ECC clears way to early start of Reko Diq project

The Economic Coordination Committee (ECC) of the cabinet approved two important agenda items related to the Reko Diq project, including the agreement with the Barrick Gold Company, paving the way for its early start of the mega project, the finance ministry said in a statement on Sunday.

Finance Minister Ishaq Dar chaired the ECC meeting via a video link. During the meeting, the energy ministry submitted a summary on accrued interest with respect to the amount held in an escrow account in connection with the Reko Diq project dispute settlement.

The meeting was informed that the federal government and the provincial government of Balochistan had entered into the out-of-court dispute settlement with the Tethyan Copper Company with respect to the Reko Diq Copper-Gold Project in the Chagai district of Balochistan.

As per the terms of the out-of-court settlement, the federal government would clear liabilities to Antofagasta Plc, making a payment of $900 million plus the accrued interest. The ECC allowed finance division to direct the Government Holdings (Private) Limited (GHPL), the Oil and Gas Development Company Limited (OGDCL) and the Pakistan Petroleum Limited (PPL) to deposit the aggregate amount of $22.7 million in the escrow account.

The ECC further allowed the finance division to arrange the interest payable for the government of Balochistan’s share amounting to $8.52 million from the loan of Rs65 billion already raised by the GHPL with the government of Pakistan’s guarantee.

The ECC also considered and approved a proposal of the finance division through a summary on funding plan of the government of Pakistan for share of the government of Balochistan in the Reko Diq project. The approval of these agenda items now paved the way for early implementation of the project.

On Friday, the government received a favourable opinion from the Supreme Court on the settlement agreement for the Reko Diq project, which was a condition for the finalisation of the settlement. Also last week, the Sindh Assembly and the Balochistan Assembly separately passed the resolutions in favour of the project.

(WITH INPUT FROM NEWS DESK)