Pakistan revives shipyard deal with Japan, South Korea
The Pakistan government plans to invite Japanese and South Korean companies to invest in shipyards, market participants told Steel First on Friday March 28.
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The investments will be on a build, operate and transfer (BOT) basis, meaning no cost for the government, sources said.
The plan was originally submitted to the government in 2008 after a group of renowned shipyard operators in Japan and South Korea conducted a feasibility study and offered to finance the shipyards.
Under that proposal, the consortium had asked the government to be an equity partner in the shipyards by providing shoreline, land and infrastructure, while the rest would be taken care of by the investors.
The original plan was to start with Gwadar port, followed by another shipyard at Port Qasim. However, until now there has been no sign that that the plan would be implemented.
Currently, Pakistan has only one shipyard at Karachi port.
The BOT proposals are expected to be presented to the prime minister in a week.