The Executive Committee of the National Economic Council (Ecnec) has given approval to signing of an interest-free loan of US $168 million with China for the construction of Expressway on East Bay of Gwadar. The Ministry of Ports & Shipping has requested that the project being part of CPEC portfolio for interest free loan at the total investment control cost not exceeding RMB 1.1 billion equivalent to US $168 million may be placed before ECNEC for seeking approval for signing of an interest-free loan agreement. The Ecnec meeting was chaired by Finance Minister Ishaq Dar.
The construction of Expressway on East Bay of Gwadar envisages construction of 18.981-km four-lane divided expressway with embankment for 6 lanes structures integrating Gwadar Port with the Makran Coastal Highway as well as with its free zone and future container terminals.
A part of the alignment measuring for road and rail track will be constructed off-shore whereas the remaining length of road will be constructed on-shore. The project was approved by the Ecnec in its meeting held on 12.01.2015 at the rationalized cost of Rs 14.061 billion including Foreign Exchange Component (FEC) Rs 13.542.59 billion, equivalent to US $134.254 million approximately. The physical work on the project is yet to be commenced.
According to Ministry of Ports and Shipping proposal, the actual cost of project will be determined after a bidding process, which will take place among the Chinese companies duly recommended by the government of China. Revised PC-I will be submitted for seeking approval of the CDWP /Ecnec later, if cost increases by more than permissible limit of 15 per cent of the original cost.
The CDWP recommended the proposal for signing of interest-free loan as a CPEC project with government of China at the investment control cost of US $168 million (equivalent to RMB 1.1 billion approximately) for consideration of ECNEC dated May 10, 2017, said an official. After finalization of bid price, Ministry of Ports & Shipping will submit a revised PC-I of the project.