KARACHI, Aug 19: Business leaders have appreciated the government move for setting up two desalination plants at Port Qasim and hoped that it will speed up industrialization in the area.

Many industrialists have already acquired plots in Port Qasim industrial area but are reluctant to set up industries in the absence of basic utilities i.e. water and power.

Karachi Chamber of Commerce and Industry President Khalid Feroz said that the setting up of these plants would restore confidence of the businessmen who had been reluctant to set up industries in Port Qasim area.

The Port Qasim Authority (PQA) and California Enviro Management Inc, a US company, on Wednesday signed an agreement for establishing two water desalination plants of 25 mgd each at a cost of $320 million.

The US firm would also set up 20-mw power plant at Port Qasim to meet electricity requirements of the desalination plants and sell the surplus to Karachi Electric Supply Corporation (KESC).

The desalination plants would be completed within 18 months after finishing detailed studies. The PQA is going to provide 40 acres on the northern side of the port to the US firm for building these plants.

PQA Chairman Rear Admiral Saleem Ahmed Meenai and Sami Khan of Enviro Management Inc signed the agreement on behalf of their respective organizations. Federal Minister for Ports and Shipping Senator Babar Khan Ghauri and US Consul General witnessed the signing ceremony.

Another agreement was also singed on the occasion between Karachi Water and Sewerage Board (KWSB) and the US firm. Under the agreement the KWSB will purchase water from the US firm for onward distribution.