December 12, 2022 (MLN): The Economic Coordination Committee (ECC) has approved the funding plan of $717 million for the share of the Government of Baluchistan (GoB) in the Reko Diq Project, a press release issued by the finance division on Sunday showed.
Finance division submitted a proposal for a funding commitment of $717mn over the period of 6 years by GoP in respect of GoB SPV project capital commitment to be provided by the government.
During the meeting, ECC has approved two important agenda items related to the Reko Diq project, thus paving the way for the early start of the Reko Diq Project.
Moreover, a summary submitted by the Ministry of Energy Petroleum Division on accrued interest with respect to the amount held in an escrow account in connection with the Reko Diq Project dispute settlement.
It was presented that the government and the Provincial GoB entered into an out-of-court dispute settlement with M/s Tethyan Copper Company Pvt Limited- a consortium of Barrick Gold Corporation of Canada and M/s Antofagasta PLC of Chile, in respect of Reko Diq Copper-Gold Project in Chaghai district of Baluchistan.
As per settlement terms, the government of Pakistan has to clear liabilities to Antofagasta PLC.
In light of the terms of the agreed settlement, the ECC allowed the finance division to direct GHPL (for its own as well as GoB’s share), OGDCL, and PPL to deposit the aggregate amount of interest to the sum of $22.72mn in the escrow account from March 31, 2022, to December 15, 2022.
The ECC further allowed the finance division to arrange the interest payable for GoB’s share amounting to $8.52mn from the loan of Rs65 billion already raised by the GHPL with the GoP guarantee.
Further, the ECC allowed the concerned Divisions of GoP and the SOEs to act in such a manner to ensure that the deposited amount along with interest deposited by the SOEs in the escrow account forms part of the consideration for share purchase of Reko Diq Mining Company Limited.
Copyright Mettis Link News
Posted on:2022-12-12T11:54:42+05:00
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