KARACHI, March 24: The Saudi Engineering Group International signed on Wednesday a memorandum of understanding with the City District Government Karachi to invest 500 million dollars in two different projects in Karachi.

The two projects include the revival of a tramway service in the city at a cost of US $ 200 million and creation of a tourist spot near Creek Club worth US$ 300 million, called Bundle Island.

The estimated time for completion of both the tramway and recreational spot are one and three years, respectively. City Nazim Naimatullah Khan, along with Shaikh Abdullah Bin Ali Ali and Syed Ashraf Mahmood of the Saudi Group, held a press briefing on Wednesday.

Giving details of the first MoU regarding the tramway project, the Nazim said that having a clear vision to facilitate commuters and travelling through safe, comfortable, affordable and sustainable mode of public transport, the CDGK will enter into an agreement with the Saudi Group on a public transport facility project on built-operate and transfer basis for a period of 30 years on a possible route option from Saddar to Burns Road.

He said that with the clearance of the feasibility report by the CDGK, an agreement for execution of the project with the recommendations of the report for a possible route option would be signed by the parties for an immediate implementation of the project.

He further said that the Saudi Group would provide 100 per cent financing and technical support, including transfer of technology/system to CDGK, while other modalities and terms and conditions for development and implementation of the project would be finalized on mutually agreed terms.

He mentioned that the MoU was for a period of six months and would be followed by a legal agreement subject to approval of a detailed feasibility by the CDGK.

About the second project, Naimatullah Khan said that as per the MoU, the CDGK would let out Bundle Island on rental basis for a period of five years automatically extendable to another five years and would be again automatically extendable for next five years in favour of the Saudi Group.

He, however, said that the Saudi Group would be responsible for getting all clearance, no objections and approvals whenever required from provincial and federal governments, whereas the CDGK would not be responsible for any clearance, no objection, approval or permission, instead it would only formally recommend their case and support it.

The salient features of the project include the establishment of a 7-star hotel, water park, Safari, health club, animal rides, courtyard, aquariums, bowling and ice skating, boat rides, guest marina, restaurants, hospital, entertainment centres, etc., he added.

He said that in order to complete this huge project, the Saudi Group needed to engage various consulting companies both from Pakistan and abroad and a large infrastructure, including manpower, machinery, equipment and raw material.

For this purpose, both parties had mutually agreed upon that the group would make necessary arrangements for visas, work permits and import of essential raw material, vehicles, equipment and machinery without any customs duty and related levies from the government authorities, the Nazim mentioned.

He further said that the Saudi Prince Meshaal Bin Muhammad Bin Abdul Aziz All Saud, the grandson of Prince Abdullah Bin Abdul Aziz and the owner of the Saudi Group, would also arrive Pakistan to attend the final agreement. Meanwhile, Saudi Prince Meshaal Bin Muhammad Bin Abdul Aziz All Saud, addressed the press conference on phone.

In his telephonic address, he thanked the Nazim and Pakistani government for their cooperation and hoped that the agreement would further bring the two countries closer to each other.

Later, Shaikh Abdullah Bin Ali Ali also spoke, while those who signed the MoUs from the both parties included City Nazim Naimatullah Khan, DCO Mir Hussain Ali, Saudi Group's Sayed Ashraf Mehmood and Shaikh Abdullah Bin Ali Ali. -PPI