ISLAMABAD, April 23: The Opec Fund for International Development and Pakistan International Container Terminal (PICT) have signed a private sector loan agreement of $6 million for the second phase of a project to expand container handling facilities at the Karachi Port.

The agreement was signed in Vienna on behalf of PICT by Captain Haleem A. Siddiqui, Chairman of the Board of Directors, and by Jamal Nasser Lootah, Chairman of the Governing Board of the Opec Fund.

A representative of the Pakistan Embassy in Vienna was also present at the signing ceremony, according to fax message received here from Parep, Vienna, on Saturday.

PICT was established in 2002 to finance, construct and operate a common user container terminal at the Karachi Port, with the aim of increasing efficiency, streamlining costs and stimulating trade.

The Karachi Port occupies a central place in the economic life of Pakistan. It handles 60 per cent of international trade and 80 per cent of all container volume.

The recently completed phase-I of the project consisted of the procurement and installation of two ship-to-shore gantry cranes, together with rubber-tyre cranes and supporting equipment, as well as accompanying civil works.

The phase-II of the expansion includes the acquisition of one additional gantry crane and a variety of container handling equipment, along with the construction of new customs and administrative buildings.

The expanded facilities are expected to significantly increase the terminal’s handling capacity and lead to substantial benefits for the economy.

Speaking on the occasion, Capt Haleem informed the participants that as far as the second phase of PICT was concerned they were ahead of time schedule by three years and were already nearing the third phase.

He said that PICT had already been handling 21,000 TU for the last four months. When completed it would have the capacity to handle 500,000 TU per annum.

Capt Haleem pointed out that the PICT project, jointly financed by the Opec Fund and the International Finance Corporation (IFI), was 100 per cent owned by Pakistan and would represent an investment of $75 million upon its completion.

He said that looking at the successful results achieved so far, the management of the project was considering the prospects of planning a fourth phase of the project, though initially it was planned for three phases only.

This project represents the Opec Fund’s second private sector loan to Pakistan. In addition, the fund has approved over $240 million towards a wide range of public sector projects and for balance of payments support.

An agreement for the encouragement and protection of investment came into force between the fund and the government of Pakistan in February 2001.

—APP