Gwadar LNG pipeline: Finance ministry supports sovereign guarantees

Gwadar LNG pipeline: Finance ministry supports sovereign guarantees

The Ministry of Finance and Public Procurement Regulatory Authority (PPRA) have cleared the economically feasible and strategic Gwadar-Nawabshah liquefied natural gas (LNG) pipeline project, paving the way for award of its contract to a Chinese company, an official reveals.

The project won the vital clearance after the Ministry of Petroleum and Natural Resources sent a summary to the Economic Coordination Committee (ECC), proposing to authorise Inter State Gas Systems (ISGS) – a state-owned concern that works on gas import projects – in line with Rule 5 of the Public Procurement Rules 2004 to award an engineering, procurement and construction (EPC) contract to China Petroleum Pipeline Bureau along with inking ancillary agreements without open competitive bidding.

The ministry also called for issuing sovereign guarantees of the government of Pakistan against a Chinese loan facility.

It recalled that governments of Pakistan and China had entered into a state-to-state framework agreement on April 20, 2015 during Chinese president’s visit to Pakistan. The cabinet approved the agreement on July 15, 2016.

https://tribune.com.pk/story/1347917/gwadar-lng-pipeline-finance-ministry-supports-sovereign-guarantees/

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