Pakistan to Invest in Shipyard

Tuesday, January 22, 2008
The Pakistan government has decided to upgrade the basic infrastructure for construction of commercial cargo ships and warships, including F-22 P frigates, in Karachi, according to a report on www.uniquepakistan.com.

The government has allocated funds for the fiscal year 2007-08 and it has already dropped Karachi Shipyard & Engineering Works Limited (KSEW) from its proposed privatization list. It is envisaged that if shipbuilding projects for the Pakistan Navy, Karachi Port Trust (KPT), Maritime Security Agency (MSA) and Pakistan National Shipping Corporation (PNSC) are undertaken successfully, then KSEW is likely to get export orders from overseas countries. This would significantly contribute towards earning foreign exchange for Pakistan.

Construction of basic infrastructure for shipbuilding would be completed within 24 months. The project envisages indigenous construction of commercial vessels would be started under the transfer of technology arrangement with China Shipbuilding and trading Company (CSTC). KSEW is the only shipbuilder of its type in Pakistan.

RFP

Government of Pakistan has approved a plan to establish two new large sized shipyards at Gwadar in Balochistan Province (“Gwadar Shipyard”) and Port Qasim near Karachi in Sindh Province (“Qasim Shipyard”) on a fast track basis.

The Gwadar Shipyard is planned to be established at Gwadar East Bay (Shamba Ismail area), on an area of approximately 500 acres (2 sq. kilometers approx). Initially planned to carry out ship repairs, it shall lead to ship building of up to Very Large Crude Carrier (VLCC) and Ultra large Crude Carrier (ULCC) size and will have at least two dry docks of approximately 600,000 DWT.

The Qasim Shipyard is planned to be developed adjacent to Korangi Fish Harbour (Port Qasim Area), on an area of 500 acres (2 Sq. kilometers approx) with at least two dry docks of 600,000 DWT. Main function of this shipyard will be building of large ships up to VLCC/ULCC size and construction of Offshore / Onshore Oil Rigs. It will also have ship repair facilities.

The Shipyards are to be developed with minimum financial support from the Government of Pakistan. The projects are conceived in a manner, whereby the private sector will be responsible for designing, financing, building, operating and maintaining the Shipyards.

On behalf of the Government of Pakistan, Karachi Shipyard & Engineering Works Limited is seeking advisory services from internationally qualified and experienced advisory firms ideally led by a reputable international financial institution / investment bank and comprising of requisite technical, legal and other consultants to assist the Government of Pakistan in planning, development and implementation of these projects.

Proposals for advisory services for both projects separately are solicited from internationally qualified and experienced advisory firms with demonstrable experience in structuring world class shipyard development related transactions.

The Request for Proposal (RFP) package including the Terms of Reference (TOR) and other relevant information can be downloaded from the following websites:

(i) Karachi Shipyard and Engineering Works’ Official website at www.karachishipyard.com.pk

(ii) Planning Commission’s official website at www.planningcommission.gov.pk

(iii) Infrastructure Project Development Facility’s official website at www.ipdf.gov.pk

(iv) Public Procurement Regulatory Authority’s official website at www.ppra.gov.pk

A copy of the RFP can also be obtained in person from the following:

(i) Captain Shakil Naz PN at KSEW, Karachi (Email: ksew@cyber.net.pk) Tel Off: 92-21-9214037; Cell: +92-307-2316178

(ii) Mr. Aamir Qawi, Head - Projects, IPDF Islamabad (Email: aamir.qawi@ipdf.gov.pk) Tel: +92-51-9209233

Proposals should be submitted latest by February 15, 2008 to: Managing DirectorKarachi Shipyard and Engineering WorksPO Box # 4419, West Wharf, Dockyard Road, Karachi -7400Tel: +92-21-9214010, Fax : +92-21-9214020, 9214030, Email: ksew@cyber.net.pk

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