Sindh invites bids for SEZ development
Initial development work will take around eight months
SEZMC CEO said the company had fixed the cost of land at one-fourth of the market price starting from minimum Rs10 million per acre. PHOTO: FILE
KARACHI:
The government of Sindh has formally launched the Dhabeji Special Economic Zone located in Thatta district near Port Qasim.
In this connection, the Sindh Economic Zones Management Company (SEZMC) has invited proposals for the development and operation of Dhabeji project through an advertisement in leading newspapers, according to a statement issued on Monday.
“The authority has invited bids from potential developers of the SEZ,” said SEZMC Chief Executive Officer Abdul Azeem Uqaili while talking to The Express Tribune. “The initial process of development will take around eight months and final bidder will be given 18 months to make the SEZ operational.”
This would be the first phase, he said and added that the developer would be tasked to complete at least 70% of development work within the given timeframe after which he would be granted approval for the second phase.
He added that the management company would prefer a developer who could also attract different industries besides project construction so that the SEZ could become functional immediately. Elaborating, he said the government would provide required land and act as a facilitator while the developer would make all the investment.
“The developer will also run the SEZ while the government will only act as a facilitator,” he said. “The selected bidder will be liable to provide utilities including electricity and gas and monitor the zone.”
The CEO pointed out that the federal government had set aside a budget of Rs4 billion for a dedicated grid station.
“The contract will be given to the developer who gets a higher technical score as per the structural model of the company and quotes the lowest cost,” he said. “He will then be able to sell plots to other companies to earn revenue.”
The government would not charge anything from the developer, Uqaili said. The SEZ will be spread over 1,530 acres of land.
He pointed out that the government was not aiming to earn from the SEZ rather it focused on facilitating the private sector, which could generate jobs. “Our aim is to establish a dedicated site in Sindh, which can attract industries,” he said.
SEZMC had fixed the cost of land at one-fourth of the market price starting from a minimum of Rs10 million per acre, he said.
The land cost at the Bin Qasim Industrial Park starts from Rs30 million per acre and at the Korangi Creek Industrial Park from Rs160 million. These two zones fall under the federal government’s control.
On the other hand, the SEZ at Faisalabad (Allama Iqbal Industrial City) offers plots at Rs6-7 million, which makes Sindh uncompetitive in attracting the industry.
In 2012, the government introduced the SEZ law and approved the construction of 12 SEZs, of which four were in Sindh. However, no economic zone has been made fully functional as yet.
Dhabeji was one of the last three SEZs which the federal government decided to include in the China-Pakistan Economic Corridor (CPEC) and hence it was tasked with development on a fast track.
The other two SEZs were Rashakai Economic Zone in Khyber-Pakhtunkhwa (K-P) and Allama Iqbal Industrial City in Faisalabad.
Published in The Express Tribune, October 29th, 2019.
The government of Sindh has formally launched the Dhabeji Special Economic Zone located in Thatta district near Port Qasim.
In this connection, the Sindh Economic Zones Management Company (SEZMC) has invited proposals for the development and operation of Dhabeji project through an advertisement in leading newspapers, according to a statement issued on Monday.
“The authority has invited bids from potential developers of the SEZ,” said SEZMC Chief Executive Officer Abdul Azeem Uqaili while talking to The Express Tribune. “The initial process of development will take around eight months and final bidder will be given 18 months to make the SEZ operational.”
This would be the first phase, he said and added that the developer would be tasked to complete at least 70% of development work within the given timeframe after which he would be granted approval for the second phase.
He added that the management company would prefer a developer who could also attract different industries besides project construction so that the SEZ could become functional immediately. Elaborating, he said the government would provide required land and act as a facilitator while the developer would make all the investment.
“The developer will also run the SEZ while the government will only act as a facilitator,” he said. “The selected bidder will be liable to provide utilities including electricity and gas and monitor the zone.”
The CEO pointed out that the federal government had set aside a budget of Rs4 billion for a dedicated grid station.
“The contract will be given to the developer who gets a higher technical score as per the structural model of the company and quotes the lowest cost,” he said. “He will then be able to sell plots to other companies to earn revenue.”
The government would not charge anything from the developer, Uqaili said. The SEZ will be spread over 1,530 acres of land.
He pointed out that the government was not aiming to earn from the SEZ rather it focused on facilitating the private sector, which could generate jobs. “Our aim is to establish a dedicated site in Sindh, which can attract industries,” he said.
SEZMC had fixed the cost of land at one-fourth of the market price starting from a minimum of Rs10 million per acre, he said.
The land cost at the Bin Qasim Industrial Park starts from Rs30 million per acre and at the Korangi Creek Industrial Park from Rs160 million. These two zones fall under the federal government’s control.
On the other hand, the SEZ at Faisalabad (Allama Iqbal Industrial City) offers plots at Rs6-7 million, which makes Sindh uncompetitive in attracting the industry.
In 2012, the government introduced the SEZ law and approved the construction of 12 SEZs, of which four were in Sindh. However, no economic zone has been made fully functional as yet.
Dhabeji was one of the last three SEZs which the federal government decided to include in the China-Pakistan Economic Corridor (CPEC) and hence it was tasked with development on a fast track.
The other two SEZs were Rashakai Economic Zone in Khyber-Pakhtunkhwa (K-P) and Allama Iqbal Industrial City in Faisalabad.
Published in The Express Tribune, October 29th, 2019.