Pakistan’s Board of Investment welcomes Omani Group’s offer. The Jacobabad-Gwadar Rail Link (1087km) project has strategic importance under CPEC.
Islamabad
Pakistan’s Board of Investment (BoI) says that a group led by Anvwar Asian Investments (AAI) of Oman is ready to invest $US 2.3bn in the project to build a new 1087km railway between Jacobabad and Gwadar, a port in Balochistan province that is 70km from the border with Iran.
BOI federal minister, Chaudhary Salik Hussain, recently met with a delegation led by AAI chairman, Dr. Anvwar Al Balushi. The meeting was also attended by Railway Constructions Pakistan (Railcop) CEO, Syed Najam Saeed, and Tauseef Zaman, CEO of BIL Pakistan.
According to BOI, AAI is ready to provide an immediate tranche of $US 500m for the Jacobabad – Gwadar railway, as well as financing and loans for other railway projects in Pakistan.
During a previous visit to Pakistan in January 2022, Al Balushi signed a Memorandum of Understanding (MoU) with Railcop and BIL Pakistan.
A feasibility study later prepared by Railcop found that Pakistan’s existing railway infrastructure would be unable to accommodate the increase in traffic forecast when projects are completed under the China-Pakistan Economic Corridor (CPEC) program, part of the Belt and Road Initiative (BRI).
CPEC aims to provide a rail connection between Gwadar and Xinjiang province in China.
An earlier report of state-run news agency APP said that Federal Minister for BOI Chaudhary Salik Hussain assured the Omani investors’ delegation on August 2, for full support and complete cooperation.
Minister said that he would facilitate and expedite the process of investing in Pakistan by the Omani Company, APP quoted a press release issued here.
Chaudhary Salik Hussain welcomed Omani delegation led by Dr. Anwar Al Balushi Chairman, Al Anvwar Asian Investments, Syed Najam Saeed, CEO RAILCOP and Tauseef Zaman, CEO Bil Pakistan at his office.
Chairman, Al Anvwar Asian Investments, Dr. Anwar Al Balushi briefed the minister that he was interested in Railway Infrastructure Development projects and power projects in Pakistan.
He identified the construction of rail link from Gwadar to Jacobabad (track length 1,087 Km) and as a first tranche of financing, his company was ready to transfer $500 million to Pakistan for this rail link project. Moreover, he said that he could offer financing/loans for undertaking other projects also. He said that he would work together to improve bilateral relations and strengthen economic ties between the two countries.
Both delegates agreed to enhance bilateral relations through mutually beneficial development projects.
This is ambitious plan of connecting Pakistan’s railway network from China and Afghanistan to Gwadar deep sea port under China Pakistan Economic Corridor (CPEC), which has been declared strategically important by both the countries.
It may be recalled that in October 2016, China had approved USD5 billion for this project. The project is also mentioned in ADB documents, as it had pledged to provide USD 2.5 billion. .
Earlier APP reports of January 2018 suggested that the Ministry of Railways was soon to submit PC-1 for linking new railway tracks after completion of feasibility report on various routes of Pakistan Railways.
The new tracks link Gwadar to Mastung via Basdima (906 kilometres) and Basima to Jacobabad through Khuzdar (300km), a long term project envisaged for 2025-30.
The officials of Ministry of Railways had said a feasibility study of both routes is being conducted. “The study is at advanced stages and upon completion of the feasibility study, PC-I will be prepared for approval from the competent forum,” they added.
Various land parcels required for the implementation of the said project have been identified under the aforesaid feasibility study, they said.
Regarding acquisition of land from Gwadar to Mastung via Basima and from Basima to Jacobabad via Khuzdar, they said a PC-I amounting tentatively Rs.5.000 million is being submitted for approval by the Planning Commission and Rs.400 million had also been allocated by the Planning Commission during the financial year 2017-18 for the project’s activities.
They said that the existing railway line from Rohri to Kohi-Taftan via Quetta, including the realignment of Sibi-Spezand section (1,022km) and rail link from Quetta to Kotla Jam (538km) is also being upgraded. The line is called ML-III, which will be used for exploitation of full capacity of the Gwadar Port and anticipated traffic from China after establishment of China-Pak Economic Corridor, they added.
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Source: Rail Journal, CPEC Info, Press Reader and other websites
