ISLAMABAD, March 24: The government is finalizing a massive plan for the development of entire Gwadar coastal region during 2003-04.

Official sources told Dawn here on Monday that substantial funds were being allocated in the budget for 2003-4 to create new infrastructure facilities in Gwadar coastal areas including Free Trade Zone.

The purpose was to offer new jobs to thousands of people in the area for which the federal government would also be extending separate financial support to the Balochistan government.

Sources said that on the instructions of Prime Minister Mir Zafaruallah Khan Jamali, the Planning Commission was finalizing a huge development plan for coastal region of Gwadar.

The government has started holding negotiations with local and foreign companies to develop the phase-2 of Gwadar deep sea port at a cost of $524 million, sources said.

As soon as the phase-1 development work is completed in March, 2005, the government will be undertaking the phase-2 of the project.

The phase-2 will be developed through private sector on Built Operate Transfer (BOT) and Built Operate Own (BOO) basis. Its extension work includes 23 berths, two container terminals, two dry bulk terminals, two oil terminals, 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, sources said.

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

The phase-2 will also have the development of railway station to link the port with other parts of the country.