ECC Approves Releasing $500m Eurobonds For Building Dams
The federal government’s Economic Coordination Committee (ECC) has approved to issue of $500 million worth of Euro-bonds for building Mohmand and Diamer Bhasha dams today.
During an important ECC meeting, it was decided to issue $500m worth of Euro bonds in order to raise funding for the construction of dams. The Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Sheikh, presided over the ECC meeting today.
The Ministry of Water Resources presented a summary for the issuance of WAPDA’s debut US$500 million Euro bonds to arrange the funding for Diamer Basha and Mohmand Dams. The ECC approved releasing of $500 million Euro bonds, in principle, and directed to work out modalities in consultation with the Finance Division and the State Bank of Pakistan (SBP).
The Ministry of Planning, Development, and Special Initiatives presented a detailed presentation on Karachi Transformation Plan (KTP) before ECC. The forum discussed the plan thoroughly and endorsed, in principle, with the direction to secure approval from all relevant quarters before its submission to the cabinet.
The finance minister directed to follow all codal formalities with reference to various components of KTP.
The Ministry of Maritime Affairs presented amendments to the master plan, originally formulated in 2001, regarding the establishment of 05 terminals on BOT Basis. These terminals would fulfill increased demand for container handling capacity.
The ECC approved amendments in the master plan for establishing 05 terminals including two LNG terminals, two multi-purpose cargo terminals, and one integrated container terminal on a BOT basis.
A detailed summary was placed before ECC by the Ministry of Energy (Petroleum Division) regarding shelving the LNG Air Mix Projects by Sui companies. After deliberation, the ECC decided that SNGPL may abandon the three projects namely Drosh, Ayun, and Chitral Town, and dispose of the land and equipment with minimal loss possible through an open transparent process.
The Ministry of Energy also presented a summary regarding repayment of GHPL loan and future funding requirements for expenditure in relation to ISGSL gas import and infrastructure projects. The GHPL had funded all the expenses of ISGSL through a medium-term loan as per ECC’s earlier decision dated 15 December 2016.
Various proposals were presented before the forum. The ECC approved the proposals in principle subject to clearance by the High Power Board.
The ECC also approved the summary by the Ministry of Industries and Production regarding duty and tax-free import of cryogenic oxygen tanks for better handling of the Covid-19 situation. The duty-free import of cryogenic tanks would ensure an uninterrupted supply of oxygen gas at competitive rates.
The ECC also approved the change in the shareholding structure of the Pakistan Credit Guarantee Company (PCGC). According to the new structure, the shareholding of the government of Pakistan in the company has been reduced to 49 percent from the earlier 70 percent. Any dividends announced by PCGC against shares held by the State Bank of Pakistan or any proceeds from the sale of shares in PCGC, held by the SBP, shall be remitted in the government treasury.
The ECC also approved a technical supplementary grant of Rs757.1 million for the completion of different projects under the Sustainable Goals Achievement Programmed (SAP). It approved a technical supplementary grant of Rs500 million for the reimbursement of fees for less-developed areas as requested by the Higher Education Commission.
The ECC also approved a technical supplementary grant of Rs500 million for the Ministry of Housing and Works to provide interest-free loans to borrowers under Prime Minister’s Low-Cost Housing Scheme. The Economic Coordination Committee has approved Rs4.189 billion for the execution of development schemes for Sindh and Balochistan provinces under PSDP being executed by the Ministry of Housing and Works/Pak PWD. The ECC also approved Rs327 million for the Auditor General of Pakistan to maintain the World Bank’s public financial management and accountability service delivery project during FY 2020-21