ISLAMABAD, Aug 2: The government will soon be holding negotiations with local and foreign companies to develop the phase-2 of Gwadar deep-sea port at a cost of $524 million.

“As soon as phase-1 development work is completed on March 23, 2005, we will be undertaking the phase-2 of the project in Balochistan for which we hope to line up $524 million,” said Minister for Communication and Railways Lt-Gen Javed Ashraf Kazi.

Talking to Dawn here on Friday, he said that phase-2 will be developed through private sector on Build, Operate and Transfer (BOT) and Build, Operate and Own (BOO) basis. Its extension work includes 23 berths, two container terminal, two dry bulk terminal, two oil terminal, one RO-RO terminal, one bulk cargo terminal, one general cargo terminal and channel dredging from 15.6 M to 20.0 M deep with allied facilities.

The development of phase-1 is to cost $250 million, which mainly included Chinese funding of about $200 while the remaining $50 million have been arranged by the government. Work on Gwadar port had started on March 22 this year. The total cost of the project is estimated at $1.1 billion.

The minister for communications and railways said that phase-2 will also have the development of railway station to link the port with other parts of the country.

However, he said, the Gwadar port might not be a profitable venture immediately. “This huge project will require the setting up of tax-free zone, industrial zone and big network of roads later to be connected with the Central Asian States,” he added.

Once these facilities are developed, the minister said, there will surely be a greater profitable activity to run the port on commercial lines.

“Then we need to find out or make arrangements for getting sweet water,” he said, adding that the Water and Power Development Authority (Wapda) had been directed to bring electricity from Khuzdar to the port area.

The phase-1 components, the minister for communications and railways said, included 3 multi-purpose berths, each of 200 meter length with 650 meter back area.

To a question, he said the second Chinese dredger has arrived on June 3, 2002, and has been deployed for channel dredging. During the period up to June, 2002, he pointed out, CHEC planned dredging, reclamation, cofferdam, west revetments and road construction.

Revetments and Cofferdam design and drawing as well as drawing for soft ground treatment from Fourth Harbour Engineering Investigation and Design Institute (FHDI) have also been received.

During the year 2002-2003, dredging and reclamation, soft ground treatment and construction of quay have been planned. In addition, equipment for port will be procured and installed during the current financial year.