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Tag: LETTER OF INTENT

  • PQA issues provisional LoI for establishment of Energas LNG terminal

    PQA issues provisional LoI for establishment of Energas LNG terminal

    ISLAMABAD: The Port Qasim Authority (PQA) has issued a provisional Letter of Intent (LoI) to Energas Terminal (Pvt) Limited (ETPL) for the establishment of a Liquefied Natural Gas (LNG) terminal at Port Qasim, it was learnt on Monday.

    “The PQA has conveyed its intent to permit Energas furnish technical and financial proposals in line with project guidelines 2019 for the establishment of a dedicated LNG facility on a build-operate-transfer (BOT) basis at Port Qasim,” the LoI available with this scribe read.

    The PQA has, however, asked Energas to fulfil some requirements for its final approval. “In the case of non-fulfilment of the requirements, the provisional LoI will be revoked automatically,” it added.

    The authority stated that the provisional LoI was issued based on the fact that the company’s quantitative risk assessment (QRA) was individually feasible, however, final LoI would be issued after due evaluation of technical and financial proposals as per the project guidelines and combined assessment of all existing and upcoming LNG terminals by the PQA-appointed consultants.

    Energas Terminal (Pvt) Limited is a consortium represented by Younus Brothers, Sapphire & Halmore and US energy giant ExxonMobil. The tolling capacity Energas’ LNG terminal would be between 750mmcfd and a maximum of 1,000mmcfd.

    The ETPL has been asked to submit a mandatory concession fee of $10 million to Port Qasim, of which $2 million shall be paid within a period of 60 days after the issuance of the LoI while $8 million upon the signing of Implementation Agreement (IA).

    “In case of non-submission of $2 million, this provisional LoI will be revoked automatically and in case of non-issuance of LoI by PQA due to any reason, $2 million will be refunded.”

    PQA has also advised Energas to submit a mandatory performance bond of $10 million on the date of signing of IA while the performance bond would be forfeited and encashed in case of failure in the commissioning of terminal within 24 months from the date of signing of IA.

    “In case of delay to commission the terminal within 24 months after signing of IA, liquidated damages at the rate of $10,000 per day would be imposed till commission of the terminal. Likewise, minimum royalty would be charged on 250mmcfd and secured through Bank Guarantee (BG) of $3 million to remain valid throughout the concession period,” it added.

    PQA said royalty shall be charged at the rate of $1.9 per tonne (excluding taxes) which would be payable on a monthly basis. The royalty rate would increase 25pc every five years.

    “The LNG terminal developer shall bind the shipping lines & consignees to pay berthage, pilotage, wharfage and all other applicable charges to PQA at prescribed gazette notified rates, revised from time to time,” the PQA provisional letter of LoI added.

  • Chinese firms issue letter of intent for $2bn investment in Pakistan

    Chinese firms issue letter of intent for $2bn investment in Pakistan

    • PM’s assistant says a heavy truck assembling plant will soon be established in the Rashakai Economic Zone

    ISLAMABAD: The XCMG and HSS Group of China have issued a Letter of Intent (LoI), highlighting their course of action to materialise the recently announced $2 billion investment in Pakistan’s housing and manufacturing sectors.

    “This shows that the foreign investors have started reposing their confidence in the improving business environment of Pakistan,” said Special Assistant to Prime Minister on Overseas Pakistanis and Human Resource Development Zulfiqar Bukhari while sharing this news with APP.

    Earlier, a delegation of two Chinese business giants, led by XCMG Global Sales President Dr Hanson Liu and HSS Chairman Syed Saman Hashmi, apprised Prime Minister Imran Khan of their desire to support the government’s public centric initiatives, particularly the low-cost housing scheme and creation of employment opportunities.

    The special assistant said XCMG and HSS Group’s letter outlined a four-point agenda to formalise its investment plan before converting it into a legal instrument.

    First of all, Zulfikar said, the investors assured the government that it would extend financial and technical assistance for construction of one million facilities under the prime minister’s five million houses project envisioned for low-income families.

    “The assistance involves designing, building and financing with pre-fabricated steel and concrete assembling technology,” he added.

    The PM’s aide said that a heavy truck assembling plant would also be established in the Rashakai Economic Zone in order to ensure industrial development in Pakistan and to create employment opportunities for the locals.

    “The companies would also provide a solution proposal for sanitation, including treatment equipment and firefighting engines, to ensure the citizens’ safety and convenience,” he added.

    Zulfiqar said during a meeting with Chinese companies on March 6 at the Prime Minister Office, the Ministry of Overseas Pakistanis and Human Resource Development had proposed a training centre specializing in equipment operation in order to train Pakistani workforce at par with global skills standards.

    He said the Chinese companies, through their Letter of Intent, have also agreed to help the government establish the said training centre.

  • PM recommends estabilishment of trade chamber with Germany

    PM recommends estabilishment of trade chamber with Germany

    As a step forward to enhancing bilateral economic ties between Pakistan and Germany, the Prime Minister  (PM) Nawaz Sharif has recommended the establishment of a bilateral chamber of commerce.

    Talking to the German federal minister for economic cooperation and development, the PM stated that Pakistan’s economy is on the path to recovery as the security situation in the country has shown a marked improvement.“Our emerging democratic character is evident from the handling of all political issues by my government in accordance with the democratic principles and law,” stated the PM.

    The German minister vowed to lend support to Pakistan in various fields.The German delegation included German Ambassador Ina Lepel, BMZ Director General Dr Bernhard Felmberg and Head of Cooperation Dr Zoll Juergen.

    In a separate meeting, the Finance Miniter Ishaq Dar met Dr Muller to exchange views on matters of mutual interest. Dar expressed his gratitude for the German government for supporting various development projects in the country, specifically appreciating a German development bank, KfW’s equity participation in Pakistan Microfinance Investment Com­pany (PMIC).

    Furthermore, Dar highlighted that having achieved macroeconomic stability in the country, the Pakistani government is now focusing on sustainable and inclusive economic growth in the country.

    He stated further that Pakistan is inclined to promote financial and digital inclusion in the country. Dar invited German companies to benefit from the country’s liberal investment policies and the opportunities presented by the Special Economic Zones (SEZs) and invest in the country, particularly in the automotive and photovoltaic (PV) cell sectors.

    The German minister while acknowledging Pakistan’s efforts in countering terrorism and extremism said that Pakistan had witnessed marked economic improved over the last three and a half years. He assured that Germany will continue to support Pakistan in its economic and development initiatives. The German minister also invited Dar to meet European business leaders to encourage investment in Pakistan.

    Following the meeting, Pakistan and Germany signed a Joint Declaration of Intent (JDI) to strengthen development cooperation between the two countries focussing on areas of governance, energy and sustainable economic development.