Gwadar, March 23 : President Gen. Pervez Musharaf Friday said that the completion of Gwadar Deep Sea Port Project would further strengthen the ever lasting and time tested friendship and relationship between Pakistan and China spread over five decades.

"We are witnessed to history being made for Balochistan and Pakistan and also the relation ship between Pakistan and China". President Musharaf declared while speaking at the ground breaking ceremony of US 248 million dollar Gwadar Deep Sea Project Phase I

The proposed paper is the result of much historical research conducted in the British Archives and in the Quetta Archives ( Baluchistan ), combined with several seasons of field work carried out in Makran, in Oman and in Zanzibar.

The role played by Gwadar within the framework of the slave, ivory and spive trade coming from the Arabian peninsula and from East Africa directed to Central Asia had been crucial since time immemorial. Gwadar includes not only the town and port but the whole sandy peninsula of that name covering an area of about 307 square miles. Lying about 290 miles west of Karachi and 160 miles south-west from Turbat - the capital of Makran -, this coastal base has been through the ages one of the main routes of communication between the Middle East and the Indo-Pakistani sub-continent. Towards the end of the eighteenth century Nasir Khan I, of the Ahmadzai family of the Brahui ethnic group of Kalat "granted" the port of Gwadar to Sultan bin Ahmad (ruled 1792-1804) of the Al Bu Sa'id tribe of Oman, who escaped from Maskat (Muscat ) around 1784. Sultan bin Ahmad of the Al Bu Sa'id maintained this possession also after his accession to the throne of Maskat. One of the first steps taken by Sultan bin Ahmad of the Al Bu Sa'id was the nomination of a wali, an Arab deputy (or governor) at Gwadar, who received the order to build a fort in the best safeguarded side of Gwadar Bay. The wali also received the order from the Omani ruler to conquer Chah Bahar, which was captured by surprise and annexed to the Maskati dominions. The complex question of the origins and of the juridical value of the "grant" of the port of Gwadar and its surroundings from Nasir Khan I, Khan of Kalat, to the Al Bu Sa'id of Maskat as a refuge, but also as a strategic base for the struggles of power within the Omani tribes, was a significant subject matter which caused innumerable political conflicts.
During the second half of the nineteenth century, because of the construction of the Indo-European Telegraph Line, Sir Frederick Goldsmid - Head of the [Anglo-Persian] Boundary Commission - made investigations in the Makran area in order to determine the boundaries between Makran, Sistan and Persia. Territorial and juridical claims were advanced from all sides directly involved in this serious matter. These claims gave rise to tensions and struggles, for a long time unresolved. Nevertheless, Gwadar remained an Omani possession as part of the sultanate until September 1958. Gwadar today belongs to the jurisdiction of the Government of Baluchistan - Home and Tribal Affairs Department - within the Makran Division. The African element is still very evident in this ex-Omani enclave. Within the old Arab-Indian-African bazaar, there is the ancient Ismaili (Khojas) community centre, as the Ismailis played a crucial role in the history of the town and still detain a determined power in the local society.
 

ISLAMABAD, Pakistan: Jan 09 (PNS) - Minister for Communications, Ahmad Ali Thursday said the grand Gwadar Port project will become operational by July 2005. " Gwadar Port project is among the priorities of the government and possesses great significance from economic viewpoint," he said, presiding over a meeting of Gwadar Implementation Committee.

The minister said completion of the project will prepare ground to promote regional trade activity at large and directed to gear up work for providing basic infrastructure at Gwadar.

The meeting reviewed in detail matters relating to development of the Port. The minister said beside completion of Port construction work basic facilities like water, electricity, gas and telecommunication facilities must also be provided in the area to generate maximum benefits from trade activity at Gwadar Port.

He asked the concerned departments to undertake pragmatic measures for provision of basic infrastructure at Gwadar as well as setting up a desalination plant and electricity generation system.

Ahmed Ali also directed the Civil Aviation Authority CAA to upgrade the existing airport into a fast track airport. He said functioning of Gwadar Port will accelerate economic activity and usher in a new era of economic uplift in the whole region.

The minister said as this Project is being completed with the financial and technical assistance of neighbouring country China, it will help further strengthen friendly ties between the two countries.

The meeting also reviewed the matter of setting up a Special Economic Zone at Gwadar. Secretary Communications, Iftikhar Rashid called for better coordination among the government departments to provide basic infrastructure at Gwadar.

He said, the Ministry of Communications is undertaking all possible steps for timely completion of the Port. Chairman National Highway Authority Maj. Gen. Farrukh Javed informed the meeting that under construction Mekran Coastal highway will be completed by June next.

He said Mekran Coastal Highway will provide link between Gwadar and Karachi and a high standard of construction for this highway is being ensured. The senior officers of the Ministry of Communication, National Highway Authority, Ministries of Water and Power, Petroleum and Natural Gas, Railways and the Government of Balochistan also participated in the meeting.
 

ARTICLE: Since President Pervez Musharraf performed the ground-breaking ceremony for the development of the long-awaited Gwadar port on March 22, 2002 and the Chinese participation in the development of the port and their contribution in phase-I has created a keen interest not only among Pakistani entrepreneurs but also in other parts of the world, particularly Central Asia, Afghanistan, China, Japan, Singapore.
The completion of phase-I is expected at the end of this year or in early March 2004 then phase-II will be undertaken without any delay.

The construction of deep-sea port has received attention of the investors of various countries but much depends on how the government's planning commission and various federal and concerned provincial departments provide funds for investment in this coastal area.

Gwadar deep sea does not seem to be economically viable unless great efforts are made for creating conducive environment for industrialisation of this region based on strategies, programme and scientific approach and efficient directions to make it a comprehensive and competitive project.

To the best of my knowledge and information, China is not inclined to participate in joint ventures. However, it is prepared to help Pakistan in the development by building infrastructure for the deep-sea port.

There are no two opinions about China's role in the structure of Gwadar port and if China extends further co-opefration in contributing the investment in joint venture or even technical co-operation in planning and developing industrial parks, there is no better alternative and the government will try to implement industrial parks projects with the assistance of China.

The process of industrialisation in Pakistan has suffered a setback since the previous government in 1972 embarked on nationalisation programme. Investors in Pakistan withdrew their hands from further investment and since then, one can see a very negligible domestic investment coming in.

The present government is very keen on inviting foreign investment and great efforts are being made by the board of investment as well as various ministries such as Commerce, Industries and Finance to lure investors to come to Pakistan. Unless domestic investors set the ball rolling with viable export-oriented projects, foreign investment will continue to wait and watch before taking any initiative.

The relation between Pakistan and China being very cordial, China can still be persuaded to invest if our government prepares very ambitious plan for creating a free-trade zone followed by export processing zone with unique offering coupled with attractive incentives to the customers for advantages in productivity at Gwadar port.

As an example, Singapore is developing industrial parks in various parts of Asia, which also offers a solution for speedy development of industrial estates in Gwadar. Economic development board of Singapore is responsible for all activities pertaining to economic development, planning of industries and promotion of export. There is a separate organisation ie SembCorp Park Management (SPM) which undertakes planning, marketing and management of industrial parks since 1990.

Batamindo Industrial Park: Located on the free trade island of Batam (Indonesia), approximately 20 km from Singapore, the Batamindo Industrial Park (BIP) is pioneer in the industrial township concept. It combines the very best in manufacturing facilities, utilities and support services.

The BIP has been developed as part of the economic co-operation agreement within the Riau development framework, which was signed by the governments of Singapore and Indonesia.

The park, which commenced operation in 1991, spans over 320 hectares, and is staffed by 70,000 workers. With its proximity to Singapore, the BIP is well positioned to enjoy the complementary strengths of the two countries, such as access to world markets through Singapore, and attractive incentives from Indonesia.

Bintan Industrial Estate: The Bintan Industrial Estate (BIE) is a duty free Export Processing Zone on Bintan Island in Indonesia, about 50 km from Singapore. Besides attractive incentives, the BIE also offers investors an abundance of resources as well as access to world markets via Singapore's excellent transport and logistic infrastructure.

Focusing mainly on the electronics and resource-intensive light industries, the BIE was conceived to capitalise on the synergies that exist between Singapore and Indonesia. Investors in the BIE enjoy a package of incentives similar to those of BIPs.

Vietnam Singapore Industrial Park: Located in Binh Duong Province, approximately 17 km from Ho Chi Minh City, the Vietnam Singapore Industrial Park (VSIP) is situated within easy reach of Tan Son Nhat International Airport, as well as major river port. Operating in Binh Duong means easy access to a ready pool of labour as well as more favourable operating costs when compared to Ho Chih Minh City.

Wuxi-Singapore Industrial Park: The Wuxi-Singapore Industrial Park (WSIP) is a world class facility that offers an excellent environment for high-tech and electronics manufacturing. The park has been certified ISO 9002-the first integrated industrial park in China to have achieved this quality mark.

The focal point for much of the economic activity in the Yangtze River Delta, Wuxi is only 130 km away from Shanghai, and is also within easy reach of other major river ports. Its strategic location, quality facilities, reliable utilities, and the well-developed transport and telecommunications networks of Wuxi have contributed to WSP's success.

Since no firm proposal has been made by Pakistan or by any semi-government or private organisation, Sembcorp Parks Management (SPM) will not be able to confirm their participation in finding based investment in Pakistan's Industrial Parks Projects.

However, with extensive experience and expertise gained through a decade of operations of various industrial projects, SPM is now able to claim that they are in a better position to provide global companies solutions to their manufacturing needs through its portfolio of integrated industrial parks.

SPM is to plan market, offer reliable and efficient infrastructure as well as comprehensive one-stop service within a safe and harmonious working environment and rewarding work environment for the workers of industrial parks.

Action Plan on Priorities: The government of Pakistan should immediately initiate negotiation with Sembcorp Parks Management (SPM), Singapore, for creation of industrial park in Gwadar. For that purpose, the government of Balochistan will have to earmark a strategic location near Gwadar Port Project for industrial and investment purposes.

Gwadar airport should be extended to be a full-fledged international airport so that investors reach Gwadar directly without any transit hazards. In order to provide facilities to the industrialists and investors, the most immediate need is to plan Export Processing Zone and demarcation of the industrial plots in varying sizes are earmarked and sold on lease to the legible entrepreneurs who submit proposals for setting up industries.

All proposals should be supported by viable feasible studies of the project. The price of the industrial plot should be attractive. However, there should be a time limit given to every investor for starting the project so that industrial activities in the Export Processing Zone start on time as schedule given for fast start up of operation of plants.

The allocation of land to investors will be conditional that the project is export oriented and that there is time limit for the completion of the project and if the project is not in operation within the given time the allocation of industrial plot would be cancelled.

Besides, the land should be earmarked for at least two 5-Star hotels so that the construction of hotel is completed within three to four years by the time industrial activities reach full gear. All the activities mentioned above are time-consuming and in view of the urgency of industrialisation process at Gwadar, the decisions on various proposals should be taken for immediate implementation.

From the information available, one can pick and choose priorities from the following recommendations: Declaration of Gwadar Port as Free Trade Zone followed by declaration of Export Processing Zone and notified its status as such.

Earmark land for industrial parks. At least three Industrial Parks ie 
(I) value-added textiles 
(ii) other major export oriented industries 
(iii) Miscellaneous Small and Medium Industries preference to women ownership.

Peoples Republic of China, Singapore, Japan and Malaysia should be invited to participate in joint ventures in export oriented industrial parks. However for speedy execution of plans for industrial parks, Singapore may play a key-role. More countries may be attracted if industrial parks achieve highest standard of workmanship and government incentives.

Land grabbed by land mafia must be recovered and allotted to genuine industries on approval of their feasibility. For industrial projects, foreign participants should be allotted land in industrial parks according to sanction of projects.

Expeditious completion infrastructure and utility services. Provision for executive and staff housings and dormitories. Construction of at least two five star hotels. Construction of pre-fabricated SME with preference to women entrepreneurs. Time is the essence and delay could keep on multiplying cost of development and infrastructure.

If we have to prepare for 2005 and march with implementation of conditionalities of new world order that lays emphasis on WTO prescription of competitiveness, productivity and broaden the export base coupled with all refinement and innovation, our government should ensure that not a day pass without implementing decision taken on action plan.

Source: Business Recorder
 

Finance Minister Shaukat Aziz has recently spoken in glowing terms about the Gwadar port project and how it is going to bring prosperity to Pakistan. He claims that the development of a new port will open up the almost closed Mekran coast of Balochistan and bring new life to one of the most isolated fishing communities in the world. The new facility will also facilitate other countries that need outlets for their landlocked economies. In fact, it has been contended, Karachi Port and Port Qasim suffice for the volume of maritime trade we have at present. (This in the face of the fact that cargo meant for Pakistan at times goes on to eastern Asia simply because ships cannot dock for lack of jetty space.) Gwadar Port, when it is ready in a few years, will be a transit port for the Central Asian hinterlands which includes a huge landlocked region of China, Afghanistan and the Central Asian Republics.

Does this look like our Toynbean response to the challenge of Balochistan, after which we will take off as a modern state? Unfortunately, we have a bad record of faltering. The Gwadar port project, we recall, was started in 1992 but was held up due to political instability in Pakistan, much of it spread by the “military agencies” who placed lethal articles in the Urdu press about how a “port of sin” was being established in the sensitive area of Balochistan, just because the PPP government was not acceptable to it after the fall of Nawaz Sharif in 1993. The PPP approached Holland to finance the project but to no avail. Later, Oman, which has a large Baloch population, was approached. Although Sultan Qaboos expressed interest in the development of the region, the Opposition parties in Pakistan assailed the Bhutto government for trying to “hand over” the port to the US government after US interests in the region increased following the Gulf war in 1991. A number of Pakistani journalists now doing TV shows had actually reported the US ambassador of that time measuring out land in and around Gwadar allegedly for a military base.

Be that as it may, it is now estimated that once the Gwadar port complex is completed, nearly twenty countries of the Middle East, Central Asia and South Asia could benefit from the mega-project. The complex will provide facilities of warehousing, trans-shipment, transit and coastal trade, and commercial and industrial openings for international export-import trade. The Chinese government is providing a soft loan of $198 million while the Pakistani government has contributed $50 million for the first phase of this mega-project that is expected to be completed “in three phases in three years”. This was funnily said some time ago. However, the project was inaugurated anew in 2002, fully ten years late, after the government of General Pervez Musharraf was able to remove the glitches and bring back the offended Chinese. There is a road coming up between Karachi and Gwadar which will open up the Mekran coast to the rest of the economy. The Mirani Dam is planned for the region for the provision of water. A visual impression of the work in progress is impressive. After the Karakoram Highway, which is clearly phase one of the ultimate programme, the port at Gwadar will be a mark of Pakistan’s friendship with China. We hope General Musharraf will make sure that the project is not derailed this time round. *

‘Inspectors’ under CWC

A three-member team of UN inspectors came to Pakistan on April 28 to see if Pakistan was abiding by the conditions of the Chemical Weapons Convention (CWC). The CWC entered into force in 1996 after almost all the UN members had signed it and a large majority had also ratified it. The signatories could declare their chemical weapons dumps and yet accept the conditions of the treaty without fear of losing them. The treaty upon ratification imposed the condition of inspection. Both India and Pakistan ratified the treaty and accepted inspections. In 1999 when Pakistan made ready to ratify the treaty a lot of noise was made against it by some of Pakistan’s famous retired “strategists”. The Urdu press picked up the discussion and condemned, without reading its text, a treaty that Pakistan had signed in 1992. Now the Musharraf government has made it clear that the UN inspectors under CWC are carrying out a routine check under a treaty obligation. Regrettably, few people are listening.

The onslaught goes like this: America is behind this whole scheme of looking for chemical weapons in the Islamic world. After the UN inspectors give a clean chit to the countries inspected, the Americans refuse to believe it and invade the said country. Only Islamic countries are targeted by the UN inspectors and others like India are let off the hook. Pakistan must tell the IUN inspectors to go away before the inspection develops into something else and the inspectors insist on examining our nuclear programme at the Kahuta laboratories.

The suggestion is that although Pakistan has signed the treaty it should now think of denouncing it after the invasion of Iraq by the United States. This is ridiculous. Pakistan has not signed the NPT and therefore does not accept inspections under it. But its nuclear power plant in Karachi is under full-scope safeguards and it accepts UN inspection on that. The Iraqi example is not relevant. The UN had a separate treaty on weapons of mass destruction (WMD) with Iraq after the 1991 defeat. No such thing exists for Pakistan. Thus there is no threat from UN inspectors to Pakistan’s nuclear installations.
 

The government in Pakistan is reported to be finalizing a massive plan for the development of entire Gwadar coastal region.

Official recently told local newspapers that substantial funds were being allocated to create new infrastructure facilities in Gwadar coastal areas including Free Trade Zone.

The authorities also said that the government "has started holding negotiations with local and foreign companies" to develop the Phase 2 of Gwadar deepsea port, at a reported cost of $524 million.

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

Phase 2 will be developed through a private sector Build Operate Transfer (BOT) and Built Operate Own (BOO) basis. The work is expected to include 23 berths, two container terminals, two dry bulk terminals, two oil terminals, one ro-ro terminal, one bulkcargo terminal, one general cargo terminal and channel dredging from 15.6m to 20m.
 

RAWALPINDI, Pakistan : May 06 (PNS) - President General Pervez Musharraf Wednesday expressed the hope that cooperation between Pakistan and China in various fields would grow further in the years to come.

The President stated this at a meeting when a seven member delegation of the Chinese Atomic Energy Authority led by their Vice Minister and Chairman Zhang Huazha called on him. President Musharraf recalled the excellent and time-tested relations between the two countries. Welcoming the Chinese delegation, he expressed gratitude on behalf of the Pakistani nation to the Peoples' Republic of China for their assistance in the setting up of 300 Megawatt Chashma 2 nuclear power plant.

General Pervez Musharraf lauded the courageous response from the Chinese Government reiterating that work on Gwadar port would continue undeterred despite the recent terrorist act. He said the Baluchistan Government has been directed to ensure safety and security of all personnel working on the project. The Chinese delegation thanked the Government and people of Pakistan for the hospitality being extended to them. They said that they were looking forward to building the second nuclear power plant at Chashma.