ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Sunday approved the opening of an escrow account for depositing $900 million to make the multibillion-dollar Reko Diq project operational following the Supreme Court of Pakistan’s approval of the deal.
The council likewise supported one more synopsis of endorsing the Public authority of Pakistan’s subsidizing plan of as much as $717 million over a time of six years.
Government Clergyman for Money and Income Representative Ishaq Dar managed the board of the Bureau meeting for all intents and purposes.
After the adverse arbitral awards of the International Centre for Settlement of Investment Disputes (ICSID) and expected similar award from the International Chamber of Commerce (ICC) against the federation and the Balochistan province, respectively, the Governments of Pakistan and Balochistan have entered into an out-of-court settlement with M/s Tethyan Copper Company Pvt Limited, Australia (TCCA), which is jointly owned by Barrick Gold Corporation of Canada and M/s Antofagasta PLC of Chile
The joint venture was divided into 50 percent shares by Barrick Gold Corporation, 25 percent by the federal government through a single special purpose vehicle, Pakistan Minerals (Private) Limited (SOEs’ SPV), and 25 percent by Balochistan as 10 percent direct free carried plus 15 percent through Balochistan Mineral Resources Limited (GoB SPV), with the Pakistani government paying for both the project’s capital and operating costs.
The ECC considered and approved two important agenda items related to the Reko Diq project, paving the way for the project’s early start, according to an official statement from the Ministry of Finance.
The Service of Energy (Petrol Division) presented a rundown of gathered revenue concerning the sum held in an escrow account regarding the Reko Diq project question settlement.
The terms of the settlement stipulate that the Pakistani government must pay off its debts to Antofagasta PLC.
The committee allowed Finance Division to direct GHPL (for its own share as well as GoB’s share), OGDCL, and PPL to deposit $22,718,173 in the escrow account from March 31, 2022, to December 15, 2022, in accordance with the terms of the agreed-upon settlement.
The ECC also made it possible for the Finance Division to arrange the payment of $8,519,314 in interest on the GoB’s share of the Rs65 billion loan that the GHPL had already secured with the GoP’s guarantee.
In addition, the ECC permitted the concerned divisions of the Pakistani government and the SOEs to ensure that the deposit amount and interest deposited by the SOEs in the escrow account would be included in the consideration for Reko Diq Mining Company Limited’s share purchase.
The Finance Division’s summary of the Pakistani government’s funding plan for Balochistan’s participation in the Reko Diq project was also considered and approved by the ECC.
The proposal calls for the Pakistani government to make a six-year funding commitment of $717 million to the Government of Pakistan for the GoB SPV Project Capital Commitment.
Originally published in The News
