STAFF REPORT
ISLAMABAD: The Economic Coordination Committee (ECC) of Pakistan’s Federal Cabinet on Sunday approved two crucial agenda items related to the much-awaited Reko Diq project, thus clearing the way for the early launch of the project.
Pakistan’s Minister for Finance and Revenue, Senator Mohammad Ishaq Dar, presided over the meeting virtually. State Minister for Petroleum Musadik Masood Malik, Minister for Power Khurram Dastgir Khan, State Minister for Finance and Revenue Dr. Ayesha Ghous Pasha, Minister for Commerce Syed Naveed Qamar, Special Assistant of Prime Minister Tariq Bajwa, Special Assistant to Prime Minister Tariq Mehmood Pasha, federal secretaries, FBR Chairman and other senior officers attended the ECC meeting, said a press release.
Ministry of Energy submitted a summary regarding the amount held in an escrow account in connection with the dispute settlement of the Reko Diq Project.
ECC approves measures
It was presented that the government of Pakistan and the Provincial Government of Baluchistan entered into an out-of-court dispute settlement with M/s Antofagasta PLC of Chile and M/s Tethyan Copper Company Pvt Limited- a consortium of Barrick Gold Corporation of Canada in respect of Reko Diq Copper-Gold Project in Chaghi district of Baluchistan.
As per settlement terms, the Government of Pakistan has to clear Antofagasta PLC’s liabilities. In light of the terms of the deal, the ECC allowed Finance Division to direct GHPL (for GoB’s and its own share), PPL, and OGDCL to deposit the aggregate amount of interest worth US$ 22,718,173/- in the escrow account for eight and a half months from the month of March 31, 2022, to the month of December 15, 2022.
ECC allows Finance Division to arrange payment
The ECC also allowed Finance Division to make arrangements for the interest payable for the Government of Balochistan share amounting to US$ 8,519,314 from the loan of PKR 65 billion already raised by the GHPL with the Government of Pakistan guarantee.
Similarly, the Economic Coordination Committee allowed the concerned Divisions of government and the SOEs to act in such a manner to make sure that the deposited amount, along with interest deposited by the state-owned enterprises in the escrow account, form part of the Reko Diq Mining Company Limited’s consideration for share purchase.
The Economic Coordination Committee further deliberated and approved a proposal from Finance Division through a summary of the funding plan of the Government of Pakistan for the share of the Government of Baluchistan in the Reko Diq Project.
As per the proposal, an overall funding commitment of US$ 717 million over 6 years by the Government of Pakistan in respect of the Government of Balochistan SPV Project Capital Commitment will be provided by the Government of Pakistan.
