KARACHI, July 19: Pakistan’s first grain and fertiliser terminal would be established at Port Qasim by the Fauji Akbar Portia Marine Terminals (FAP), a joint venture between the Fauji Foundation and the Akbar Group.

The National Bank of Pakistan and the Bank Alfalah, along with a consortium of banks, have signed financing agreements for Rs6.52 billion with the Fauji Akbar Portia Marine Terminals (FAP) for setting up of the terminal.

It would be established on build-own-transfer basis under an implementation agreement with the Port Qasim Authority (PQA) for a period of 30 years.

The signing ceremony was attended by FAP chairman Lt-Gen (retd) Syed Arif Hasan who is also managing director of Fauji Foundation, NBP President Syed Ali Raza, other leading bankers, directors of FAP and senior executives of the NBP.

The setting up of the terminal coincides with the celebration of PQA’s 35th anniversary and is its latest pioneering development in dedicated terminals to handle essential commodities following the existing container, oil, liquid cargo, chemical, LPG, coal and iron ore terminals.

This state-of-the-art terminal will have a design capacity of handling over four million tons of products a year for all dry bulk cargoes imported to or exported from Pakistan through the PQA.

The terminal will be equipped with fully automated un-loaders, silos for grain storage, fertiliser storage, conveying systems and automated bagging lines.

Turnaround time of vessels will be reduced and bulk silo storage would be made available at the terminal’s dedicated jetty and back up area.

This will not only reduce handling cost but also cut down on the wastage.

On commencement of operations in 2010, the terminal would add to infrastructure at PQA, reduce port congestion and vessels waiting time.

The NBP is acting as transaction lead advisor and arranger, and Bank Alfalah as co-arranger, with the consortium of banks.

National Bank of Pakistan through its Investment Banking Division was able to arrange this 10-year non-recourse project financing in a record time as a result of which FAP was able to meet project commencement timelines under the implementation agreement with the PQA and finalise award of contracts with China Harbour and Engineering Company as the design-build contractor, Vigan SA of Belgium and Chief Industries (UK) as machinery and equipment supplier.

Construction of this infrastructure project of national importance to handle essential commodities, such as wheat, is expected to commence immediately after registration of contracts with the State Bank of Pakistan and is scheduled for completion in 24 months.

The project implementation shall be overseen by FAP, Portia Management Services, UK, Inros Lackner AG (Germany) and Indus Associated Consultants (Pakistan).

Scott Wilson (UK) has been appointed lenders monitoring consultant, Marsh International (UK) has been appointed lenders insurance advisor, Mohsin Tayebali and Co acted as lender’s counsel, Bridge Factor acted as FAP’s advisors, Orr Dignam & Co., legal Advisor while Nespak are PQA’s technical consultants.—PPI