price discovery mechanism, framing of a commercial agreement and constitution of a committee to negotiate on the terms, conditions and comparison mechanism for price discovery and place its recommendations before CCoIGCT for consideration and approval.
KPT has asked to consider parameters including term of the agreement, cost of construction or reconstruction of terminal, life span of terminal, Max capacity to handle cargo, length of quay wall, royalty (per ton of fixed or gross revenue basis), land rent per square meter in bonded areas, storage charges, Dock labor charges, up front payment, quantum and type of investment for carrying out the comparisons for price discovery on outsourcing of the operation of the terminal.
According to the finance division, the CCoIGCT considered a summary of the Ministry of Maritime Affairs regarding Commercial Agreement between AD Ports UAE and KPT for Out-sourcing of the operations of Bulk and General Cargo East Wharf Karachi Port.Â
The CCoIGCT after discussion approved the Price Discovery Mechanism in the light of discussion and constituted a committee to negotiate and frame a commercial agreement to be signed between the nominated agencies of the UAE and Pakistan for the development of Bulk and General Cargo Terminal at West Wharf, Karachi Port.
