ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Friday approved $200 million equity share of Pakistan for the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project.
The ECC, which met with Finance Minister Ishaq Dar in the chair, gave the approval for $200 million equity share of Pakistan in the TAPI Gas Pipeline Project Company on the proposal of Ministry of Petroleum and Natural Resources. It also approved release of $12 million out of this share for the preliminary works in four equal tranches, starting from January 2016 as per the disbursement plan. Approval for draft shareholders agreement, investment agreements and authorization for ISGS to sign these agreements was also given by the ECC.
The overall cost of TAPI project is $10 billion. Turkmenistan, being the consortium leader for the project, has agreed to contribute 85% of equity. TAPI will not only connect Afghanistan to South Asia and Central Asia, but will also play an important role in giving Afghanistan political credibility at the regional level. A 700-kilometre portion of nearly 1,800-kilometre TAPI pipeline will be built in Afghanistan and according to officials, is scheduled to be completed by 2019. The Asian Development Bank stated that once completed, the pipeline is expected to export up to 33 billion cubic meters of natural gas from Turkmenistan to Afghanistan, Pakistan and India annually for over three decades.
On a proposal submitted by Aviation Division, the ECC also granted approval for guarantee support of Rs 4.4 billion for Pakistan International Airlines enabling the airline to improve its products and services. The ECC also approved a proposal for payment of two-month salaries of Pakistan Machine Tool Factory (PMTF) Karachi employees.