Pakistan and Russia are due to formally sign an amended Intergovernmental Agreement (IPA) on the North-South Gas Pipeline Flagship Project (NSGPP) on Friday.
The pipeline, which is being built by Russia, stretches 1,100 kilometers from the Pakistani province of Punjab to the port city of Karachi.
The project will cost about $ 2.25 billion, Pakistani officials said. Russian officials have not yet completed their assessment.
According to the revised agreement, Pakistan will have a majority stake with a 74% stake in the 1,122 km long pipeline from Karachi (Port Qasim) to Kasur (Punjab) and Russia will have a 26 percent stake.
“After signing the amended agreement, both parties must sign a share ownership agreement, agreement managers on various trade agreements within 60 days, and a special purpose vehicle (SPV) will be developed for the project,” the reports said.
Pakistan and Russia signed an agreement to build a north-south gas pipeline in 2015. Under the agreement, Russia will fund 85 percent of the pipeline project cost. The pipeline was built on the Build, Own, Operate and Transfer (BOOT) model, which required Russia to transfer ownership of the project to Pakistan after 25 years of commissioning.
The project has moved slightly since 2015, mainly due to disagreements over US obligations and sanctions against the Russian state conglomerate Rostec.
In 2014, the US imposed sanctions on several Russian companies. Construction of the facility would begin later this year.
Latest posts by News Desk (see all)
- FBR asked to enhance efforts for Broadening Tax Net - May 27, 2023
- National Savings Rate for June-2023 - May 27, 2023
- Islamabad to get a new “Luxury Resort” - May 27, 2023
