November 18, 2006	Saturday	Shawwal 25, 1427

KARACHI, Nov 17: The board of directors of Gwadar Port Implementation Authority (GPIA) has approved organisational set-up for the Gwadar Port Authority (GPA) by laying down strict parameters for hiring professionals who are well versed in modern era techniques and could face the ever-growing challenges of the port and shipping sector.

The GPIA board, while approving the organisational set-up for the GPA, noted that the main key to the success for the authority lay in strengthening its organisation to meet the challenges.

However, it emphasized the need for reducing the number of boards from three to one and suggested changes in top-structure. Consequently, it has asked the government to merge GPIA and GPA into one organization.

Under the new GPA organisational set-up it was approved that a supervisory board would be established for framing policies for the GPA. However, it was noted that the quality and composition of the supervisory board would be critical for the long-term success of the GPA.

The supervisory board will be headed by a chairman with six-seven non-executive members. It will appoint the executive management of the GPA, including chief executive officer (CEO) and vice presidents to head five divisions.

The five divisions will be looking after specialised areas, including port development, commercial affairs, operations, finance and accounts and human resources. Each division will look after various departments pertaining to their specialised areas.

Since the supervisory board will work as the central organ, it was decided that its members would not be allowed to be enrolled in key positions of the GPA’s direct customers such as port operations, sub-contractors and service providers.

It has been ensured that the board and executive management would stay independent of each other and the former would be made an autonomous body.

The main role of the supervisory board will be to monitor and evaluate GPA’s strategic direction, review and approve regulatory filings such as annual reports. It will have powers to enforce good corporate governance practices, develops corporate goals and objectives.Furthermore, the board will ensure timely and effective communication between GPA, its shareholders and other stakeholders. It will be empowered to approve amendments to tariffs and rates as it will also have government representative on its board. It also laid down strict criteria for appointing supervisory board’s chairman and board members.