New Gwadar airport approved at Rs 51.298 billion, a 550% higher cost

New Gwadar airport

The Federal Government made approval for setting up of New Gwadar International Airport (NGIA) having over 550 percent higher cost i.e. Rs 51.298 billion as compared to Rs 7.675 billion approved in 2010.

The Executive Committee of the National Economic Council (ECNEC) made this decision, along with issuing the orders to the Pakistan Civil Aviation Authority (PCCA) to make an energy plan for New Gwadar International Airport (NGIA) within three months.

Ministry of Planning, Development and Special Initiatives, instructed the ECNEC that the plan was deliberated by the CDWP in its conference conducted on September 20, 2021, and suggested the project to the ECNEC with the total cost of Rs 51.298 billion having Foreign Exchange Component (FEC) of Rs 34.471 billion.

Read more: New Gwadar International Airport 2nd revised project okayed by ECNEC

The project was firstly permitted by the ECNEC on January 21, 2010, with a total cost of Rs 7.675 billion with an Omani Grant of US$ 17.50 million. But, the project was revised and the scope of work considerably improved. The CDWP reassessed the project, revised 2nd reviewed PC-I with a cost of Rs 51.298 billion.

Moreover, the project organizers informed that it will be funded to the tune of Rs 750.00 million from PCAA’s own resources, Rs16.078 billion from PSDP, Rs 643.063 million from Omani Grant, and Rs 33.827 billion from Chinese grant.

Besides this, the ECNEC also recommended references of the CDWP for obedience which are as follows:

  • For the aim to be funded and implemented by the Pakistani side, PCAA will first implement the scope that is fundamentally needed for processes of the airport and the remaining scope will be started after the above works have been finalized
  • PCAA and Gwadar Development Authority, Government of Balochistan will confirm that the region nearby the airport has been safe to conform to the necessities of Pakistan National Airfield Clearance Policy (NACP) and International Civil Aviation Organization (ICAO).
  • PCAA will make and submit an Energy Plan for NGIA in 3 months. Prospective for renewable energy generation will also be discovered as part of the plan.

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