Saudi Engineering Group International (SEGI) has signed memorandums of understanding (MoUs) with the City District Government Karachi (CDGK) to invest $500 million in two different projects in Karachi.
The two projects include the revival of tramway service in Karachi at a cost of $200 million and the creation of Bundle Island, a tourist spot near Creek Club worth $300 million.
The estimated completion time of both the projects are one and three years respectively.
In this connection, City Nazim Naimatullah Khan along with Shaikh Abdullah Bin Ali Ali and Syed Ashraf Mahmood of the Saudi Arabian Group held a press briefing on Wednesday.
Giving details of the MoU regarding the tramway project the Nazim said that having a clear vision to facilitate the commuters and travelling through safe, comfortable, affordable and sustainable mode of public transport the CDGK would enter into an agreement with the Saudi Arabian Group regarding public transport facility project on Built, Operate and Transfer (BOT) basis for a period of 30 years on possible route option from Saddar to Burns Road.
He said that with the clearance of the feasibility report by the CDGK, an agreement for execution of the project with the recommendations of the report for possible route options would be signed by the parties for immediate implementation of the project.
He also said that the Saudi Arabian Group would provide 100 percent financing and technical support, including transfer of technology/system to the CDGK, while other modalities and terms and conditions for development and implementation of the project would be finalised on mutually agreed terms.
He said that the MoU was for a period of six months and would be followed by a legal agreement subject to approval of detailed feasibility by the CDGK.
About the second project, Naimatullah said that as per the MoU the CDGK would rent out Bundle Island for a period of five years automatically extendable to another five years and would be again automatically extendable for next five years in favour of the Saudi Arabian Group.
However, he said that the Saudi Arabian Group would be responsible for getting all clearance, no objections and approvals whenever required from the provincial and federal governments, whereas the CDGK would only formally recommend their case and support it.
The salient features of the project included the establishment of a 7-star hotel, water park, safari, health club, animal rides, courtyard, aquariums, bowling and ice skating, boat rides, guest marina, restaurants, hospital, entertainment centres, etc, he added.
He said that in order to complete this huge project the Saudi Arabian Group needed to engage various consulting companies both from Pakistan and abroad and a large infrastructure, including manpower, machinery, equipment and raw material.
For this purpose both the parties had mutually agreed upon that the group would make necessary arrangements for visas, work permits and importing of essential raw material, vehicles, equipment and machinery without any customs duty and related levies from the government authorities, the Nazim said.
He also said that the Saudi Prince Meshaal Bin Muhammad Bin Abdul Aziz All Saud, the grandson of Prince Abdullah Bin Abdul Aziz and the owner of the Saudi Arabian Group would also arrive in Pakistan to attend the final agreement.
Meanwhile, Saudi Prince Meshaal in his telephonic address thanked the Nazim and the Government of Pakistan for their co-operation and hoped that the agreement would further bring the two countries closer to each other.
Later, Shaikh Abdullah Bin Ali Ali also spoke on the occasion, while those who signed the MoUs from both the parties included City Nazim Naimatullah Khan, DCO Karachi Mir Hussain Ali, Managing Partner, Saudi Group, Sayed Ashraf Mehmood and Shaikh Abdullah Bin Ali Ali.
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